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Research: TMT
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.
4imprint |
Very strong demand |
FY22 results |
Media |
24 May 2023 |
Share price performance
Business description
Analysts
4imprint is a research client of Edison Investment Research Limited |
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.
Year |
Revenue |
PBT* |
EPS* |
DPS** |
P/E |
Yield |
12/21 |
787 |
30.2 |
80.3 |
45.0 |
61.1 |
0.9 |
12/22 |
1,140 |
103.7 |
285.0 |
160.0 |
17.2 |
3.3 |
12/23e |
1,275 |
110.7 |
294.8 |
165.0 |
16.6 |
3.4 |
12/24e |
1,410 |
127.4 |
343.8 |
190.0 |
14.3 |
3.9 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles and exceptional items. **Excluding special dividends.
4imprint was set for a good first quarter, given that its trading Q122 was still impacted by the ongoing effect of COVID-19 lockdowns on the United States’ economy, which is a beneficial impact that will recede over the rest of the year. Nevertheless, a 22% uplift in total order intake is undoubtedly strong, especially since there is likely to be some additional inflationary benefit in the revenue numbers. The industry figures are against stronger comparatives, as they included some personal protective equipment distribution.
The AGM statement indicates that management expects to deliver full year results in line with analysts’ forecasts, which is currently for revenue in a range of $1.25–1.30bn and for adjusted operating profit of $107.0–109.5m. Our full year estimates are for top-line growth of 12% to the mid-point of this range and, given the update, it seems sensible to retain this level for now, with the potential to revise post the interim figures scheduled for 9 August.
The previously announced special dividend of $2.00 per share is set to be paid in June alongside the FY22 final of $1.20.
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Research: Investment Companies
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