Communisis to restructure to save costs
Communisis has announced a new and “simplified” structure, which it hopes will reduce its costs.
The Leeds based group is now split into two divisions - brand deployment (which is made up of Deploy and Shopper) and customer experience (previously Produce and Design).
It stated in its Interims report that the move would “de-layer” its management structure, leading to savings of around £3m.
"Communisis has grown profitability, sustained strong cash generation, further reduced net debt and increased the dividend. Trading in our main markets has been good and we have won significant new, long-term contracts,” explained Communisis chief executive, Andy Blundell.
“A simplified two divisional structure addresses our main client opportunities and reduces cost. We remain confident of delivering on our full year expectations for the Group."
The Group has shown an adjusted profit before tax rising from £5.4m to £6.5m, with total revenue increasing from £174.6m to £174.9m.
During the 6 month period it signed a new 6 year contract with LV and expanded its international operations, with overseas sales now accounting for 24% of its total revenue.