Cross selling of products has helped Communisis beat expectations and record a 69% rise in turnover for the first half of the year.

Some customers in the financial services sector are now trading with four of our five divisions, said chief executive David Jones as he reported sales of 126m.

The groups return on sales and pre-tax profit were up on the same period last year, although comparisons were hard to make because of its aggressive acquisition and disposal strategy over the past 18 months.

Communisis, which was born from the John Mansfield Groups acquisitions of Waddington on 1 February 2000, then Rexams printing division three months later, reported pre-tax profits of 8.5m compared with 6.5m this time last year. Operating margins hit double figures at 10.4%.

Sales in the groups high margin e-commerce division rose 26% from the second half of last year, while its Brussels plant, Communisis two, goes live next month.

Communisis also posted a 9.3% rise in direct marketing and direct mail sales on the second half of 2000, despite lower prices and increased competition at the lower personalisation, less demanding end of the market, said Jones.

Sales of security products rose 2.6%, while return on sales hit 13.8%. Jones said this division had the strongest links with the groups key financial sector customers.

Jones also said outsourcing had become an attractive fit with the groups strategy as printed products migrate toward electronic format.

During the period Communisis closed its plant in Acton, London, and relocated its Shepton Mallett facility to Midsomer Norton.

Its UK labels business is working to develop litho and flexo colour cards initially for the European market, then the US.

Communisis share price rose over 5% to 149p on the news. But it still stands only 12p above its 52-week low and 69.5p below its 52-week high.

Story by Gordon Carson