REG - 4imprint Group PLC - Half-year Report
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RNS Number : 1001U 4imprint Group PLC 06 August 2025
6
August 2025
4imprint Group plc
Half year results for the 26 weeks ended 28 June 2025
4imprint Group plc (the "Group"), a direct marketer of promotional products,
today announces its half year results for the 26 weeks ended 28 June 2025. The
results for the half year and prior half year are unaudited.
Financial Overview Half year Half year Change
2025 2024
$m $m
Revenue 659.4 667.5 -1%
Operating profit 70.7 69.9 +1%
Profit before tax 74.0 73.0 +1%
Cash and bank deposits 102.3 121.5 -16%
Basic earnings per share (cents) 197.4 194.3 +2%
Interim dividend per share (cents) 80.0 80.0 -
Interim dividend per share (pence) 60.1 62.7 -4%
Operational Overview
· Strong retention of existing customers and increased market share in
an environment where new customer acquisition remains challenging:
· 1,054,000 total orders received (H1 2024: 1,085,000)
· 125,000 new customers acquired (H1 2024: 145,000)
· Encouraging existing customer retention profile
· Average order values remained strong (flat with H1 2024)
· Operating profit margin improved to 10.7% (H1 2024: 10.5%) reflecting
modest price adjustments entering the year against minimal supplier cost
increases and the flexibility of the marketing mix
· Free cash flow of $74.6m generated in the period (H1 2024: $59.1m)
· Group well financed with cash and bank deposits of $102.3m at 28 June
2025, after the $119.9m of 2024 final and special dividends paid in the first
half
· Interim dividend of 80.0c per share declared (2024: 80.0c)
Paul Moody, Chairman said:
"Despite some market challenges and an anticipated level of rising product
cost due to tariffs in the second half, the Board expects that full year Group
revenue and profit before tax will remain within the current range of
analysts' forecasts.
"The Board is confident in the Group's ability to navigate current market
conditions, delivering the strongest possible near-term financial results
while positioning the business to take advantage of opportunities that will
present themselves as conditions improve."
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
Michelle Brukwicki, Chief Financial Officer Eleni Menikou
Chairman's Statement
Performance summary
In the first half of 2025 the Group delivered a resilient operational and
financial performance. Although revenue was broadly flat, we continued to take
market share in a market subject to volatile macroeconomic conditions.
Group revenue in the first half was $659.4m, down 1% over the same period in
2024 (H1 2024: $667.5m). Gross margins remained strong as the product cost
impact from tariffs did not significantly materialise in the first half of the
year and the marketing mix provided the flexibility we anticipated. As a
result of these factors, operating profit margin improved to 10.7% (H1 2024:
10.5%).
Profit before tax for the period was up 1% at $74.0m (H1 2024: $73.0m),
driving basic earnings per share of 197.4c (H1 2024: 194.3c). Cash conversion
remained favourable, resulting in cash and bank deposits at the half year of
$102.3m (H1 2024: $121.5m).
Strategy
Our strategic direction has not changed. We aim to deliver attractive organic
revenue growth by increasing our share of the fragmented yet substantial
markets that we serve.
We take a long-term view of the business. This includes making necessary
investments in the people, marketing resources and infrastructure required for
success, regardless of the immediate market conditions. From experience, we
know that maintaining investment in the business in more difficult times
positions us to take advantage of market share opportunities when conditions
improve.
Dividend
The Group is in a strong financial position, with cash and bank deposits at
the half year of $102.3m (H1 2024: $121.5m). Consequently, and in line with
its balance sheet funding and capital allocation guidelines, the Board has
declared an interim dividend of 80.0c per share (2024: 80.0c).
Outlook
Despite some market challenges and an anticipated level of rising product cost
due to tariffs in the second half, the Board expects that full year Group
revenue and profit before tax will remain within the current range of
analysts' forecasts.
The Board is confident in the Group's ability to navigate current market
conditions, delivering the strongest possible near-term financial results
while positioning the business to take advantage of opportunities that will
present themselves as conditions improve.
Paul Moody
Chairman
5 August 2025
Operating and Financial Review
Operating Review
Performance overview
In our 2024 full year results announcement, issued on 12 March 2025, we noted
continued uncertainty in the market. These market conditions have persisted
and continue to influence demand in 2025.
The Advertising Specialty Institute (ASI), a North American industry body,
recorded market revenue growth estimates of only 1.8% for full year 2024,
followed by a decline of 3.6% and 3.2% in the first and second quarters of
2025 respectively. The current North American promotional products industry
revenue remains at levels similar to 2019, which means that industry order
volumes have yet to recover to pre-pandemic levels creating a challenging
environment for demand generation. However, we have continued to take market
share while market conditions have been challenging.
