4imprint Group

LN: FOUR

£522.4m market cap

1860p last close

4imprint is the leading direct marketer of promotional products in the US, Canada, the UK and Ireland. In FY18, 97% of revenues were generated in the US and Canada.

Investment summary

4imprint has updated the market for the current impact of COVID-19 on its business, which has changed markedly in the last few days. When we reported on the FY19 results on 3 March, order intake was up 13% y-o-y. Since 10 March, the disruption to the US economy has started to take hold and order levels have dropped significantly. The extent and duration of this phase is uncertain, and we have therefore withdrawn our forecasts for now. The group has a high degree of control over its variable costs in marketing spend and an exceptionally strong balance sheet, with cash of $51m at the end of February and no debt.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 738.4 48.5 46.1 129.4 18.0 14.3
2019A 860.8 59.2 55.6 153.9 15.1 11.1
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

Industry body PPAI estimates the value of the US promotional products distribution market at US$23bn. 4imprint is the largest distributor in this large and diverse market, yet has market share of around 3%. Q319 sales for the market were up 4.3%, slightly down on the +5.4% reported for Q219 and the 4.9% for FY18. Having tackled the potential threat from US-China tariffs effectively, the industry may now have to cope with product shortages and delays from the impact of the coronavirus through category management and alternative sourcing.

Last updated on 26/03/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (US$m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (39.4) (45) (19.8)
Relative* (25.2) (26.6) (0.8)
52-week high/low 3500.0p/1320.0p
*% relative to local index
Key management
Kevin Lyons-Tarr CEO
David Seekings FD

Content on 4imprint Group