As a provider of corporate promotional products, the fortunes of 4imprint (FOUR) are closely linked with business sentiment. While management reported a slowing in growth around the US election, this air of uncertainty seemed to have cleared during the first half of this year. Sales in North America – 97 per cent of the group’s total – were up 11 per cent to $290m (£220m). This is particularly encouraging against industry estimates of around 3 per cent average growth across the US and Canadian markets.
Total customer orders were up 11 per cent to 587,000, while new customer orders were up 4 per cent to 125,000. Higher year-on-year growth in customer acquisitions is expected during the second half, with catalogue marketing weighted more towards the latter part of the year. Orders from existing customers also continued to increase, up 14 per cent during the period. UK sales continued to be dampened by weak sterling, causing a 2 per cent contraction to £8.7m. However, sales were up 11 per cent on a constant currency basis.
Management also agreed a new cash contribution with the trustees of its defined benefit pension scheme in order to eliminate the deficit. It will make annualised payments of £2.25m until January 2023.
Analysts at Peel Hunt expect adjusted pre-tax profits of $42.3m during the 12 months to December 2017, giving EPS of 105.2¢ (from $37.9m and 97.2¢ in 2016).
| 4IMPRINT (FOUR) | ||||
| ORD PRICE: | 1,700p | MARKET VALUE: | £478m | |
| TOUCH: | 1,701-1,729p | 12-MONTH HIGH: | 1,900p | LOW: 1,475p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 102¢ | NET CASH: | $33.3m | |
| Half-year to 1 Jul | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
| 2016 | 270 | 11.1 | 28.2 | 12.3 |
| 2017 | 299 | 15.7 | 39.2 | 13.8 |
| % change | +11 | +41 | +39 | +12 |
| Ex-div: | 17 Aug | |||
| Payment: | 14 Sep | |||
| £1=$1.32 | ||||
