COMMUNISIS reported higher half year profits after securing a string of new contracts and increasing its share of overseas markets.
The Leeds-based communication services company, which has signed contracts with Lloyds Banking Group and Yorkshire Building Society, is also gearing up to make acquisitions. In the six months ended June 30, the company’s profit from operations, before exceptional items, rose 19 per cent to £5.1m.
Turnover was eight per cent higher at £121.2m. Overseas revenues grew to 13 per cent of total revenues. In the same period last year, overseas revenues accounted for just five per cent of sales.
The interim dividend was also nine per cent higher at 0.60p. Communisis revealed that
£20m had been raised as growth capital for investment in new contracts, restructuring costs and small acquisitions.
The bank debt was refinanced in July, with a £55m revolving credit facility committed until March 2018. Significant new contracts included a nine year deal with Nationwide Building Society. The company said its restructuring was ongoing, and it was being combined with site consolidation.
Communisis chief executive, Andy Blundell, said yesterday: “Communisis has continued to execute its strategy for profitable growth, delivering results that give the board confidence for the remainder of the year.
“There have been a number of very significant developments during the first half of 2013, especially the long-term contract wins with Lloyds Banking Group and Nationwide Building Society together with a substantial geographical expansion of our services to P&G.
“The group is well placed to take advantage of fast developing market opportunities, due to its strengthened financial position and its reputation for production excellence and innovation.”