Communisis PLC Regulatory News (CMS)

19 November 2012

Communisis plc

("Communisis" or the "Group")

Interim Management Statement

·; Trading in line with expectations and strong pipeline

Communisis plc (LSE: CMS), the leading marketing services provider, issues its Interim Management Statement for the third quarter ended 30 September 2012. The Board's expectations for results for the full year remain unchanged as the Group looks forward to completing a third consecutive year of significant growth.

Our markets continue to evolve rapidly and present considerable opportunities for Communisis to demonstrate its differentiated customer proposition. Many of the UK's leading consumer-facing brands increasingly recognise the value of the Group's ability to design, produce and deploy their customer communications efficiently, reliably and at scale. This has led to more projects incorporating our design services and resulted in a strong pipeline of bids that we expect to be confirmed before the year-end, for implementation early in 2013.

During the period, Communisis has been at the heart of the high profile launch of the new brand EE, which offers the UK's only 4G mobile and Fibre broadband service. This has been through the successful execution of a managed service contract for the sourcing and delivery of the associated marketing collateral to our client's 700 retail outlets throughout the UK and all of its direct mail requirements and internal communications.

In overall terms, we expect the annualised value of new business to more than offset the reduction in demand for more mature products. We continue to manage our cost base in line with market developments so as to maintain our competitiveness and margins. As part of this process we have decided to reduce our cheque personalisation capacity by closing the operations in Lisburn, Northern Ireland and consolidating production at certain of our other facilities. The required employee consultation process has already been completed. We have also decided to carry out a further restructuring of our direct mail operations in Leeds with the employee consultation process underway. Both proposals are expected to be implemented in January 2013. An exceptional charge for the aggregate associated costs, in the region of £1.5m,will be reflected in the results for the second half of 2012. The resulting annual cost savings are estimated to be £1.3m.

Andy Blundell, Chief Executive commented:

"The focus at Communisis continues to be the successful pursuit of profitable growth.

We are building our reputation as the trusted partner for the provision of customer communication services and in this context are pleased with the interest being shown by a number of major brands in the strength of our market leading propositions, especially for transactional documents, and look forward to announcing further new multi-year contract awards in the near future."

For further information please contact:

Communisis plc 0113 277 0202

Andy Blundell / Nigel Howes

FTI Consulting 020 7831 3113

Matt Dixon / Clare Thomas

Cenkos Securities 020 7397 8900

Ivonne Cantu / Alex Aylen

N+1 Singer 0845 213 1000

Sandy Fraser / Richard Lindley

About Communisis

Communisis is a UK leading marketing services provider, specialising in helping customers make their communications processes more profitable. It helps to reduce costs and improve the effectiveness of the whole business process of customer communications.

Through its proven experience and scale, it works with clients to transform their customer communications processes by enhancing and deploying customer data; providing technology to automate and streamline workflows; and have world-class production capabilities that can output via print and electronic channels.

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