News

Communisis profit warning after government proposal

02 July 2009 16:20:00

Printing group Communisis said the UK government's proposal to ban the issue of unsolicited credit card cheque mailers will have an impact on profit.

"The board believes it would be prudent to expect this proposal, whilst not yet binding in law, to have an immediate effect on customer behaviour in this segment," said the group.

"Whilst representing a relatively small proportion of overall group revenue (FY08: £4.2m), the impact on profit is likely to be material due to the high operational gearing within this business," it added.

It said it is keen to focus on cost control right across the business and has already implemented measures to take cost out of this particular business segment.

"However, the benefits of any further cost measures would not be felt until the next financial year and it is therefore likely that any change in customer behaviour would have an impact on Group profitability in the current year," it added.

All data suppied by Digital Look (15 minute delay)




Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddesdon, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.