Operating profit at the £208m-turnover marketing services provider went from £7.9m in 2010 to £9.4m last year, excluding exceptional items of £4.3m (2010: £309,000) relating principally to the costs of Communisis' phased restructuring programme.

Communisis chief executive Andy Blundell said: "Our 2011 operating results before exceptional items showed a marked improvement on 2010 and signalled the group's continued success in executing its strategy as a leading UK marketing services provider."

However, the impact of the £3.9m cash cost of the exceptional items was felt in Communisis' pre-tax result, which fell 14.3% to £4.2m (2010: £4.9m), while an £8.9m actuarial loss on the group's defined benefit pension plans resulted in a net loss of £2.8m for the year.

The pensions loss recorded in the balance sheet was the result of the latest triennial valuation of the pension scheme, which saw the deficit more than doubled from £17m to £38.3m due to factors such as the record low yields on the government gilts.

This has resulted in a £3m increase in Communisis' annual contributions; however, the group has come up with an innovative way of managing the potential cashflow impact of this hike via the securitisation of the rental stream on one of its freehold properties, the proceeds of which will be used to effectively pre-pay the increased contributions over the three-year period between now and the next triennial valuation.

Paul Jones, an analyst with Panmure Gordon, said: "In cash terms it means the £3m that it would have cost them through the cashflow every year, will only costs them £1m, plus they get a huge tax benefit and it addresses £10m of the hole in the pension fund, because you can securitise this revenue for such a long period of time.

"Certainly on a three-year view it goes a long way towards solving a big element of a problem, which is the deficit, and it doesn't cost them as much. In three years time the deficit could be even higher or it could be a surplus – it changes so fast that every three years you're left trying to pin it down."

Jones added that the company's shares were looking increasingly attractive to investors, opening up the possibility for future acquisitions to be financed through a combination of equity or debt, something Communisis has said it will review on a case-by-case basis.

"They've made a number of bolt-on acquisitions like Orchestra Bristol, but at some stage something of considerable size will crop up that would make a significant improvement to the bottom line for Communisis," said Jones.

"The appetite for Communisis shares is growing considerably and on that basis it would be foolish not to consider issuing equity if there is a market for it. The City generally likes a combination of equity and debt on a significant deal."

He added that there was "a better than average case for people investing in Communisis" and said that investors were "significantly more interested than they were six months ago".

Commenting on the Orchestra purchase, which saw Communisis pick up the BBC TV Licencing contract, Jones said that it had turned into a very successful deal for the company.

"The way they bought it via pre-pack meant they were taking it on a bit of a flyer - they didn't have much time for due diligence," he added. "But the fact you can fold into another operation means the drop through to bottom line is much more beneficial than if you were just trying to run the same site more efficiently."

See also: Communisis installs twin T400s at Speke in £10m investment