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Communisis on message

Communisis posted strong growth in the first half, which isn't reflected in the cheap rating.
July 31, 2014

For Communisis (CMS), business is all about delivering the message, whether that be a utility bill or Facebook campaign for Tesco. In the first half, the message was all about growth. Underlying revenue jumped more than a quarter to £116m, with adjusted earnings per share up 18 per cent to 1.75p. Broker Cenkos expects 5p for the full year, up from 4.2p in 2013.

IC TIP: Buy at 62p

The growth is being driven by a big new 10-year contract with Lloyds Bank and rapid international expansion. Overseas revenues now make up almost a fifth of the group total, up from almost nothing a few years ago.