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24 Oct 2011 07:00
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24 October 2011
Communisis plc
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("Communisis" or the "Group")
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Interim Management StatementΒ
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Communisis plc (LSE: CMS), the leading marketing services provider, issues its Interim Management Statement for the third quarter ended 30 September 2011.
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The Group maintained its performance during the period and our expectations for overall Group results for the full year remain unchanged. We continue to see some demand variation across the Group's different service lines, but the combination of our IDC and SPS segment offerings is proving resilient and puts us in a strong position to capture new business.
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New customer wins during the third quarter included long term contracts with Boots UK and Northern Rock. A number of existing customer relationships were also significantly expanded most notably with Barclaycard increasing the range of marketing services outsourced to Communisis, and Procter & Gamble awarding us a further contract for the delivery of a large, multi-country loyalty scheme. Taken together, these relationships should deliver annual revenues in excess of Β£20m, underpinning our confidence in 2012 and future years.
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We are very pleased with progress on the BBC Television Licensing contract and with other customers which Communisis secured as a result of our acquisition of Orchestra Bristol Ltd. We recently informed employees at the Bristol site of our plans to transfer the fulfillment of all these contracts to our facilities in Liverpool, Manchester and Leeds and have entered into a consultation phase regarding the potential closure of the Bristol operation by early 2012. This could result in an additional exceptional restructuring charge of approximately Β£0.9 million in the second half of 2011 and deliver annual profit improvements in excess of this amount in 2012.
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Our partnership with Equifax continues to assist us in broadening our offer with five new marketing services products incorporating credit referencing data now being launched. We have also reached an exclusive agreement with Sorriso Technologies to develop an e-billing product, with targeted marketing communication features, that will substantially enhance our capabilities in this expanding digital market sector.
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Chief Executive, Andy Blundell, commented:
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"We are continuing to execute our plans for profitable growth and I am pleased with the further good progress we have made during this quarter. Customers drive our strategy and we remain focused on improving the effectiveness and efficiency of their marketing programmes and transactional communications."
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For further information please contact:
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Communisis plc | 0113 277 0202 |
Andy Blundell / Nigel Howes | |
FTI Consulting | 020 7831 3113 |
Matt Dixon / Clare Thomas | |
Brewin Dolphin | 0845 213 4730 |
Luke Boyce / Sandy Fraser |
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About Communisis
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Communisis is a leading Marketing Services Provider which provides services that support its customers' marketing programmes and transactional communications.
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Communisis offers a broad range of services that can be delivered either separately or in combination to make its customers' communications more targeted and more efficient and therefore more effective and more profitable.
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