In total, 1,054,000 orders were received in the first half of 2025. This was a
decrease of 3% over the same period in 2024, reflecting strong existing
customer retention but a more difficult environment for new customer
acquisition.
Orders from new customers totalled 217,000, 13% below the 250,000 received in
the first half of 2024. 125,000 new customers were acquired over the period
compared to 145,000 in 2024.
We received 837,000 orders from existing customers in the period, a slight
increase over 835,000 in the first half of 2024. We are very pleased with the
strength and resilience of our customer retention and the quality of the
customers we are acquiring with our current marketing mix.
Average order values remained strong, and were flat to the same period last
year.
Group revenue in the first half was $659.4m (H1 2024: $667.5m), a decrease of
1%. Operating profit for the period was $70.7m, an increase of 1% compared to
$69.9m in the first half of 2024. We slightly improved our double-digit
operating profit margin for the Group to 10.7% (H1 2024: 10.5%). There were
two primary drivers contributing to this strength in operating profit margin:
· Gross profit percentage for the first half of 2025 was 32.8% (H1
2024: 32.1%), benefitting from modest price adjustments entering the year,
against minimal supplier costs increases during the first half.
· The resilience and flexibility of the marketing engine,
generating revenue per marketing dollar in the first half of $7.79 (H1 2024:
$7.64). Although we decreased marketing spend based on our view of market
conditions, we continued to invest in marketing as we know from experience
that this investment will position us well when economic conditions improve.
Our business model remains very cash-generative, with consistent negative
working capital requirements. Underlying operating cash flow conversion was
118% (H1 2024: 106%). Free cash flow of $74.6m was generated in the period (H1
2024: $59.1m), delivering a cash and bank deposits total of $102.3m (H1 2024:
$121.5m) at the half year.
Operational highlights
Good progress has been made in the period in several operational areas.
· People. Our team members are essential to our current and future
success. We have made key appointments at the strategic leadership level and
have added team members to strengthen our platform for future profitable
growth. We have been able to attract the high-quality talent we need in a
variety of areas across the business.
· Marketing. The development of and investment in the brand
component of our marketing mix has been the key catalyst behind our improved
marketing productivity in recent years. We believe that our investment in an
increasing level of aided and unaided brand awareness strengthens the
business. Additionally, we believe in the importance of maintaining a strong
marketing presence even when market conditions aren't as favourable as this
positions the business to continue to take market share as conditions improve.
In the first half, the flexibility of our marketing mix was evident, as it
allowed us to reduce overall marketing spend whilst still maintaining the
strong marketing presence we believe to be essential.
· Supply. The volatility and uncertainty resulting from new tariff
policies has introduced stress into the supply chain. During these times of
stress, we have relied on the deep relationships we have with our key Tier 1
suppliers to work together to manage issues effectively. In the first half of
the year we saw very little impact on product costs from the tariff situation
as most of our suppliers had significant inventory positions. Over the course
of the second half we anticipate there will be increased pressure on product
cost as inventory is replenished, however, we don't anticipate any significant
stock outages.
Outlook
Although market demand in the first half of 2025 was lower than prior year, we
have continued to take market share in the period and delivered a resilient
performance in the context of a volatile macroeconomic background.
As demonstrated in previous periods of uncertainty and supply chain
disruption, the Group's strategy, including its scale and strong balance
sheet, gives the business a competitive advantage. As ever, we will continue
investing in the business to be positioned for growth when customer demand
strengthens. We remain confident in our strategy and our prospects.
Financial Review
The Group's revenue and profit in the period, summarising expense by function,
were as follows:
Half year 2025 Half year 2024
$m $m
Revenue 659.4 667.5
Gross profit 216.5 214.0
Marketing costs (84.7) (87.4)
Selling costs (25.3) (24.7)
Administration and central costs (35.8) (32.0)
Operating profit 70.7 69.9
Net finance income 3.3 3.1
Profit before tax 74.0 73.0
Taxation (18.5) (18.3)
Profit for the period 55.5 54.7
Group operating result
The first half of 2025 has seen a resilient financial performance in a
volatile macroeconomic environment. Demand level revenue (value of orders
received) decreased by 3% over the 2024 comparative period, driven by a fall
in total order numbers (3%) and a flat average order value. Reported revenue
for the period was 1% below the first half of 2024; this is better than the
demand level revenue trend due to a reduction in the open order backlog.
The gross profit percentage of 32.8% (H1 2024: 32.1%) has benefitted from
modest price adjustments entering the year against minimal supplier cost
increases received to date.
