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11 Jul 2011 16:09
11 July 2011
Communisis plc
("Communisis" or the "Company")
HSBC Direct Mail Contract
Leading marketing services provider Communisis plc (LSE:CMS) today announces that it expects that its existing contract with HSBC Bank plc ("HSBC") for Direct Mail services will be awarded to another supplier, following a competitive tendering process. No termination notice has been received by the Company but a statement from HSBC to that effect has been quoted in a trade publication. The contract is terminable on one month's notice.
Communisis' separate and significant contracts with HSBC for Transactional (statement and billing) and Cheque printing are unaffected.
The current annual sales value of the Direct Mail contract is approximately £7m. The Company expects that the loss of revenue from this contract, were it to be terminated in the current financial year, would largely be limited to the fourth quarter.
With strong performance in certain of our other service areas, including work with new customers, management's current expectations for overall Group results for both 2011 and 2012 are unchanged by this development.
For further information please contact:
Communisis plc 0113 277 0202
Andy Blundell / Nigel Howes / Rima Awad-Sanders
Financial Dynamics 020 7831 3113
Matt Dixon / Ed Bridges / Clare Thomas / James Melville-Ross
Brewin Dolphin 0845 213 1000
Sean Wyndham-Quin / Mark Brady
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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