- Year-to-date shares up 30% to £58
- Total revenue up 16% to £1.32 billion
- New customers increased to 311,000
Shares in 4imprint (FOUR) were little changed this morning as the promotional products maker reported a 36% rise in pre-tax profit to £140.7 million for the 52 weeks ending 30 December 2023.
4imprint’s lacklustre share price movement was in sharp contrast to year-to-date gains of nearly 30%.
The company’s performance was particularly remarkable considering a challenging year and ‘a slowdown in growth in the promotional products industry in the second half of 2023,’ said 4imprint chairman Paul Moody.
Total revenue was up 16% to £1.32 billion compared to £1.14 billion in the same year ago period.
The company said trading results in the first two months of 2024 ‘have been in line’ with consensus forecasts and board expectations.
Shares has previously noted the success of the company’s resilient cash generative business model.
FURTHER BRAND DEVELOPMENT
The company attributed its strong financial results to development of the brand, retention of talent and a clear strategy.
The group is also well financed with cash and bank deposits of $104.5 million compared to $86.8 million in the same year ago period.
4imprint said the number of new customers increased in the year to 311,000 and total orders received in the full year were up 12%.
EXPERT VIEW
Fiona Orford-Williams, director of TMT (Technology Media and Telecom) at Edison group said in a research note: ‘4imprint continues to build market share in the large and fragmented North American market for promotional products.
‘At essence, it is a highly efficient marketing operation, using a combination of channels to recruit and retain its customers, with revenue per marketing dollar (over $8 per $1 spent in 2023) a key metric.
‘This includes spend on supporting the 4imprint brand, which has proved particularly effective, and which is now being rolled out to streaming services as well as linear broadcast channels. The group is highly cash generative, with over $100 million of cash and short-term deposits at the year end.
‘It is currently using some of that resource to extend its main distribution centre in Oshkosh, Wisconsin, which is increasing from 300,000 square ft to 450,000 square ft, with the solar array that provides its power also being extended.’