Marketing spend has been maintained at 13% of revenue (H1 2024: 13%),
resulting in revenue per marketing dollar of $7.79 (H1 2024: $7.64). The
marketing mix continues to provide the flexibility that we anticipated,
allowing us to adjust investment to fit the prevailing demand conditions.
Selling costs have remained stable at 4% of revenue (H1 2024: 4%) following
prior investment in customer service resource.
Administration and central costs have increased 12% over H1 2024. This
increase is attributable to investment in people and IT development, and IFRS
2 charges associated with the grant of new awards under the Long-Term
Incentive Plan.
The factors outlined above have combined to deliver an uplift in operating
profit to $70.7m (H1 2024: $69.9m) and operating profit margin to 10.7% (H1
2024: 10.5%), demonstrating the strength and resilience of our direct
marketing model, even in challenging market conditions.
Segmental performance
Revenue Operating
profit/(loss)
Half year 2025 Half year 2024 Half year 2025 Half year 2024
$m $m $m $m
North America 646.8 654.7 74.2 72.6
UK & Ireland 12.6 12.8 (0.2) (0.3)
Direct Marketing operations 659.4 667.5 74.0 72.3
Head Office costs - - (3.3) (2.4)
Total 659.4 667.5 70.7 69.9
North America revenue decreased 1% and operating profit increased by 2%. As
the business constitutes more than 98% of Group revenue and 104% of Group
operating profit, the commentary for the Group operating result above applies
equally to the North American business.
UK & Ireland revenue decreased 2% reflecting a sustained low growth
economic environment and weak business confidence impacted by recent employer
tax rises.
Foreign exchange
The primary US dollar exchange rates relevant to the Group's results were as
follows:
Half year 2025 Half year 2024 Full year 2024
Period end Average Period end Average Year-end Average
Sterling 1.37 1.30 1.26 1.26 1.26 1.28
Canadian dollars 0.73 0.71 0.73 0.74 0.69 0.73
The Group reports in US dollars, its primary trading currency. It also
transacts business in Canadian dollars, Sterling and Euros. Sterling/US dollar
is the exchange rate most likely to impact the Group's financial performance.
The primary foreign exchange considerations relevant to the Group's operations
are as follows:
· translational risk in the income statement remains low with the
majority of the Group's revenue arising in US dollars, the Group's reporting
currency;
· the constituent elements of the Group balance sheet are mostly
US dollar-based; and
· the Group generates cash mostly in US dollars, but its primary
applications of post-tax cash are Shareholder dividends and some Head Office
costs which are paid in Sterling.
As such, the Group's cash position is sensitive to Sterling/US dollar exchange
movements. To the extent that Sterling weakens/strengthens against the US
dollar, more/less funds are available in payment currency to fund these cash
outflows.
Net finance income
Net finance income in the period was $3.3m (H1 2024: $3.1m), comprising
interest earned on cash deposits and lease interest charges under IFRS 16. The
increase in finance income on H1 2024 reflects the higher level of cash
deposits held over the period.
Taxation
The tax charge for the half year was $18.5m (H1 2024: $18.3m) giving an
effective tax rate of 25% (H1 2024: 25%). The primary component of the charge
relates to current tax on US taxable profits.
Earnings per share
Basic earnings per share increased 2% to 197.4c (H1 2024: 194.3c), reflecting
the 1% increase in profit after tax and a lower weighted average number of
shares in issue compared to the prior period.
Dividends
Dividends are determined in US dollars and paid in Sterling, converted at the
exchange rate on the date that the dividend is declared.
The Board has declared an interim dividend of 80.0c per share (2024: 80.0c).
In Sterling, the interim dividend per share will be 60.1p (2024: 62.7p). The
dividend will be paid on 15 September 2025 to Shareholders registered on 15
August 2025.
Cash flow
The Group had cash and bank deposits of $102.3m at 28 June 2025 (29 June 2024:
$121.5m; 28 December 2024: $147.6m). Cash flow in the period is summarised as
follows:
Half year Half year
2025 2024
$m $m
Operating profit 70.7 69.9
Share option charges 1.8 0.9
Depreciation and amortisation 2.7 2.3
Lease depreciation 0.9 0.8
Change in working capital 9.6 13.3
Capital expenditure (2.2) (13.4)
Underlying operating cash flow 83.5 73.8
Tax and interest (12.9) (12.9)
Own share transactions (3.2) (0.6)
Capital element of lease payments (1.0) (0.7)
Exchange and other 8.2 (0.5)
Free cash flow 74.6 59.1
Dividends to Shareholders (119.9) (42.1)
Net cash (outflow)/inflow in the period(1) (45.3) 17.0
(1) Representing the movement in cash and bank deposits balances.
