Flat profits at Communisis

Communisis has said that difficult market conditions and the cost of European expansion have pegged first-half operating profit to last years figure of 8m.

In a pre-close trading statement, the print and print management group said that turnover in the first half would be "marginally over" the 131m figure posted for the first half of 2004, although operating profit will remain flat.

Major contract wins worth more than 25m with HBOS, the Department of Work and Pensions and Lloyds TSB will have a positive impact on full-year figures, the group said.

But for the first half, the cost of the European expansion of its print management arm offset the benefits of an increased turnover at the division.

Restructuring the transactional print arm earlier this year has increased profits, while "overcapacity and deflationary pricing" have remained a challenge to the print and direct mail division.

The firm's rebranding, first announced in March this year, has been completed.

Story by Josh Brooks