4imprint’s (FOUR) branding initiatives – launched in 2018 – are progressing well. Indeed, the group – which is a direct marketer of promotional products – processed 778,000 orders during the first-half to June and won 147,000 new customers; a significant increase from 683,000 and 138,000 a year earlier.
In turn, management thinks the group is “running ahead of plan” against its target of achieving $1bn in revenues by 2022 – noting that this goal implied a sales growth rate of around 10 per cent. In the event, the promotional products group is generating top-line growth in the mid-teens.
North America – the group’s main geography – enjoyed a 17 per cent rise in revenues to $394m. Meanwhile, the UK endured a 3 per cent decline. 4imprint cites tough trading conditions on this side of the pond, and adverse currency movements – albeit the UK constitutes just 2.6 per cent of the overall top line.
Net cash landed at $42.7m at the half-year-end, up by 61 per cent – giving the group plenty of room to proceed with the planned $5m expansion of its Oshkosh distribution facility, which will be operational in August 2019. A dividend of 25ȼ (paid in pence) is also twice covered by earnings.
Broker FinnCap expects adjusted pre-tax profits of $54.2m and EPS of 152ȼ for 2019, up from $46.4m and 132ȼ last year.
4IMPRINT (FOUR) | ||||
ORD PRICE: | 2,920p | MARKET VALUE: | £ 821m | |
TOUCH: | 2,890-2,920p | 12-MONTH HIGH: | 2,990p | LOW: 1,765p |
DIVIDEND YIELD: | 2.0% | PE RATIO: | 26 | |
NET ASSET VALUE: | 153ȼ | NET CASH: | $42.7m |
Half-year to 29 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (p) |
2018 | 348 | 15.9 | 44.96 | 15.85 |
2019 | 405 | 19.4 | 54.81 | 20.52 |
% change | +16 | +22 | +22 | +29 |
Ex-div: | 08 Aug | |||
Payment: | 17 Sep | |||
£1 = $1.22 |