4imprint Group

LN: FOUR

Market Cap£727m

Last Close 2590p

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.

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Investment summary

4imprint has announced that trading over the first four months of the year was stronger than anticipated. Both order volumes and average order values are up double digits over the same period in 2019, resulting in revenues up 27% on the pre-COVID comparison. The group is now back on track to reach its long-held FY22 target of $1bn revenue and we have upgraded our forecast accordingly. Our new forecasts show a more robust recovery in operating margin, despite the economic uncertainty and inflation impact. 4imprint is a high-quality business in a large and growing market, underpinned by marketing expertise and a strong balance sheet.

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 11.0 300.2 56.2
2021A 787.3 35.7 30.2 80.3 41.1 40.6
2022E 1000.0 59.3 53.5 144.8 22.8 15.3
2023E 1125.0 70.5 64.8 172.8 19.1 13.7
Industry outlook

4imprint’s progress is in some ways a proxy for confidence in the health of the US economy. The customer base is basically corporate North America, bar the largest organisations which handle their promotional goods requirements through (tighter margin) corporate contracts. The widespread shutdowns of FY20 led to a major commercial retrenchment within the economy, with confidence rebuilding through FY21. Any further restrictions are likely to be local rather than federal so the recovery should continue through FY22. The US promotional products distribution market is highly fragmented (ASI estimated its value in 2021 at US$23.2bn).

Last updated on 24/05/2022
Content on 4imprint Group
4imprint Group – Back on track for $1bn revenue
TMT | research Update | 9 May 2022
4imprint Group – Strong trading recovery
TMT | research Update | 16 March 2022
4imprint Group – Moving on up
TMT | research Outlook | 28 February 2022
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Share price graph
Balance sheet
Forecast net cash (US$m) 64.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.1) 0.0 (11.5)
Relative* (8.9) (2.7) (13.7)
52-week high/low 3170.0p/2440.0p
*% relative to local index
Key management
Kevin Lyons-Tarr CEO
David Seekings FD