4imprint (FOUR) is a leading direct marketer of promotional products such as bags, pens and umbrellas adorned with company logos. Although listed in London, 97 per cent of the group’s revenues come from across the Atlantic, where it is exploiting significant growth opportunities with an extremely capital-light business model. These attractions have made it a top holding for two of the UK’s top-performing small-cap funds – BlackRock Throgmorton Trust and Aviva Listed Small and Mid-Cap fund.
IC TIP:
Buy
at
3300p
Tip style
Speculative
Risk rating
Medium
Timescale
Long Term
Bull points
Strong revenue growth
Good cash position
Attractive dividend yield
Fund manager top pick
Bear points
Cyclical
Supply chain risk