Communisis sees bright future

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Shares in marketing specialist Communisis jumped seven per cent this morning after the group reported a 22 per cent increase in operating profits in the first half of 2012.

The Leeds-based group said it is benefiting from a switch in direct marketing away from mass-market mail shots to highly personalised communications with an “audience of one”.

The banking crisis and the subsequent increase in regulation is changing the way financial products are sold to customers and this will play to Communisis’ strengths as direct mail shots become more personalised.

In addition anger about the rising costs of gas, electricity and water means that utility customers are demanding a more honest conversation with their providers.

Communisis said that this means there has to be absolute clarity in the message.

The group’s operating profits rose 22 per cent to £4.4m in the six months to June 30 on the back of a 15 per cent increase in turnover to £112.6m.

Pre-tax profits slipped from £2.9m to £2.7m as a result of having to pay out professional fees following three acquisitions. In addition net finance costs rose because of a lower pension credit this time around.