The Leeds-based print and print management group announced that a new "centre of excellence" would come on-stream in the first quarter of 2007 in anticipation of a "healthy growth" in statementing.

The announcement came at the same time as the group confirmed long-standing rumours that it had won an outsourcing contract with HSBC, estimated to be worth 250m over 10 years.

Communisis will take on 255 HSBC staff under the terms of the contract, 174 of which are permanent and 81 are temporary. It will pay 3m to acquire the assets to be transferred, which is expected to take place in January 2006. This business will form part of the group's Transactional Print Services division.

It has also secured a 60m five-year deal for direct mail and security print products for HBOS. "These relationships are unrivalled in our industry and underpin Communisis' strategy for growth," said chief executive David Jones.

Despite the good news on the contract front, Communisis has reported tougher than expected trading during the summer months and has said that it does not expect trading in the fourth quarter to make up for a particularly slow July and August.

In the six months to June 2005 the group showed adjusted profits from operations up 8% at 8.1m (2004: 7.5m), but restructuring costs relating to the sale of its European forms business (Datadocs) in May took this figure down to 2m.

Sales, aided by the contribution from Newcastle-based print manager Dataform, which Communisis acquired a year ago, were up 3% at 134.9m.

Interims 2005 (2004)
Sales: 134.9m (131.6m)
Profit from operations: 8.1m (7.5m)
Profit from operations (after restructure charges): 2m (2.4m)
Pre-tax profits: 0.44m (1.41m)

Story by Lauretta Roberts