4imprint’s full-year results strayed into the red due to an impairment charge taken against its struggling trade promotional products business SPS. But the underlying progress of the group was impressive with operating profits rising 36 per cent to £8.4m, and the shares remain compelling.
The highlight was the US direct marketing business which grew revenues by 18 per cent and profits by 30 per cent thanks to attracting new customers - 120,000 in the year - retaining old ones and a tailwind from improving economic conditions. Meanwhile SPS is showing signs of recovery.
The £23.6m pension deficit continues to be an issue, but some of the proceeds from the £24m sale of Brand Additions will go towards paying this down and net cash of £5.46m is also a comfort. Broker Peel Hunt has upgraded its 2012 EPS forecast by 5 per cent to 21.5p (2011: 18.6p) and dividend of 15p is expected.
