Communisis (CMS)

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Leading provider of integrated marketing services.

4-Dec-2017 – 62p – £129.8m – PER 9.47

CFO Appointment And Trading Update – New CFO appointment seems orderly enough with the existing CFO assisting through Q1 2018. Trading expectations remain unchanged.

This looks OK so what’s holding it back? Perhaps the Net Debt at £28.5m (20%+ of Mkt Cap) and I believe a Pension Deficit circa £40m (30%+ of Mkt Cap). Those willing to accept the above would be investing in what looks like an OK company with a well covered modest Dividend (circa 4%). It’s StockRank is 98.

16-Jan-2018 – 69p – £144.5m – PER 10.5

Trading Update For The 12 Months To End December 2017 – An in-line update with Net Debtreduced to £24.3m (£30.4m last time). Pension deficit down significantly to circa £38m ( from £55.5m).

Nice to see the Net Debt and Pension Deficit down. I’m almost tempted here but will remain Neutral for now. Up almost 10% yesterday (on a massive increase in volume) suggests the insiders liked this update before we had a chance!

8-Mar-2018 – 64.2p – £134.6m – PER 9.78

Preliminary Results For The 12 Months To End December 2017 – Revenue up 4% to £375m (£361.9m last time), Adjusted PBT up 3% to £17.2m (£16.7m last time) and Adjusted EPS of 6.4p, up from 6.1p last time. The Final Dividend will be 1.77p, up 10%.

Looks OK but this growth rate does not inspire me enough to get interested at present.

10-May-2018 – 69p – £144.7m – PER 9.86

AGM Statement – Unchanged.

The growth here seems uninspiring, I remain Neutral.

2-Aug-2018 – 51p – £107.0m – PER 7.17

Interim Results For The 6 Months To End June 2018 – Reasonably positive, FY in-line and the Pension Deficit and Net Debt are both down about 25% and 15% respectively.

I remain uninspired by the growth here and remain Neutral for now.

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