4imprint (FOUR) is homing in on its target of achieving $1bn (£780,000m) in revenues by 2022. Indeed, the group – a direct marketer of promotional products – would bypass this milestone next year, were it to achieve the same rate of growth that it saw in 2019.
Yet that depends to some extent on the potential fallout of the coronavirus outbreak. So far, the impact on 4imprint’s business has been minimal, but about 60 per cent of the “blank stock” that 4imprint sells – such as coffee mugs and stationery – originates in China. Those blank products are imported in bulk by the group’s domestic suppliers, who then emblazon them with company branding as and when orders are placed.
Most domestic suppliers already had “peak” inventory levels when the outbreak started because they tend to place orders to be delivered before the Lunar New Year period starts. Management noted that it had seen good progress in factories coming “back online” – and added that it does not have a complicated range; if customers cannot find one product, they can choose another from its range.
Broker FinnCap forecasts adjusted EPS of 172ȼ in 2020, up from 156ȼ in 2019.
| 4IMPRINT (FOUR) | ||||
| ORD PRICE: | 2,910p | MARKET VALUE: | £818m | |
| TOUCH: | 2,910-2,940p | 12-MONTH HIGH: | 3,540p | LOW: 1,980p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 224ȼ | NET CASH: | $39.1m* | |
| Year to 28 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
| 2015 | 497 | 31.2 | 81.3 | 26.6 |
| 2016 | 558 | 34.2 | 87.3 | 41.8 |
| 2017 | 628 | 40.7 | 103 | 42.6 |
| 2018 | 738 | 44.2 | 126 | 53.2 |
| 2019 | 861 | 54.0 | 152 | 66.7 |
| % change | +17 | +22 | +21 | +25 |
| Ex-div: | 09 Apr | |||
| Payment: | 15 May | |||
*Includes lease liabilities of $2m £1=$1.28 | ||||
