Last close As at 05/08/2026
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▲ 110.00 (2.25%)
Market capitalisation
GBP1,378m
Research: TMT
4imprint’s trading update indicates no change to full year guidance and estimates, despite a challenging trading backdrop of wavering corporate confidence in an unstable economic and political environment. This has affected new customer acquisition more than it has affected transactions by existing customers, which is testament to the quality of the latter group. This in turn is a function of the group’s flexible marketing mix, including brand awareness. 4imprint had cash resources of $137m at end October (lease debt only) and has completed its programme to extend its main distribution centre, which should allow for a meaningful uplift in the dividend.
4imprint |
Good performance against a difficult backdrop |
Trading update |
Media |
12 November 2024 |
Share price performance
Business description
Analyst
4imprint is a research client of Edison Investment Research Limited |
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4imprint’s trading update indicates no change to full year guidance and estimates, despite a challenging trading backdrop of wavering corporate confidence in an unstable economic and political environment. This has affected new customer acquisition more than it has affected transactions by existing customers, which is testament to the quality of the latter group. This in turn is a function of the group’s flexible marketing mix, including brand awareness. 4imprint had cash resources of $137m at end October (lease debt only) and has completed its programme to extend its main distribution centre, which should allow for a meaningful uplift in the dividend.
Year end |
Revenue |
PBT* |
EPS* |
DPS** |
P/E |
Yield |
12/22 |
1,140 |
103.7 |
285.6 |
160.0 |
24.5 |
2.3 |
12/23 |
1,327 |
140.7 |
377.9 |
215.0 |
18.5 |
3.1 |
12/24e |
1,394 |
150.0 |
404.6 |
240.0 |
17.3 |
3.4 |
12/25e |
1,484 |
159.3 |
423.3 |
255.0 |
16.5 |
3.6 |
12/26e |
1,580 |
170.1 |
451.2 |
270.0 |
15.5 |
3.9 |
Note: *PBT and EPS (fully diluted) are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Excluding special dividends.
The combination of high interest rates, political uncertainty, inflation and extreme weather events has undermined confidence within 4imprint’s wide-ranging US corporate customer base. This has carried through from H124 and it is too early to say how many of the underlying issues may have been resolved post the elections.
Year-to-date (to end October) order count is up 2%, implying some modest further weakening since the half year in both new and existing customer ordering patterns. Nevertheless, 4imprint has held its gross margins for the 10 months to end October at around 32% (H124: 32.1%) and operating margins remain ‘in double digits’ (Edison’s full year forecast is for 10.3%). The end October cash figure of $137m is ahead of our year-end projection of $134m.
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Research: TMT
In the face of an advertising market that has not picked up in Q324, Team Internet’s core business has performed creditably. However, Shinez has significantly underperformed expectations and is unlikely to contribute materially to profits in our forecast period. Combined with a moderation in our forecasts for the core business, we now expect earnings to remain broadly flat in FY24 and FY25, which results in a 17.6% reduction to FY25e EPS. The FY25e P/E rating of 5.6x with a 20% free cash flow (FCF) yield looks overly discounted.