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Procter & Gamble (P&G)

Communisis reports 27% rise in profits for H1 2011

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By The Drum Team, Editorial

July 26, 2011 | 2 min read

Leeds Marketing services company Communisis has reported a 27% increase in operation profits to £3.6m.

In reporting its Interim Results for the first half of the year, ending 30 June, the company has reported a period of profitability, with a 4.4% increase in its operating margin, and that its investments in business acquisitions, which cost £6.8m, increased its net debt to £23.6m.

New clients for the first half of the year included ‘a significant contract’ with Proctor & Gamble, for marketing worth £10m a year, the BBC TV licensing contract for four years, worth £4.5m a year, as well as for Virgin Media, Speedy Hire, Premium Credit, iRed and several other new wins across multiple sectors.

The company also said that its consolidation of Leicester logistic facility into Newcastle was completed, with further restructuring of direct mail and central overhead functions are planned for the second half of the year.

Andy Blundell, chief executive of Communisis, commented: "I am pleased to be able to report these strong results which confirm that Communisis is successfully staying close to its customers and anticipating their future requirements in a rapidly evolving market. Our strength is rooted in our ability to combine the compelling power of data and creative solutions with an unrivalled capacity to deliver our customers' messages through any channel of communication. We are making good progress against our plans to grow and transform the business and this confidence is reflected in an increase in the interim dividend. Our aim remains to improve profitability, as measured by the margin of operating profit on sales, so as to achieve double digit returns over the medium term."

The company will also reduce its number of sites from 14 to nine by the end of 2011.

Procter & Gamble (P&G)

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