£551.9m market cap
1965p last close
4imprint is the leading direct marketer of promotional products in the US, Canada, the UK and Ireland. 97% of 2017 revenues were generated in the US and Canada.
Investment summary
4imprint’s year-end update indicated another very strong performance, with FY18 revenues ahead 18% – all organic. PBT will be at the top end of the market range with net cash $2.5m ahead of our modelled number at $27.5m. Our forecasts will be formally reviewed with the prelims in March, but we note that management’s revenue goal of $1bn by FY22 now requires a CAGR of 7.9% over the intervening period, well below historical levels. The brand awareness programme implemented in FY18 has clearly helped stimulate growth and the group is accelerating investment in support. The organic growth record, high cash conversion and cash-rich balance sheet all support the current rating, with further upside potential.
Y/E Dec |
Revenue (US$m) |
EBITDA (US$m) |
PBT (US$m) |
EPS (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2016A | 558.2 | 40.8 | 38.4 | 98.7 | 25.7 | 15.2 |
| 2017A | 627.5 | 45.1 | 42.5 | 107.7 | 23.5 | 15.9 |
| 2018E | 725.0 | 48.2 | 45.1 | 126.9 | 20.0 | 15.4 |
| 2019E | 797.5 | 55.4 | 52.3 | 146.1 | 17.3 | 13.0 |
| Last updated on 21/02/2019 | ||||||
Industry outlook
The PPAI, an industry body, estimates the value of the US promotional products distribution market at US$25bn. 4imprint is the largest distributor in this large and diverse market, yet has market share of less than 3%. The market is reportedly growing at around 5% for FY18 and 4imprint has consistently grown faster than the market, building share through its reputation for quality, reliability and customer service. There are no direct comparators, as the other larger players have differentiated business models.
Last updated on 21/02/2019
Sector |
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| TMT |
Share price graph
Balance sheet |
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|---|---|
| Forecast net cash (US$m) | 25 |
| Forecast gearing ratio (%) | N/A |
Price performance
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1m |
3m |
12m |
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Key management |
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|---|---|
| Kevin Lyons-Tarr | CEO |
| David Seekings | FD |
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