Communisis Share Discussion Threads

[dahhad] 19/11/2016 09:51

Hi Masurenguy, how do you interpret Innerworkings results in a CMS context? Thanks.

[masurenguy] 18/11/2016 08:17

Hmmm.....better than expected Q3 results from InnerWorkings !

"We have devoted considerable energy to developing our presence in the international markets and new service offerings over the last few years, and the benefits of these investments are becoming more apparent. With the strength of our global capabilities and rate of penetration with our existing accounts, I'm excited by our performance and the path I see ahead for InnerWorkings." Eric D. Belcher, CEO

"Our third quarter financial results demonstrate continued organic growth and further operating efficiency, particularly in our International segment. We are raising our financial performance expectations for 2016 as we continue to execute ahead of plan." Jeffrey P. Pritchett, CFO

[zho] 15/11/2016 08:50

Yes, indeed. Comment from Paul Scott yesterday:

"Bond yields seem to have been an even bigger mover than equities, rising strongly. I spoke to one UK company CEO last week, who told me that their pension deficit had shrunk by a quarter in just one month (October). So if we are now coming to the end of this bizarre era of ultra-low interest rates, then companies with big pension deficits could see a decent revival in their share prices perhaps?"

[clarksons1] 15/11/2016 02:10

UK 10 Year Gilt Yields have nearly tripled since the mid August low.

12 Aug - 0.51%
14 Nov - 1.46%

[masurenguy] 11/11/2016 08:43

I think that your description "The monstrosity of a liability that is Blundell" is both excessive and quite unwarranted. He has clearly been the main driving force leading the restructuring and repositioning of CMS over the past 7 years. I would agree that he has been remiss in not being more accommodating to PI shareholders and this is something that could and should be reviewed because it does not foster the right impression. Good IR in this context can also help sentiment, particularly with a main market small cap stock, which can have a beneficial impact on the share valuation over a period of time but ultimately it is good performance that will determine valuation.

The low valuation and shareprice is galling for all investors but the company has been making progress and I suspect that the legacy Pension Fund deficit is one of the main factors in this context. If the basis upon which PF surpluses/deficits is reviewed in due course this should have a more positive impact.

I share the general frustration that many investors have over the discontinuation of quarterly trading updates but many other companies have also recently followed this route since it became no longer mandatory for small companies to undertake this.

[junior21] 10/11/2016 20:33

Who knows, maybe Blundell cut the communication and presentations not because he failed to see the benefit of them (as he stated with regard to retail investors), but more so because he knew the story at that time wasn't particular great. Maybe now he's optimistic and has some good news to share.

[sphere25] 10/11/2016 10:57

The monstrosity of a liability that is Blundell finally realising he actually has to communicate with the owners of the business?

[zho] 09/11/2016 11:26

Through support. I hope Andy Blundell comes up with something good next week.

AGM announcement: At a General Meeting of the Company today, the Board's recommendation for a capital reduction was approved by an overwhelming majority of shareholders. Subject to the High Court and other necessary approvals, this result will enable the Company to increase its distributable reserves by approximately GBP22.5m and support future dividend payments.

[aim_trader] 08/11/2016 11:33

Andy Blundell, CEO of Communisis, will be presenting to investors on 17th November at the Capital Conference. For further details and to register to attend, please click here:

[sharw] 07/11/2016 01:26

This is one of the problems - the company has ditched trading statements. Everyone was waiting for the traditional AGM statement in May - particularly in view of the SIV profit warning but we got zilch - see:

[smartmoney100] 07/11/2016 00:05

With you there HH . Trading statement this month? Somehow I doubt it!

[hopeful holder] 06/11/2016 19:49

And for the record, I am a holder of . just over 3 years. I watched it quickly rise to the high of around 70 pence and then slip to today's lows. A sad state of affairs for what I see as a company who can still deliver.

[hopeful holder] 06/11/2016 19:45

A 3 year decline trend in the share price needs some serious effort to turn it around. The board need holding to account by the shareholders at the next AGM or before.

