reports
- Fiona Orford-Williams
4imprint Group - Continued market share gains
4imprint’s FY23 results are as outlined in January’s trading update, with 16% top-line growth and a further step up in operating margin to 10.3% from 9.0%. Given that the trading backdrop became more difficult over the final few months, as shown in industry reports, this implies that the group continues to build share in its large and fragmented addressable market for promotional products. 4imprint ended the year with net cash and short-term deposits of $105m after particularly strong cash conve...
- Fiona Orford-Williams
4imprint Group - FY23 finishes strongly
4imprint’s year-end trading update indicates that 2023 was a strong year for the group’s financial performance. Revenue of $1.33bn is in line with guidance reiterated in November of ‘slightly above $1.3bn’, but PBT is now guided at ‘not below $140m’, above our previous expectation of $131m. We attribute the stronger profitability to a combination of higher gross margin and marketing efficiency. Strong cash performance resulted in the year-end balance of $105m exceeding our prior $84m estimate. O...
- Fiona Orford-Williams
4imprint Group - Further progress in Q323
4imprint’s Q323 trading update indicated further good growth, albeit moderating against comparatives getting tougher as the year progresses. Full year revenue guidance is maintained at ‘slightly above’ $1.3bn, with continuing high returns on marketing spend prompting a $5m uplift in PBT guidance to ‘not less than $130m’. 4imprint’s underlying markets reflect US corporate economic health, with any downside mitigated by the prospect of carrying on building market share as less well-funded firms st...
- Fiona Orford-Williams
4imprint Group - Record H123 customer demand
4imprint’s interim results reflect the narrative at last week’s trading update, being strong underlying demand, an uptick in gross margin as the supply chain bottlenecks ease and strong returns on each dollar of marketing spend. Having upgraded following the update, we have now ‘tidied up’ our modelling for FY23 and FY24. With the buy-in of the legacy defined benefit pension and the accelerated recovery contributions, plus payment of the special dividend, we expect 4imprint to end FY23 with net ...
- Fiona Orford-Williams
4imprint Group - Strong order intake and upgrades
Ahead of 4imprint’s interim results, scheduled for 9 August, the company has issued a half-year trading update indicating performance running well ahead of market expectations for the full year. This is in terms of volumes, gross margin, profitability and cash. The May AGM statement had also been very positive, but there was greater uncertainty at that time whether the buoyant conditions would persist and we held our forecasts. We have now lifted our revenue and earnings estimates for FY23 and F...
- Liberum Research Team
- Liberum Research Team
- Fiona Orford-Williams
4imprint Group - Very strong demand
4imprint’s AGM statement indicates that the group has had a very strong start to the year, with order intake 22% ahead of the equivalent period in FY22. Given the degree of macroeconomic uncertainty and the comparatives getting tougher as the year progresses, management is indicating that full year results will be within the range of current market forecasts. This level of growth is well ahead of the market, which industry body ASI estimates at +3.3% by value in Q123, indicating that 4imprint is...
- Liberum Research Team
- Liberum Research Team
- Alex O’Hanlon
- Joe Brent
LIBERUM: 4imprint Group* - 1% increase in marketing costs and 45% reve...
The FY 22 results were strong and a special DPS of 200c was announced. We make five key points: 1) A 1% increase in marketing costs delivered 45% revenue growth in FY 22; 2) 4imprint improved its market share to c. 4.4% in 2022 vs c. 3.3% in 2019, indicating it has strengthened its market position; 3) US recession risk remains elevated but can be absorbed by the underlying business; 4) Management has demonstrated its willingness to return excess cash to shareholders through the special dividend ...
- Fiona Orford-Williams
4imprint Group - Brand investment turbocharges growth
4imprint’s FY22 results are impressive, with 45% organic revenue growth and an uplift in operating margin to 9.0% (FY21: 3.9%) despite some gross margin pressure from inflation. Much of this is due to the step-change in marketing efficiency via investment in the 4imprint brand, which has delivered large numbers of new customers and higher order counts. The group is inherently highly cash generative, and we already assumed that a special dividend was likely. This is now confirmed, at twice the le...
- Liberum Research Team
- Liberum Research Team
- Alex O’Hanlon
- Joe Brent
LIBERUM: 4imprint Group* - 1% increase in marketing costs and 45% reve...
FY 22 FD EPS increased 255%, slightly ahead of expectations. Total DPS of 360c, including a 200c special dividend in FY 22. Net cash ex leases increased from $79m at Q3 22 to $87m at FY 22 and the remaining pension contributions are sufficient to fully fund a proposed buy-out. The risk of US recession in FY 23 remains elevated, but can be absorbed given the underlying momentum. Given the momentum in FY 23 and despite our assumption of a shallow recession in the US, we increase our FY 23 and FY 2...
- Liberum Research Team
- Liberum Research Team
- Fiona Orford-Williams
4imprint Group - Strong finish to FY22 prompts further upgrade
4imprint’s update shows the group continuing to trade strongly through Q422 and we again upgrade estimates. FY22 revenue will be $1.14bn, or 3% ahead of our earlier modelling, and 45% ahead of the prior year. An 8.8% adjusted operating margin compares with our earlier assumption of 8.2%. We edge our revenue forecasts up by 3% for FY23 and FY24, but assume some modest settling back in margin to reflect additional operating costs to support the increased scale of the business. As before, we sugges...
- Liberum Research Team
- Liberum Research Team
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