4imprint is the leading direct marketer of promotional products in the United States, Canada, the UK and Ireland. In FY22, 98% of revenues were generated in the United States and Canada.
The US promotional products distribution market is highly fragmented and PPAI estimated its 2022 value at over US$25bn, up 13% on the year, well ahead of the GDP increase of 2.9%. Q123 growth has moderated to +3.3%, which will include some price inflation, so underlying volume growth is likely limited. There will be a continuing impact in FY23 from inflation on customer budgets, and some ongoing concerns regarding stock availability and cost inflation for both stock and staff, but the utility of promotional products is high and sector prospects remain positive.
David Seekings
FD
Kevin Lyons-Tarr
CEO
Forecast net cash (US$m)
49.3
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 16.7 | 10.5 | 90.1 |
Relative | 19.3 | 15.2 | 92.1 |
52 week high/low | 5090.0p/2240.0p |
4imprint’s AGM statement indicates that the group has had a very strong start to the year, with order intake 22% ahead of the equivalent period in FY22. Given the degree of macroeconomic uncertainty and the comparatives getting tougher as the year progresses, management is indicating that full year results will be within the range of current market forecasts. This level of growth is well ahead of the market, which industry body ASI estimates at +3.3% by value in Q123, indicating that 4imprint is continuing to build market share. The group is inherently highly cash generative, and management declared a special dividend of $2/share to be paid alongside the FY22 final in June.
Y/E Dec | Revenue (US$m) | EBITDA (US$m) | PBT (US$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 787.3 | 35.7 | 30.2 | 80.3 | 77.9 | 77.0 |
2022A | 1140.3 | 108.4 | 103.7 | 285.0 | 22.0 | 17.4 |
2023E | 1275.0 | 115.2 | 110.7 | 294.8 | 21.2 | 17.3 |
2024E | 1410.0 | 132.2 | 127.4 | 343.8 | 18.2 | 15.5 |
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