REG - 4imprint Group PLC - Trading Statement

4imprintAnnouncement

12/11/2024 07:00

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RNS Number : 7756L  4imprint Group PLC  12 November 2024

12 November 2024

4imprint Group plc ("4imprint" or the "Group")

Update on Current Trading

 

4imprint today provides a scheduled update on the Group's trading and
operations.

 

The Group has delivered a strong financial performance in difficult market
conditions in the 10 month period up to the end of October 2024.

 

The Board is pleased to update the full year 2024 financial guidance given
with the Interim results on 7 August 2024. Expectations for Group profit
before tax remain unchanged and are within the current range of analysts'
forecasts at just over $150m. Group revenue is expected to be around $1.37bn.

 

October year to date total order count was 2% higher than prior year. New
customer orders were 9% below prior year to date, but encouragingly existing
customer orders were up 6%, reflecting the quality of customers acquired under
the new marketing mix. Combined with strong average order values at 2% above
prior year, overall order revenue was 4% above the same time period in 2023.

 

The promotional products industry in our primary North American market has
continued to present a challenging trading backdrop. Continuing uncertainty
around economic conditions has translated into generally weaker levels of
corporate confidence, compounded by specific macro factors over which the
Group has no control, including elevated interest rates, severe weather events
and the distraction arising from the US election cycle.

 

Although these factors have resulted in some pressure on revenue, performance
across the remainder of the business has been very satisfactory. In
particular, gross profit margin has remained strong at around 32% and the
resilience and flexibility of the new marketing mix has enabled us to be agile
in tailoring our marketing investment to the prevailing market conditions. The
resulting double digit operating profit margin is a key factor underpinning
our Group profit before tax performance.

 

With a cash balance of $137m at the end of October 2024, the Group remains
highly cash generative and well financed.

 

Our experience is that less buoyant economic conditions represent a market
share opportunity for 4imprint as our financial strength allows us to keep
investing in the business and to take full advantage of the market recovery
when it arrives.

 

The Board remains very confident in the Group's strategy, positioning and
prospects.

 

 

For further information, please contact:

 

 4imprint Group plc                         MHP Group
 Tel: + 44 (0) 20 3709 9680                 Tel: + 44 (0) 7884 494112
 Kevin Lyons-Tarr, Chief Executive Officer  Katie Hunt
 David Seekings, Chief Financial Officer    Eleni Menikou

 

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