LONDON (ShareCast) - Printing group Communisis (LSE: CMS.L - news) said the UK government's proposal to ban the issue of unsolicited
credit card cheque mailers will have an impact on profit.
"The board believes it would be prudent to expect this proposal, whilst not yet binding in law, to have an immediate effect on customer behaviour in this segment," said the group.
"Whilst representing a relatively small proportion of overall group revenue (FY08: £4.2m), the impact on profit is likely to be material due to the high operational gearing within this business," it added.
It said it is keen to focus on cost control right across the business and has already implemented measures to take cost out of this particular business segment.
"However, the benefits of any further cost measures would not be felt until the next financial year and it is therefore likely that any change in customer behaviour would have an impact on Group profitability in the current year," it added.
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