Communisis Share Discussion Threads

[rhubarbcrumble] 02/9/2016 09:29

I am a long term holder of CMS.

I agree that the pension deficit, exacerbated by the reduction in interset rates,is a worry.

I can only suppose that this is the main reason for the poorly performing share price, although the acquisition strategy has not helped.

It would be helpful Masurenguy if you were able to update the largest holders shown above.

[masurenguy] 02/9/2016 08:57

Well it is an issue for every company that has an existing pension deficit although the impact that the fall in gilt yields will have obviously varies with each organisation. It is probably one of the factors that is affecting the current share price when you consider that it is based upon a very low PER of circa 6.5 and a projected yield of over 6%.

In last years results, issued on/3/3/16, they made the following reference to the pension deficit. "Cash contributions to the Pension Scheme are determined by reference to the triennial actuarial valuation, the latest of which was performed as at 31 March 2014, where the deficit reduced to £19.5m (2011 £38m). Contributions to the Scheme have now been agreed at £1.5m for the next eight years (subject to re-assessment following future triennial valuations), increasing in line with the progressive dividend, in addition to the previously agreed rental payments through the Central Asset Reserve arrangement."

[zho] 02/9/2016 08:29

Interesting article on pension deficits at

The article mentions that Carclo responded to the post referendum drop in gilt yields by cancelling a dividend due in October, causing the share price to drop by 15%.

According to a July article by Phil Oakley at , Carclo had a pension deficit equal to 23% of its market capital, compared to 56% for Communsis.

Apologies for being gloomy.

[rhubarbcrumble] 01/9/2016 15:43

I have increased my holding, but the chart looks diabolical.

Let's hope that you are right Hopeful Holder.

[hopeful holder] 27/8/2016 21:50

So hopefully it's time they turned around!

[sharw] 26/8/2016 17:47

IC has a stock screen today which finds "Six high-yielding free-cash-flow kings" including CMS. The only snag is that last year's selection returned -2%compared to +18% for the Allshare index!

[hopeful holder] 26/8/2016 17:07

Debt still a bit high for me but I'm happy they are bringing it down at a steady rate

[speedsgh] 26/8/2016 14:35

Would appointing a new (or joint) broker help? Are Liberum doing a good job?

[edmundshaw] 26/8/2016 14:24

This share is frustrating. Not sure what kick the market needs to notice the extreme value here...

[hopeful holder] 26/8/2016 07:51

Dividend up 10%.From page 3..Communisis has grown profitability, sustained strong cash generation,further reduced net debt and increased the dividend. Trading in ourmain markets has been good and we have won significant new,long-term contracts. A simplified two divisional structure addressesour main client opportunities and reduces cost. We remain confidentof delivering on our full year expectations for the Group."

[masurenguy] 23/8/2016 14:39

Despite a modest uplift after the interims were released a couple of weeks ago, the shareprice remains in the doldrums. The current price puts CMS on a PER of circa 6.5, with a potential yield of 6.3%, based upon next years forecast. At this undervalued level they could start to attract the potential interest of a predator. One potential candidate in this context could be NASDAQ quoted InnerWorkings (INWK), who currently have sales of $1.03bn and a PER of circa 19.

Their business model can be summarised as follows: "We offer a full range of solutions to support the marketing execution needs of our clients. Our outsourced print management solution encompasses the design, sourcing and delivery of printed marketing materials such as direct mail, in-store signage and marketing collateral. We provide a similar outsourced solution for the design, sourcing, and delivery of other categories in the marketing supply chain, such as branded merchandise and product packaging. We also assist clients with the management of events and promotions spending and related procurement needs. Our retail environments solution involves the design, sourcing, and installation of point of sale displays, permanent retail fixtures, and overall store design. We also offer on-site outsourced creative studio services, as well as on-demand creative services. We offer comprehensive fulfilment and logistics services, such as kitting and assembly inventory management and pre-sorting postage. These services are often essential to the completion of the finished product. For example, we assemble multi-level direct mailings, insurance benefits packages and coupons and promotional incentives that are included with credit card and bank statements. We also provide creative services, including copywriting, graphics and website design, identity work, marketing collateral development and pre-media services, such as image and print-ready page processing and proofing capabilities."



The potential synergies between INWK and CMS are clearly evident and currently they are competitors within the European and Middle Eastern markets, in certain service sectors, which account for circa 23% of INWK's total sales. Interesting times !

[nick rubens] 23/8/2016 11:05

cheers coxsmn

Have NPT. Will take a look at PAF, ALY, and HGM.

CMS looks like a buy opp coming after todays sellers have done.

[coxsmn] 13/8/2016 08:09

Nick Rubens,Other low p/e, high yield stocks,hgm, paf, aly, nptDyor as always.

[speedsgh] 10/8/2016 23:11

Liberum are company broker to CMS so bound to be more bullish than consensus.

[joe say] 09/8/2016 09:38

Re:TMMG - the first half basic EPS last year was 1.6p

The recent RNS said double digit growth in the H1 Revenue and profits for this H1 - thus you'd expect this to be reflected in the EPS number

However, even if the EPS remained at 1.6p and that was all that was achieved in H2 the full year P/E ratio would only be 10-11 at a 35p share price

Putting these all together suggests way under that (ie higher EPS/lower PE ratio)

Ergo buy imho

[qs99] 09/8/2016 08:52

Hi. Be careful re tmmg, very H2 weighted Imo from reading rns, CMS containing strong run, holding on for 50p + ....

[nick rubens] 09/8/2016 08:16

Thanks red_shed I'll take a look at TMMG.

Meanwhile I note that CMS mm's seemingly need stock today and I expect it will be difficult to buy in size for institutional holders at these levels and this one must be on there 'add list' if they are on the ball in those offices running the smaller company and recovery funds.

[red_shed2000] 08/8/2016 14:53

Nick...Mission Marketing (TMMG). A stock market anomaly and mega frustrating.

DYOR!

[nick rubens] 08/8/2016 14:15

This should move up steadily ahead of full year results in around 6 months time. An easy buy and hold IMO.

If anyone knows of any similar value, high yield, smaller companies with growing profits forecast and low PE ratios, then please let me know. cheers NR

[isis] 08/8/2016 14:11

With that size of holding I would expect him to have communication with the Company and a pretty good idea of where they're going.

[rivaldo] 08/8/2016 13:41

Quite an increase in just less than a month, and quite a commitment. Griffiths is usually pretty successful and is a ruthless kinda guy.

[masurenguy] 08/8/2016 12:35

Richard Griffiths has added a futher 2.6m shares and increased his stake in the company to 16.5%.

[rivaldo] 08/8/2016 10:45

Good volumes too, with 1.45m traded already and a load of AT (institutional?) buying.

[mobtheplod] 08/8/2016 09:57

That's me in for some more, a bit of a no brainer - true value IMHO. I wonder what Simon Thomson thinks now after losing patience with them?