‘Tis indeed a funny old world. Just last week I was musing about how the unfortunate events at Bezier could be a potential hindrance for anyone looking to raise a serious amount of money for a print-related venture. The very same day, Communisis announced it planned to raise £20m with a new share placement. A very different business, of course, and a very different proposition. This isn't printing, it's "designing, producing and deploying". And one that investors have bought in to, judging by the fact that the share placement offer has been over-subscribed. At the time of typing Communisis shares were up at 48p (52 week high: 50.5p), and the group had a market cap of £67.35m. That £20m equates to circa 30% of the entire group’s current value, which is quite a peppy amount in the scheme of things. So, well done Communisis. Assuming all of this is approved at the group’s general meeting on 5 March, we now wait to see what, once expenses are paid, the remaining £18.9m will be used for. The lion’s share is earmarked for two things: £11.5m for acquisitions and working capital, and £6m for the cost of migrating major contract wins. There are hints about international expansion, and the addition of further buys in the creative and social meeja spheres. I'm told the group has "big plans". Things look pretty peachy for the Speke transactional printing supersite, which is where these new contracts are headed. The next interesting thing will be what all of this means for the legacy direct mail business at Leeds.
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"Well done all involved... great to see the investment to increase the productivity in the same footprint- much more sustainable than popping another one up."
"From 1949 until the late 2000s Remploy had a network of government-subsidised factories that offered employment specifically to disabled people, originally often war veterans or victims of industrial..."
"Does appear an odd decision as with that level of shareholder funds they would be liable for the staff redundancy and cover the insolvency costs. It’s not like they could take the money and dodge..."
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