Currency in GBP
Last close As at 06/02/2023
▲ 40.00 (0.89%)
4imprint is the leading direct marketer of promotional products in the United States, Canada, the UK and Ireland. In FY21, 98% of revenues were generated in the United States and Canada.
In some ways 4imprint’s trading reflects the health of the US economy. There will be increasing attention paid to the impact of inflation on customer budgets and the threat of recession, on top of ongoing concerns regarding stock availability and cost inflation for both stock and staff. However, these are factored into the numbers (as much as is sensible currently). 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.
|52 week high/low||4705.0p/2240.0p|
4imprint’s update shows the group continuing to trade strongly through Q422 and we have again upgraded estimates. FY22 revenue will be 3% ahead of our earlier modelling at $1.14bn, 45% ahead of prior year. An 8.8% adjusted operating margin compares with our earlier assumption of 8.2%. We edge revenue forecasts up by 3% for FY23 and FY24 but assume some modest settling back in margin to reflect additional operating costs to support the increased scale of the business. As before, we suggest management may propose a FY22 special dividend, given net cash of $86.7m at the year-end.
|Y/E Dec||Revenue (US$m)||EBITDA (US$m)||PBT (US$m)||EPS (fd) (c)||P/E (x)||P/CF (x)|