Companies can't get enough of 4imprint's T-shirts, mousepads and keyrings. Soaring order volumes sent operating profits - excluding one-off costs and pension charges - up 42 per cent to $27.8m (£18.2m) at the US-focused direct marketer of promotional products.
4imprint's US revenues surged a quarter to $399m as orders from new and existing customers climbed 24 per cent and 23 per cent, respectively. That was miles ahead of the broader market's 5 per cent growth, reflecting 4imprint's use of data-informed and online marketing, well-timed sample mailings and the increased circulation of its print catalogue. The strategy had similar success in the UK and Ireland, with constant-currency sales up 23 per cent.
Stellar top-line growth, coupled with assiduous cost control, meant 4imprint's operating margin widened from 5.9 per cent to 6.7 per cent. It also got bang for its buck, hiking marketing spend by more than a quarter yet still wringing out $6 of revenue for every dollar spent. And it's doubling down on the US by investing $9m this year to expand its head office and distribution centre.
The margin expansion prompted broker Peel Hunt to raise its 2015 pre-tax profit forecast by 4 per cent to $32.2m, giving EPS of 80.1¢ (from $27.2m and 69.2¢ in 2014).
| 4IMPRINT (FOUR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,002p | MARKET VALUE: | £281m | |
| TOUCH: | 984-1,020p | 12-MONTH HIGH: | 1,020p | LOW: 611p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 50¢ | NET CASH: | $18.3m | |
| Year to 27 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 144 | 3.9 | 26.7 | 13.7 |
| 2011 | 159 | 0.4 | -6.2 | 14.6 |
| 2012 (restated) | 184 | 6.4 | 16.4 | 15.5 |
| ($m) | ($m) | (¢) | (p) | |
| 2013 (restated) | 333 | 14.5 | 40.1 | 17.0 |
| 2014 | 416 | 23.3 | 59.7 | 20.5 |
| % change | +25 | +61 | +49 | +20 |
Ex-div: 9 Apr Payment: 13 May £1=$1.53 | ||||
