Last close As at 05/08/2026
GBP48.90
▲ 500.00 (11.39%)
Market capitalisation
GBP1,378m
Research: TMT
4imprint’s FY23 results are as outlined in January’s trading update, with 16% top-line growth and a further step up in operating margin to 10.3% from 9.0%. Given that the trading backdrop became more difficult over the final few months, as shown in industry reports, this implies that the group continues to build share in its large and fragmented addressable market for promotional products. 4imprint ended the year with net cash and short-term deposits of $105m after particularly strong cash conversion in H2. This amply allows for the expansion project at the main Oshkosh distribution centre as well as a good uplift in the final dividend, making 215 cents for the year, with the shares trading at a yield of approximately 3%.
4imprint |
Continued market share gains |
FY23 results |
Media |
13 March 2024 |
Share price performance
Business description
Next event
Analysts
4imprint is a research client of Edison Investment Research Limited |
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4imprint’s FY23 results are as outlined in January’s trading update, with 16% top-line growth and a further step up in operating margin to 10.3% from 9.0%. Given that the trading backdrop became more difficult over the final few months, as shown in industry reports, this implies that the group continues to build share in its large and fragmented addressable market for promotional products. 4imprint ended the year with net cash and short-term deposits of $105m after particularly strong cash conversion in H2. This amply allows for the expansion project at the main Oshkosh distribution centre as well as a good uplift in the final dividend, making 215 cents for the year, with the shares trading at a yield of approximately 3%.
Year end |
Revenue |
PBT* |
EPS* |
DPS** |
P/E |
Yield |
12/21 |
787 |
30.2 |
80.3 |
45.0 |
92.8 |
0.6 |
12/22 |
1,140 |
103.7 |
285.6 |
160.0 |
26.2 |
2.1 |
12/23 |
1,327 |
140.7 |
377.9 |
215.0 |
19.8 |
2.9 |
12/24e |
1,430 |
146.5 |
395.2 |
225.0 |
18.9 |
3.0 |
12/25e |
1,500 |
153.8 |
408.7 |
232.5 |
18.3 |
3.1 |
Note: *PBT and EPS (fully diluted) are normalised, excluding amortisation of acquired intangibles and exceptional items. **Excluding special dividends.
Continued market outperformance
Industry body ASI estimates that the promotional products market was effectively flat in Q4, having slowed through H2, reflecting the more difficult economic backdrop. 4imprint’s stronger progress highlights how successful it continues to be in driving its revenue base from both existing (returning) customers, who generated 14% more orders year-on-year, and from newly recruited customers. Marketing spend is key to delivering these results and revenue per marketing dollar remained above $8. Spend on brand promotion continues to be an important part of the mix and 4imprint is adding streaming to its linear TV spend. Trading into the first couple of months of the new year has continued in line with our expectations so our FY24 and FY25 are unchanged, bar a slightly higher dividend.
Cash to fund expansion
With few M&A possibilities, cash utilisation priorities remain investment in growing the business and dividend payments to shareholders. $20m is earmarked for expanding the main Oshkosh facility from 300k ft² to 450k ft², including adding to the onsite solar array. This should be in operation by Q424. 4imprint is also scaling up its apparel decoration capacity, but overall maintenance capex requirements are modest, allowing for a generous payout policy.
Valuation: Supported by DCF valuation
The share price has continued to recover from the effect of earlier supply chain issues and is now up 27% year-to-date and up 41% over one year. A discounted cash flow (WACC of 9%, terminal growth of 3%, as before) generates an implied value of £60.31, from £61.15 at the time of our January update note when the USD/GBP rate was 1.266 (now 1.278), and still 3% ahead of the current price.
