Communisis reduces first half profit expectations
Tuesday, June 27, 2006
In a trading update for the half year to 30 June 2006, Communisis said that its Print and Direct Mail businesses was experiencing challenging conditions and the Company had taken the decision to rationalise Direct Mail into a single production centre of excellence. This should be completed by the end of the third quarter.
Turnover and Profits are likely to be less than the previouis period.
Communisis has also completed the sale and leaseback of its PDM Bath facility for net proceeds before tax of £14.3 million. The proceeds will be used to fund the exceptional costs of the Direct Mail reorganisation and to reduce bank debt. The lease term is for a period of 17 years with an initial annual rent of £1.0 million. The transaction will generate an exceptional profit before tax of £9.5 million.
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