An investment of about £10m in two presses at its Liverpool facility look to be reaping rewards for Communisis, a marketing services provider.

This week the company announced that it had won a nine-year contract with Nationwide to carry out the building society’s transactional and marketing mailings, deepening an existing relationship between the two groups.

Communisis has its roots as a traditional printer and is still the UK’s largest printer of cheque books. But it has been pushing more deeply into higher-margin marketing services.

According to its interim report for the six months to the end of June, it delivered operating margins of 5 per cent on sales – pretty good for a printing company. Expect these to climb as it pushes further into marketing services. And with its dividend (interim of 0.55p) well covered at close to 4 times earnings, there is scope for significant increases here too.

The shares are up almost 25 per cent since the start of the year.

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