Good morning! A shorter & earlier report than usual today, as I've been roped into doing a talk this afternoon, on the Stockopedia stand, at the London Investor Show at Olympia. I think registration is still open, here is the link. So perhaps see some of you there? I'll do my usual thing of running through how I use Stockopedia, and talking about current small cap investing themes, stocks I do & don't like, etc.
4imprint (LON:FOUR)
Share price: 727p
No. shares: 28.0m
Market Cap: £ 203.6m
This is such a good company, it's been filed in my "kicking myself that I didn't buy any, but it's a bit too expensive now" tray. The recent dip on general market sentiment, was with hindsight a buying opportunity. The company has today put out another positive update, and the shares have shot up about 10% this morning.
Interim Management Statement - this is a calendar Q3 update. Strong performance is continuing, and remember that this is essentially an American company, as that's where the bulk of turnover & profits come from;
The Group continues to report strong organic growth. Revenue* for the third quarter was £66.13m, 16% ahead of last year. Year to date revenue* was £181.79m, 15% ahead of last year. The average year to date USD exchange rate was 1.67 (2013:1.55).
North American revenue* in US dollars for the third quarter was $106.14m, 25% ahead. Year to date revenue* was $291.24m, 24% ahead.
That's clearly an excellent performance, 25% revenue growth (which I think is all organic) in constant currency means that the company has shrugged off the adverse move in sterling:dollar. The reporting currency is being changed to US dollars for 2014 results and beyond. That's a sensible move in my opinion, as it will eradicate big currency translation moves within the accounts, helping investors to better understand underlying performance.
Outlook - again, sounds positive;
The Group has continued to achieve strong revenue growth, leaving it ahead of management expectations at this stage in the year and underpinning the Board's expectation that the Group will achieve a good result for the year as a whole.
Valuation - broker consensus is currently for 37p EPS this year. I'll stick my neck out here and say it looks as if they might get to 40p. That puts the shares, at 727p on a PER of 18.2, which looks about…
