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Communisis

April 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CMS
  • Price:
  • 65p
Communisis has reported its full year results. Sales were up 18% to £270.1m with pretax profit up 16% to £13.3m. Adjusted eps was 4.2p.The main success driver wasn’t the design or production arms. Instead, it was the deployment side, which delivered just about all of the growth– this is a portfolio of businesses that are involved in the management of third party supply chains for Proctor & Gamble (P&G) in 15 countries. Divisional profits went from £4.3m to £9.5m and contribution margins doubled to 17% (2012 8.6%). Chief executive Andy Blundell says this was mainly due to higher margins on fee based activities, together with the benefit of certain performance related gain-share arrangements. Any investor is bound to ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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