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Currency in GBP
Last close As at 28/03/2023
GBP50.10
▲ 80.00 (1.62%)
Market capitalisation
GBP1,430m
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 value in 2022 at over US$25bn, up 13% on the year, we;; ahead of the increase in GDP of 2.9%. While there will be a continuing impact in FY23 from inflation on customer budgets, and ongoing concerns regarding stock availability and cost inflation for both stock and staff, the overall prospects for the sector remain positive.
Director, TMT
David Seekings
FD
Kevin Lyons-Tarr
CEO
Forecast net cash (US$m)
49.3
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 12.2 | 11.8 | 73.4 |
| Relative | 19.4 | 12.2 | 77.4 |
| 52 week high/low | 5090.0p/2240.0p |
4imprint’s FY22 results are impressive, with 45% organic revenue growth and an uplift in operating margin to 9.0% (FY21: 3.9%) despite some gross margin pressure from inflation. Much of this is due to the step-change in marketing efficiency via investment in the 4imprint brand, which has delivered large numbers of new customers and higher order counts. The group is inherently highly cash generative, and we already assumed that a special dividend was likely. This is now confirmed, at twice the level we anticipated, at $2/share. The pace of growth will likely moderate this year and there will need to be some investment to cater for the larger volumes, but momentum remains good, and our forecasts are edged ahead.
| Y/E Dec | Revenue (US$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 | 75.5 | 74.5 |
| 2022A | 1140.3 | 108.4 | 103.7 | 285.0 | 21.3 | 16.8 |
| 2023E | 1275.0 | 115.2 | 110.7 | 294.8 | 20.6 | 16.7 |
| 2024E | 1410.0 | 132.2 | 127.4 | 343.8 | 17.6 | 15.0 |