[masurenguy] 06/11/2016 10:06

Communisis Technology to Fight Digital Cheque Fraud

Communisis Plc has launched new technology to combat the increased risk of cheque fraud presented by the banking industry’s adoption of digital cheque clearing. Cheque fraud cost the UK banking sector £18.9m in 2015, according to Financial Fraud Action, a figure which could rise following the introduction of new regulations governing how cheques are cleared. Communisis’ e-UCN (Unique Coded Number) uses a complex algorithm to generate a unique code that is lasered onto customers’ cheques, ensuring that suspect cheques are automatically held for investigation. Although dates are yet to be formally published, from the end of 2017 member banks will be legally required to exchange digital images of cheques with one another, in addition to paper copies. The change, known as the Future Clearing Model, could leave banks vulnerable to increased cheque fraud as existing systems are often unable to detect counterfeiting and altered cheques from scanned images.

Communisis provides multi-channel customer communications and cheque printing solutions to the majority of the UK’s high street banks. Research from the Cheque and Credit Clearing Company shows that 38% of consumers and 55% of businesses in the UK still regularly use cheques as a method of payment with 558m processed annually. Tony Rice, Head of Relationship Management at Communisis, said: “The Future Clearing Model will deliver an enhanced customer experience by speeding up the clearing process, but it also brings new challenges. In the USA cheque imaging has been in place since 2004, leading to a 70% reduction in the cost of clearing cheques* but an increase in fraud due to the ability for counterfeit cheques to go unnoticed during the clearing process. According to C&CCC’s research the majority of cheque users will continue to write the same number of cheques as they do now once the digital clearing process is introduced. With legacy IT remaining a significant challenge in the banking sector, many UK institutions are not as well equipped as they could be to implement the Future Clearing model. Cheques continue to be a popular target for fraud and our technology is a unique, best-in-class solution that is Future Clearing Model-ready and complies with the industry’s leading SHA 256 cryptographic standard.”

Communisis is one of Europe’s leading providers of marketing, transactional, security and regulatory multi-channel communications for major brands across the financial services, energy and FMCG sectors.

[coxsmn] 06/11/2016 09:53

Communisis Plc, the leading customer communications group, has launched new technology to combat the increased risk of cheque fraud presented by the banking industry's adoption of digital cheque clearing.dyor.regards,coxsmn

[coxsmn] 05/11/2016 11:59

Profits weighted to second half of 2016 and forward 2017 p/e 5.6 with divi yield of 7.2% at current share price looks good.Will rerate once we get the next set of results and they turn out to be a lot better than the share price suggests.dyor.coxsmn

[shroder] 03/11/2016 16:34

Could be a few reasons, arguably CMS haven't moved quickly enough into digital.

Banks, in general under the cosh squeezing margins, print based products giving way to digital media.

Brexit concerns holding back client purchasing decisions, St Ives staged a good recovery but now slipping back.

..imho.

[dahhad] 03/11/2016 10:07

may need to raise and/or use cash to deal more quickly with the pension issue. share price seems to be getting really penalised for this deficit; why else would the share price be so low/ IMO

[catsneck2] 02/11/2016 23:07

CMS has plenty of cash, hence the debt repayments and juicy dividend.

[gary1966] 02/11/2016 19:51

Company is cash flow positive covering debt repayment, dividend and pension payments, why the need for a fund raise?

[ptgint] 02/11/2016 16:30

Agree the share price suggests something happening but surely a cash raising exercise would result in a fall in the share price not an increase ?

[isis] 02/11/2016 07:24

I wonder is the market anticipating some kind of cash raising exercise?

The share price suggests something may be afoot.

[123will] 30/10/2016 19:51

Given it is long term inflation expectations that need to change I would expect that they would not increase as fast as bond yields. Also, the impact of a 1% increase in inflation expectations does not have the same magnitude of impact on the deficit as a similar change in the interest rate assumption. Their impact is detailed in the annual report which seems to tally with the recent changes in bond yields and the resultant change in the deficit.

[gleach23] 28/10/2016 19:03

123Will - Paul Scott comments today along the same lines -

"My Twitter feed is filling up with comments and articles about bond yields rising. It strikes me that this could be good news for UK companies which have significant pension deficits. These deficits have swollen in recent years due to very low bond yields - because the liabilities are measured with reference to bond yields. Liabilities increase when bond yields reduce, and vice versa.

So it occurs to me that pension deficits may benefit from rising bond yields. Mind you, presumably there would be an offsetting effect from higher inflation - meaning that the annual inflationary rise for pension payments would increase the liability. I'm not sure how the 2 factors would combine. Do we have any actuaries in the house, who could comment on the situation?"

[shroder] 28/10/2016 09:30

Its a wonder his nickname isn't 'U' turn Carney,

Mark Carney admits to 'Carnage' nickname as he finally confesses Brexit gives the UK “very large” trading opportunities