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February 15, 2013 10:49 pm
After years in a vicious cycle of increasing competition and falling demand, is Communisis, the marketing services provider, now in a virtuous one?
This week it raised £20m in a placing that was oversubscribed. The money is needed to continue its strategy of moving from old-fashioned junk mail and bank statements to tailored print and digital marketing communications
Its universal approach and trusted brand – after years of printing cheque books and regulated financial material – has won it two big contracts recently with BT and Nationwide building society.
The Leeds-based business needs the money to ensure it keeps the contracts and can continue to make small acquisitions to help it complete the digital transition to higher-margin business.
An update said that trading was in line with expectations and dividends would continue to grow. It is also earning more work abroad – accounting for 7 per cent of revenues in 2012, against 4 per cent the year before. Net debt fell from £24.7m to £21m over the year.
The placing was priced at 40p, a discount of 12.3 per cent to the closing price of 45.6p on February 13.
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