Shares in the Leeds-based print and print management plc were trading at 88.25p as PrintWeek closed on Tuesday (7 March). They jumped by 11% to 82.25p directly after the group revealed its results on 2 March, which reflected a "tough" 2005, but were ahead of some analysts' expectations.

At the same time, the group announced its intention to begin an initial 5m share buy-back programme, enabling it to purchase up to 15% of the company's shares. According to a spokesman the board believed the share price undervalued the business.

In the year to 31 December 2005, Communisis showed sales of 264.8m down 5m year on year while profit before exceptional items was more or less static at 15.1m (2004: 15.3m).

However, a restructuring charge of 7.9m, relating in part to the loss on the sale of Datadocs, meant the group turned in a post-exceptional pre-tax profit from continuing operations of 4.1m (2004: 6.2m). Profit attributable to equity shareholders was 2.6m, compared to a loss of 6.7m in 2004.

Chief executive David Jones said that, despite the tough trading conditions, the group was well positioned for growth.

Communisis' contracts with large financial institutions encompassed logistics and mailing as well as print, and the group would expand in these areas if the opportunities arose, he said.

The group signed a 250m 10-year deal with HSBC last year and took over the bank's statement printing operation as part of the contract.

It is building a new facility in Liverpool, due to open next year, which will have the capacity to handle work for two other banks, as well as HSBC.