The Illuminator – March 2024

We explored the inner workings of the Illuminator to review the fund’s top 10 holdings, which read like a ‘who’s who’ of Britain’s brightest companies.

This month we profile Edison client 4imprint Group (to read the latest outlook note by Fiona Orford-Williams here, or visit the Edison webpage here):

4imprint’s January trading update indicated strong growth in FY23, with revenue up 16% to $1.33bn, well ahead of the North American market. The company also beat previous PBT guidance, expecting it to come in ‘not below $140m’. With 98% of revenues generated in the US, 4imprint is particularly exposed to the health of the North American economy and specifically corporate entities.

4imprint’s core competency is in its marketing prowess and it has a market leading position within its industry. The company places great importance on both customer and supplier relationships, ensuring ethical standards within its supply chain and sourcing are high. 4imprint endeavours to be a favoured customer through good communication and prompt payments. With supply chain issues coming to the fore for many companies, this approach has stood 4imprint in strong stead in recent years.

The business is highly cash generative and finished FY23 with a net cash position of $105m. This enables reinvestment in the business and dividend payments to shareholders, with Edison forecasting a payout ratio of 53% for FY24.