Communisis PLC Regulatory News (CMS)

 15 May 2014

Communisis plc

("Communisis" or the "Group")

Interim Management Statement

Leading provider of personalised customer communication services Communisis plc (LSE: CMS) issues its Interim Management Statement for the first quarter ended 31 March 2014.

Trading for the period was in line with management's expectations.

The following developments have supported the Group's growth strategy in all three segments:

· Two small acquisitions in Design have brought video and film production expertise and digital creative capabilities to the Group, which further complement the integrated service offer;

· A second long-term contract with Lloyds Banking Group for an initial ten year term has added inbound imaging and mail processing as a new service line within Produce; and

· A contract extension to provide external brand building services for Procter & Gamble SA until the end of 2019 has strengthened the managed service proposition in Deploy.

Communisis keeps its overall production capability under review and aligns it with market demand. In this context, the Group announces today its intention to rationalise the facility at Cross Gates Leeds, primarily in response to declining direct mail volumes. A consultation has commenced with a view to reducing the headcount by about 75. This would give rise to an estimated exceptional charge of approximately £1.5m in the second quarter with an equivalent cash cost in the second half of the year. Communisis' other sites in Leeds and in Copley, Halifax are not affected by this proposal.

Communisis will announce Interim Results for the six month period ending 30 June 2014, on 31 July 2014.

Andy Blundell, Chief Executive, commented:

"Communisis operates in fast-changing markets and each of our three segments faces different opportunities and challenges. We continue to invest in our growth strategy to build a comprehensive range of integrated services, whilst also taking any necessary action to adjust our production capability in more mature areas. Overall our view on the outlook for 2014 remains unchanged"

For further information please contact:

About Communisis

Communisis is a UK leading provider of personalised customer communication services that specialises in helping clients communicate with their customers more effectively and more profitably in fast-changing markets.

Communisis has a reputation for production excellence and innovation and is trusted by many leading, consumer facing brands to design, produce and deploy multi-channel personalised customer communications accurately, securely, reliably and at scale.