4imprint (FOUR) has spun off its UK manufacturing arm, SPS, to focus on keeping companies stocked with the branded pens, dongles and mugs they give customers as promotional freebies. Sales growth of 15 per cent in North America, where the company makes virtually all its sales, pushed up underlying operating profits by over a third last year.
There's also ample room for further gains, as 4imprint holds only a 2 per cent share of the growing $20bn (£12bn) North American market. The company has “demonstrably grown in a very large and fragmented market based on market-share gain,” says executive chairman John Poulter, who expects sales to continue growing 15 per cent a year. Last year orders from new and existing customers rose 8 and 19 per cent, respectively.
4imprint also made progress in other key areas, notably the reduction of its pension deficit by a quarter to £17m. Moreover, it increased its net cash position by about 45 per cent, to £16m, and improved its marketing efficiency, with a 4 per cent rise in revenue per marketing dollar spent.
Broker WH Ireland expects adjusted pre-tax profits of £13m, giving EPS of 33.8p, rising to £14.5m and 37.9p in 2015.
| 4IMPRINT (FOUR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 691p | MARKET VALUE: | £185m | |
| TOUCH: | 691-705p | 12-MONTH HIGH: | 739p | LOW: 392p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 63p | NET CASH: | £15.8m | |
| Year to 28 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 169 | 2.8 | 9.4 | 12.8 |
| 2010 | 144 | 3.9 | 26.7 | 13.7 |
| 2011 | 159 | 0.4 | -6.2 | 14.6 |
| 2012 (restated) | 184 | 6.4 | 16.4 | 15.5 |
| 2013 | 213 | 9.3 | 25.6 | 17 |
| % change | +16 | +45 | +56 | +10 |
Ex-div:09 Apr Payment:09 May | ||||
