Printing and marketing products company 4imprint (FOUR) had a busy year, which should shift more focus onto its thriving US direct marketing business. The main corporate event during 2012 was the completion of the sale of its Brand Additions business for £24m, which allowed it to make £9.3m of payments into its it defined pension scheme - currently £23m in deficit - to reduce the risk of future liabilities rising.
Meanwhile, despite a presidential election, fiscal cliff uncertainty and hurricane-related disruption, its US direct marketing business continued to soar, lifting revenue 14 per cent to $257m (£169m), which represents over 90 per cent of the total. The market itself was estimated to be up 5 per cent and 4imprint continues to win share from its fragmented competition.
Performance in the UK direct marketing business was also strong with revenues up 16 per cent at £7m. Underlying profit for the division as a whole was £11m, which represented growth of 10 per cent - held back by investment to support the ongoing expansion of the business. SPS, the group's print business, also did well, boosting sales 9 per cent to £15.5m.
Overall, underlying profits rose 23 per cent to £10m. Strong cash generation and net disposal proceeds of £15.1m meant a £5.22m rise in net cash, despite £12.4m of pension-related cash payments.
Broker Peel Hunt forecasts 2013 pre-tax profits of £10.8m and EPS of 24.9p (from £9.3m and 21.5p in 2012).
| 4imprint (FOUR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 397p | MARKET VALUE: | £106m | |
| TOUCH: | 400-410 | 12-MONTH HIGH: | 410p | LOW: 240p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 52p | NET CASH: | £10.7m | |
| Year to 29 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 168 | 5.07 | 14.1 | 12.3 |
| 2009 | 169 | 2.83 | 9.39 | 12.8 |
| 2010 | 144 | 3.87 | 26.7 | 13.7 |
| 2011 | 159 | 0.36 | -6.18 | 14.6 |
| 2012 | 183 | 7.71 | 21.3 | 15.5 |
| % change | +15 | +2,052 | +6 | |
Ex-div: 3 Apr Payment: 3 May | ||||
