4imprint Group

LN: FOUR

Market Cap£979m

Last Close 3485p

4imprint is the leading direct marketer of promotional products in the United States, Canada, the UK and Ireland. In FY21, 98% of revenues were generated in the United States and Canada.

More 4imprint Group content >

Investment summary

4imprint’s H122 results show the benefit of record levels of customer demand, with revenue up 58% year-on-year and operating profit rising from $3.6m in H121 to $44.0m in H122. July’s trading update had indicated FY22 revenue breaking through management’s long-held $1bn target, with a material uplift in operating profit to over $75m. With H122 revenue per marketing dollar at $8.19, up from $5.46 in H121, we have substantially raised our profit forecasts for FY22 and FY23 and now publish our first thoughts on FY24. The group continues to invest in its product and people as well as its marketing and generates significant amounts of cash, giving it an excellent opportunity to continue to build market share.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 560.0 8.9 3.8 11.0 361.2 67.6
2021A 787.3 35.7 30.2 80.3 49.5 48.9
2022E 1050.2 85.5 79.7 215.3 18.5 12.3
2023E 1161.0 96.1 90.2 243.4 16.3 11.8
Industry outlook

In some ways 4imprint’s trading reflects the health of the US economy. There will be increasing attention paid to the impact of inflation on customer budgets and the threat of recession, on top of ongoing concerns regarding stock availability and cost inflation for both stock and staff. However, these are factored into the numbers (as much as is sensible currently). The US promotional products distribution market is highly fragmented and ASI estimated its value in 2021 at US$23.2bn.

Last updated on 28/09/2022
Content on 4imprint Group
4imprint Group – Big gains in marketing productivity
TMT | research Update | 10 August 2022
4imprint Group – Back on track for $1bn revenue
TMT | research Update | 9 May 2022
4imprint Group – Strong trading recovery
TMT | research Update | 16 March 2022
View more
Register to receive research on 4imprint Group as it is published
Share price graph
Balance sheet
Forecast net cash (US$m) 79.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (8.4) 46.4 16.4
Relative* (2.3) 54.7 22.9
52-week high/low 4045.0p/2240.0p
*% relative to local index
Key management
Kevin Lyons-Tarr CEO
David Seekings FD