The Group generated underlying operating cash flow of $83.5m (H1 2024:
$73.8m), a conversion rate of 118% of operating profit (H1 2024: 106%). The
high conversion rate reflects the efficiency of the Group's drop-ship business
model. Capital expenditure during the period includes investment in IT and
machinery to support our in-house embroidery and digital print operations; the
first half of 2024 included spend on expanding the capacity and solar array at
the Oshkosh distribution centre (a $20m project) which was completed in the
prior year.
Free cash flow increased by $15.5m to $74.6m (H1 2024: $59.1m) due principally
to the reduced capital expenditure noted above and exchange gains on cash
remitted from the US at the end of 2024 to the parent company and converted
into Sterling to fund the final and special dividends paid to Shareholders in
June 2025.
Balance sheet and Shareholders' funds
Net assets at 28 June 2025 were $128.6m, compared to $185.1m at 28 December
2024. The balance sheet is summarised as follows:
28 June 28 December
2025 2024
$m $m
Non-current assets 57.0 58.0
Working capital (23.3) (13.5)
Cash and bank deposits 102.3 147.6
Lease liabilities (4.3) (5.3)
Other assets and liabilities - net (3.1) (1.7)
Net assets 128.6 185.1
Shareholders' funds decreased by $56.5m since the 2024 year-end. The main
elements of the change were retained profit in the period of $55.5m and equity
dividends paid to Shareholders of $(119.9)m.
The Group had a net negative working capital balance of $23.3m at 28 June 2025
(28 December 2024: $13.5m). This net negative position reflects the strength
of our business model, with low inventory requirements, a high proportion of
customers paying by credit card and the payment of suppliers on agreed terms.
Financing and liquidity
Full details of the Board's balance sheet funding guidelines and capital
allocation priorities are set out on page 51 of the Annual Report &
Accounts 2024. The Board retains the same guidelines in both areas.
The primary aim of these guidelines and priorities is to provide operational
and financial flexibility through different economic cycles to be able to
invest in opportunities as they arise, and to meet commitments to Shareholders
through the maintenance of regular dividend payments.
The Group has a $20.0m working capital facility with its principal US bank,
JPMorgan Chase, N.A. The facility has minimum net income and debt to EBITDA
covenants. The interest rate is the Secured Overnight Financing Rate plus
1.6%, and the facility expires on 31 May 2030. In addition, an overdraft
facility of £1.0m with an interest rate of the Bank of England base rate plus
2.0% (or 2.0% if higher) is available from the Group's principal UK bank,
Lloyds Bank plc, until 31 December 2025. These facilities were undrawn at the
period end (2024: undrawn) and the Group expects these facilities to be
renewed prior to their respective expiry dates.
The Group had cash and bank deposits of $102.3m at the period end (2024:
$147.6m) and has no current requirement or plans to raise additional equity or
core debt funding.
Principal risks and uncertainties
The Board recognises that effective risk management and a robust system of
internal control are integral components of good corporate governance and are
fundamental to the long-term sustainable success of the Group. Risk appetite,
the risk management process and associated mitigating activities and controls
are all essential elements of the Group's strategic and operational planning
processes.
The Board, supported by the Audit Committee, has overall responsibility for
oversight and management of risk and control across the Group. On a day-to-day
basis this responsibility is delegated to the Executive Directors and
supported by the Group's Business Risk Management Committee. The Board is
committed to embedding a risk aware culture, setting the tone from the top and
ensuring that risk is an intrinsic element of the governance structure.
The current principal risks and uncertainties that would impact the successful
delivery of the Group's strategic goals are set out on pages 56 to 65 of the
Annual Report & Accounts 2024, a copy of which is available on the Group's
investor relations website at https://investors.4imprint.com. These are:
· Macroeconomic conditions.
· Markets and competition.
· Effectiveness of key marketing techniques and brand development.
· Business facility disruption.
· Domestic supply and delivery.
· Failure or interruption of information technology systems and
infrastructure.
· Cyber threats.
· Supply chain compliance and ethics.
· Legal, regulatory and compliance.
· Climate change.
· Products and market trends.
An update to the risk environment in respect of the macroeconomic conditions
and cyber threats risks are provided below. The other principal risks and
uncertainties remain unchanged since the 2024 year-end.
