Marketing firm hit by HSBC contract loss
SHARES in marketing specialist Communisis fell nearly eight per cent last night after the group said it expects an existing contract with HSBC Bank for Direct Mail services to be awarded to another supplier.
The Leeds-based group said the switch follows a competitive tendering process. It added that no termination notice has been received by Communisis, but a statement from HSBC that terminates its contract has been quoted in a trade publication.
The contract, which is worth £7m a year, is terminable on one month’s notice.
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Hide AdCommunisis said its separate and significant contracts with HSBC for transactional statement and billing and cheque printing are unaffected.
The group expects that the loss of revenue from this contract would largely be limited to the fourth quarter. It added that with strong performance in other areas, its current expectations for both 2011 and 2012 are unchanged by the contract loss.