Marketing services provider Communisis (CMS) secured deals with some high-profile companies last year. These included the provision of European brand building services for Proctor and Gamble, as well as a 10-year customer communications contract with Lloyds Banking. However, a £21m goodwill impairment charge, relating to acquisitions made at the turn of this century, depressed pre-tax profits.
The group’s overseas expansion helped to drive pass-through revenues, where purchased materials are passed on to clients at cost. But the Deploy segment was the stand-out performer, as reflected by a 44 per cent increase in adjusted operating profits to £13.8m. However an increase in lower-margin work during the year meant adjusted operating profits for the group's Design segment dropped marginally to £3.4m. This meant overall group operating margins remained at 6.9 per cent. Chief executive Andy Blundell said the group believes it will achieve its target for double-digit margins by 2017.
The group invested £40m in its design business during 2014. This was spent on launching its digital agency Psona as well as five acquisitions. Mr Blundell said this business would contribute more to the group’s revenue mix in future.
Broker N + 1 Singer expects adjusted EPS of 7p this year, up from 4.7p in 2014.
COMMUNISIS (CMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 58p | MARKET VALUE: | £120m | |
| TOUCH: | 57-58p | 12-MONTH HIGH: | 73p | LOW: 47p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | na | |
| NET ASSET VALUE: | 56p* | NET DEBT: | 31% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 193 | 4.9 | 3.2 | 1.29 |
| 2011 | 208 | 4.2 | 3.0 | 1.50 |
| 2012 | 230 | 5.1 | 2.8 | 1.65 |
| 2013 | 270 | 6.2 | 2.7 | 1.80 |
| 2014 | 343 | -13.2 | -7.7 | 2.00 |
| % change | +27 | - | - | +11 |
Ex-div: 16 Apr Payment: 15 May *includes intangible assets of £176m, or 85p a share | ||||
