Sales were up 22% to 236m and operating profits up 44% to 26m for the year to 31 December 2001. Like-for-like comparisons were hard to make, however, because its 2000 results included only 11 months contribution from the retained businesses of Waddington and eight months from the former Rexam Printing Division.

But all divisions at least met Communisis 10% return on sales target. Its e-comms division improved its return from 24.9% to 27.5%, document services return rose from 7.6% to 10%, while security products went up from 11% to 17.3%.

Communisis chief executive David Jones was "slightly disappointed" with sales. "We expected another 4m or 5m, but direct mail was much tougher in the second half."

Pre-tax profit rose by over 50% to 24.9m, but goodwill amortisation and exceptional costs relating to restructuring cut the figure to 6.66m.

Communisis is going after long-term contracts to give it more security. Jones said it was looking to supply the full range of printed communications, although it might outsource printing of lower added-value products.

Direct marketing sales rose by 1.1m to 77.5m, with "fierce competition at the lower end of personalisation" damaging growth. "Our response was to walk away from business that did not meet our profit margin criteria," said Jones.

Communisis is merging two satellite plants in its document services division into its main Midsomer Norton plant.

The groups pension fund would be running at a 9m after-tax deficit due to the weakness of global equity markets under accounting standard FRS 17, which must be adopted by 2003.

Its share price was unchanged at 169p as PrintWeek went to press.

Story by Gordon Carson