4imprint Group

LN: FOUR

Market Cap£833m

Last Close 2965p

4imprint is the leading direct marketer of promotional products in the United States, Canada, the UK and Ireland. In FY20, 98% of revenues were generated in the United States and Canada.

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Investment summary

4imprint’s interim results showed a strong pick-up in demand from both existing and new customers. Management’s decisions taken early in the onset of the pandemic to retain the staff base and maintain a market presence through advertising have put the group in a strong position to capitalise on the rebound in the US economy. A return to paying dividends is a clear indication of confidence and we increased our revenue forecasts for FY21 and FY22 by 11% in both years. The step-up in projections at an earnings level are lower, given the higher US tax charges. 4imprint’s balance sheet remains strong, with end-June net cash of $53m.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2019A 860.8 59.1 55.6 157.2 25.8 20.2
2020A 560.0 8.4 5.0 13.8 293.6 154.9
2021E 775.0 26.6 22.6 62.6 64.7 45.4
2022E 850.0 36.1 32.0 88.6 45.7 37.1
Industry outlook

The Advertising Specialty Institute (ASI), an industry body, estimated the value of the US promotional products distribution market in 2020 at US$20.7bn, down 20% on prior year, after an extended period of growth at a 10-year CAGR of 5.0%. However, the FY20 figure includes US$6bn of PPE sales, without which sales would have fallen by 43% year-on-year. 4imprint has dipped from the top of table but had negligible PPE sales.

Last updated on 20/10/2021
Content on 4imprint Group
4imprint Group – Robust demand recovery
TMT | Update | 11 August 2021
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Share price graph
Balance sheet
Forecast net cash (US$m) 45.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.1) 18.1 44.6
Relative* (6.2) 12.8 16.4
52-week high/low 3170.0p/2050.0p
*% relative to local index
Key management
Kevin Lyons-Tarr CEO
David Seekings FD