Exhibit 1: Financial summary
$000s |
2021 |
2022 |
2023 |
2024e |
2025e |
||
Year end 31 December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
PROFIT & LOSS |
|||||||
Revenue |
|
|
787,322 |
1,140,286 |
1,326,500 |
1,430,000 |
1,500,000 |
Cost of Sales |
(561,306) |
(818,670) |
(924,600) |
(996,710) |
(1,047,000) |
||
Gross Profit |
226,016 |
321,616 |
401,900 |
433,290 |
453,000 |
||
EBITDA |
|
|
35,660 |
108,428 |
142,600 |
149,900 |
157,000 |
Operating profit (before amort. and excepts.) |
|
30,646 |
102,902 |
136,200 |
143,000 |
150,000 |
|
Intangible Amortisation |
0 |
0 |
0 |
0 |
0 |
||
Exceptionals |
0 |
0 |
0 |
0 |
0 |
||
Operating Profit |
30,646 |
102,902 |
136,200 |
143,000 |
150,000 |
||
Net Interest |
(417) |
804 |
4,475 |
3,500 |
3,800 |
||
Profit Before Tax (norm) |
|
|
30,229 |
103,706 |
140,675 |
146,500 |
153,800 |
Profit Before Tax (IFRS) |
|
|
30,229 |
103,706 |
140,675 |
146,500 |
153,800 |
Tax |
(7,643) |
(23,563) |
(34,500) |
(36,625) |
(38,450) |
||
Profit After Tax (norm) |
22,586 |
80,143 |
106,174 |
109,875 |
115,350 |
||
Profit After Tax (IFRS) |
22,586 |
80,143 |
106,174 |
109,875 |
115,350 |
||
Discontinued businesses |
0 |
0 |
0 |
0 |
0 |
||
Net income (norm) |
|
|
22,586 |
80,143 |
106,259 |
111,340 |
115,350 |
Net income (IFRS) |
|
|
22,586 |
80,143 |
104,374 |
109,875 |
115,350 |
Average Number of Shares Outstanding (m) |
28.1 |
28.1 |
28.1 |
28.2 |
28.2 |
||
EPS - normalised fully diluted (c) |
|
|
80.3 |
285.6 |
377.9 |
395.2 |
408.7 |
EPS - (IFRS) (c) |
|
|
80.5 |
285.0 |
377.0 |
395.1 |
408.6 |
Dividend per share (c) |
45.0 |
160.0 |
215.0 |
225.0 |
232.5 |
||
Special dividend per share (c) |
0.0 |
200.0 |
0.0 |
0.0 |
(0.0) |
||
Gross Margin (%) |
28.7 |
28.2 |
30.3 |
30.3 |
30.2 |
||
EBITDA Margin (%) |
4.5 |
9.5 |
10.8 |
10.5 |
10.5 |
||
Operating Margin (before GW and except.) (%) |
3.9 |
9.0 |
10.3 |
10.0 |
10.0 |
||
BALANCE SHEET |
|||||||
Fixed Assets |
|
|
40,011 |
47,940 |
51,400 |
65,100 |
67,334 |
Intangible Assets |
0 |
1,010 |
1,010 |
1,010 |
1,010 |
||
Other intangible assets |
1,045 |
957 |
490 |
490 |
490 |
||
Tangible Assets |
24,667 |
29,255 |
34,700 |
49,900 |
52,900 |
||
Right of use assets |
11,725 |
13,103 |
11,400 |
9,900 |
9,900 |
||
Deferred tax assets |
600 |
2,381 |
3,800 |
3,800 |
3,034 |
||
Retirement benefit asset |
|
|
1,974 |
1,234 |
0 |
0 |
0 |
Current Assets |
|
|
127,771 |
192,353 |
186,900 |
215,566 |
272,299 |
Stocks |
20,559 |
18,090 |
13,600 |
14,954 |
15,373 |
||
Debtors |
63,589 |
87,511 |
68,400 |
75,212 |
76,527 |
||
Cash and short-term deposits |
41,589 |
86,752 |
104,500 |
125,000 |
180,000 |
||
Other |
2,034 |
0 |
400 |
400 |
400 |
||
Current Liabilities |
|
|
(73,027) |
(87,401) |
(91,280) |
(96,256) |
(98,813) |
Creditors |
(71,877) |
(85,966) |
(89,900) |
(94,976) |
(97,633) |
||
Short term borrowings |
0 |
0 |
0 |
0 |
0 |
||
Lease liabilities |
(1,150) |
(1,435) |
(1,380) |
(1,280) |
(1,180) |
||
Long Term Liabilities |
|
|
(11,789) |
(12,672) |
(12,520) |
(11,320) |
(10,078) |
Long term borrowings |
0 |
0 |
0 |
0 |
0 |
||
Lease liabilities |
(10,939) |
(12,315) |
(10,920) |
(9,720) |
(9,720) |
||
Other long term liabilities |
(850) |
(357) |
(1,600) |
(1,600) |
(358) |
||
Net Assets |
|
|
82,966 |
140,220 |
134,500 |
173,090 |
230,742 |
CASH FLOW |
|||||||
Operating Cash Flow |
|
|
22,846 |
101,317 |
166,900 |
135,554 |
162,889 |
Net Interest |
(409) |
699 |
3,900 |
3,500 |
3,800 |
||
Tax |
(6,414) |
(20,755) |
(33,800) |
(32,660) |
(35,950) |
||
Capex |
(3,465) |
(8,011) |
(9,700) |
(22,100) |
(10,000) |
||
Acquisitions/disposals |
0 |
(1,700) |
0 |
0 |
0 |
||
Pension contributions |
(4,589) |
(4,367) |
(6,500) |
0 |
0 |
||
Financing |
(843) |
(866) |
2,500 |
(900) |
(900) |
||
Dividends |
(4,134) |
(18,722) |
(110,800) |
(61,691) |
(64,283) |
||
Other/ Capital portion of lease repayments |
(1,117) |
(2,432) |
5,250 |
(1,200) |
(500) |
||
Net Cash Flow |
1,875 |
45,163 |
17,750 |
20,503 |
55,056 |
||
Opening net debt/(cash and short-term deposits) |
|
(39,766) |
(41,589) |
(86,752) |
(104,500) |
(125,000) |
|
Net impact of disposals etc |
0 |
0 |
0 |
0 |
0 |
||
Other |
(53) |
0 |
(2) |
(4) |
(56) |
||
Closing net debt/(cash and short-term deposits) |
|
(41,589) |
(86,752) |
(104,500) |
(125,000) |
(180,000) |
|
Source: Company accounts, Edison Investment Research
|
|
Research: Healthcare
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