Communisis confirms HP T-series order as LBG contract commences
Wednesday, November 6, 2013
Communisis has installed the first of two new HP T400 presses at the former Lloyds Banking Group print site in Copley following the official start of the 10-year outsourcing contract on 1 October 2013.
An HP T300 will be installed next at Copley, in December, followed by the second T400 in March 2014, at which point the site will replicate the HP T-series setup at Communisis' main transactional print site in Speke, Liverpool.
Communisis announced the triple installation in an Interim Management Statement published this morning (6 November), in which it said trading was in-line with expectations and listed the Lloyds contract win, Editions Financial acquisition and £60m debt refinance amongst its third-quarter highlights.
Communisis hailed the high-speed digital investment, which it said would "enhance the group's competitive advantage as the largest transactional operator in Europe" of HP's T-series platform.
The company said that the Lloyds outsourcing contract had been ratified by the LBG board and was "operating as intended" after successfully going live on 1 October. The Lloyds deal represents Communisis' second major win of the year after a nine-year contract was signed with Nationwide in January.
Communisis' legacy cheque printing business was said to be suffering from the "continued erosion of volume", leading the company to state that managing this trend and the opportunities arising from growth in outsourcing were its key priorities.
"Continuing to win substantial, multi-year contracts and generating additional revenues from expanded service offerings [is an] essential part of our long-term growth strategy," the company added.
Communisis' £60m debt refinance includes an increased £55m revolving credit facility, committed until March 2018, and a £5m overdraft, renewable annually; the firm's banking syndicate includes RBS, Lloyds TSB, HSBC and Barclays.
Communisis chief executive Andy Blundell said the company was continuing to "deliver successfully on its strategy for profitable growth".
Communisis share price was unchanged at 63p.