Deal proves Communisis milestone

The contract, worth an estimated 30m or 15 per cent of Communisis' group revenues, is a significant milestone for the Leeds-based group as Barclays is its biggest customer. The renewal extends Communisis' contract with Barclays, which started in 2002, to December 2015.

Communisis will provide Barclays with a range of marketing services, print and print management.

Andy Blundell, chief executive of Communisis said: "This is a significant contract renewal for us and we look forward to continuing our work with Barclays, offering innovative solutions which add value.

"The strength and longevity of our working relationship with the bank demonstrates the continued attractiveness of our broad service offering and our ability to deliver competitively priced and integrated solutions."

Analyst Derek Terrington at Equity Development said the renewal was a major achievement for Communisis.

"In this industry it is unusual for a major contract to be renewed by one firm over three successive terms. It has key implications for the group's future, in that it vindicates the strategy of building a data-driven marketing services business."

Michael Parkinson, at Brewin Dolphin, said: "This contract award demonstrates tangible evidence that management's strategy is working. The contract terms are broadly the same but there is an increasing amount of contract value being directed towards higher margin and more predictable income."