Communisis group chops £9m off net debt
MARKETING COMMUNICATIONS group Communisis saw adjusted pre-tax profit rise and brought down net debt substantially.
The group, which employs 800 of its 2,000 workforce in Yorkshire, saw adjusted pre-tax profit rise 15 per cent to £16.7m for the year ended December 31, 2016. Communisis also reduced net debt by £9m to £30m.
Andy Blundell, chief executive of Communisis, told The Yorkshire Post: “We are positive about these results, 2016 was a good year for the company. We saw strong growth in profitability. Earnings per share is up 17 per cent.
“Most importantly we achieved debt writedown of £9m to £30m.”
Finance director Mark Stoner said the business was achieving this reduction through an increase in earnings and a focus on better return on investment.
Full year dividend per share increased by 10 per cent 2.42p at the marketing specialist.
Communisis said that its direct mail operation, based in Cross Gates, Leeds, has so far seen no discernible impact from the vote to leave the European Union.
However, interest rate movement and changes in regulation in the financial sector helped the direct mail business as it led to an increase in the production of statutory communications.
“There is a direct relationship between changes in the interest rates, however large or small,” said Mr Blundell. “That prompts outgoing volume and inbound volumes and we’ve certainly seen that.”
The company is expecting to deliver further statutory communication as the financial firms go through rebrands and the industry goes through regulatory changes. Communisis is also set to establish its first ever presence in the US. The firm is expected to open an office in New York by June 2017, initially providing content-marketing services to LinkedIn.
“We have an exciting relationship with LinkedIn in content marketing,” Mr Blundell said.
He added: “We do see that expanding with other content marketing clients.”