PRINTING group Communisis blamed a "perfect storm" of recession, meltdown in the financial sector and a sharp fall in bank marketing for a plunge in 2009 profits.
The Leeds based company described its annual results
as "disappointing", but said it is seeing signs of some customers returning to higher levels of marketing.
In addition it has signed up a number of new customers outside of the financial sector
, including big names such as Tesco, T-Mobile, William Hill, Ogilvy and Wolseley.
Chief executive Andy Blundell said the group had been hit hard by the collapse in the financial sector as it accounts for around 60 per cent of the group's business.
"HBOS was doing a lot of acquisition mailing in 2008, but that tap was turned off completely," he said, referring to the bank's bail-out by the Government and rival banking group Lloyds.
In spite of the economic difficulties, all parts of the group stayed profitable in 2009. But the Leeds Direct Mail business, which employs around 500 people, was particularly hard hit.
"The Leeds Direct Mail business was the largest factor in the reduction of group profits, but it remains a critical part of our business and we will invest in it," said Mr Blundell.
He said the division should see an improvement in 2010.
The group, which has diversified from traditional printing to specialise in marketing campaigns and targeted mailouts, said it made operating profits of £7.2m in 2009, down from £15m in 2008.
Revenues fell from £257.7m to £190.2m.
The Technology & Services division saw profits rise from £5.1m to £6.3m over the year.