Macroeconomic conditions: The uncertain political and economic environment in
our primary US market has continued through the first half of 2025. In
particular, the tariff policy landscape has been highly volatile and is
expected to continue into the second half of the year, impacting business
confidence and presenting downside risks to growth and margins. We continue to
monitor developments closely, particularly with regard to tariffs on US
imports from China which accounted for approximately 60% of our revenue in
2024, and will work with our supplier partners to manage the impact of tariffs
applied to the products we offer.
Cyber threats: There has been a surge of high-profile cyber attacks during the
first half of 2025, particularly in the UK, highlighting the increasing
sophistication and impact of cyber threats on businesses. We continue to
invest in expertise and technical solutions to enhance our overall security
posture and operational effectiveness to counter these increasing external
threats.
The list is not exhaustive and other, as yet unidentified, factors may have an
adverse effect.
Going concern
The condensed consolidated financial statements have been prepared on a going
concern basis. In adopting the going concern basis, the Directors have
considered the Group's business activities, principal risks and uncertainties,
performance and financial position.
The Group has modelled its cash flow outlook for the period to 2 January 2027
considering the volatile macroeconomic conditions and current US tariff
policy. This 'base case' forecast shows no liquidity concerns or requirement
to utilise the Group's undrawn facilities described in this Financial Review.
In addition to the scenario reflecting severe but plausible downside demand
assumptions as described in the Financial Review section of the Annual Report
& Accounts 2024, a further scenario was developed to stress test the
impact of higher tariffs being levied on US imports from China over a
sustained period. The results of these scenarios showed the Group would be
able to withstand the impact of these severe stress events occurring.
Based on their assessment, the Directors have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group's and Company's ability
to continue as a going concern for the period to 2 January 2027.
Kevin Lyons-Tarr Michelle Brukwicki
Chief Executive Officer Chief Financial Officer
5 August 2025
Condensed Consolidated Income Statement
For the 26 weeks ended 28 June 2025
Half year Half year Full year
2025 2024 2024
Note Unaudited Unaudited Audited
$m $m $m
Revenue 6 659.4 667.5 1,367.9
Cost of sales (442.9) (453.5) (932.5)
Gross profit 216.5 214.0 435.4
Operating expenses (145.8) (144.1) (287.3)
Operating profit 6 70.7 69.9 148.1
Finance income 3.4 3.3 6.7
Finance costs (0.1) (0.2) (0.4)
Net finance income 3.3 3.1 6.3
Profit before tax 74.0 73.0 154.4
Taxation 7 (18.5) (18.3) (37.2)
Profit for the period 55.5 54.7 117.2
Cents Cents Cents
Earnings per share
Basic 8 197.4 194.3 416.3
Diluted 8 196.9 193.9 415.3
Condensed Consolidated Statement of Comprehensive Income
For the 26 weeks ended 28 June 2025
Half year Half year Full year
2025 2024 2024
Unaudited Unaudited Audited
$m $m $m
Profit for the period 55.5 54.7 117.2
Other comprehensive income
Items that may be reclassified subsequently to the income statement:
Currency translation differences 8.6 (0.5) (1.1)
Items that will not be reclassified subsequently to the income statement:
Remeasurement gains on post-employment obligations 0.1 - -
Tax relating to components of other comprehensive income 0.6 0.8 0.4
Other comprehensive income/loss for the period, net of tax 9.3 0.3 (0.7)
Total comprehensive income for the period, net of tax 64.8 55.0 116.5
Condensed Consolidated Balance Sheet
At 28 June 2025
28 June 29 June 28 Dec
2025 2024 2024
Unaudited Unaudited Audited
$m $m $m
Non-current assets
Goodwill 1.0 1.0 1.0
Intangible assets 0.3 0.4 0.3
Property, plant and equipment 48.8 46.0 49.3
Right-of-use assets 3.3 11.0 4.2
Deferred tax assets 3.5 3.9 3.2
Retirement benefit asset 0.1 - -
57.0 62.3 58.0
Current assets
Inventories 18.9 20.4 17.1
Trade and other receivables 70.7 74.7 64.4
Corporation tax debtor - - 0.4
Other financial assets - bank deposits - - 94.3
Cash and cash equivalents 102.3 121.5 53.3
191.9 216.6 229.5
Current liabilities
Lease liabilities (1.8) (1.6) (1.9)
Trade and other payables (112.9) (116.3) (95.0)
Current tax creditor (1.3) (1.6) -
(116.0) (119.5) (96.9)
Net current assets 75.9 97.1 132.6
Non-current liabilities
Lease liabilities (2.5) (10.4) (3.4)
Deferred tax liabilities (1.8) (1.2) (2.1)
(4.3) (11.6) (5.5)
Net assets 128.6 147.8 185.1
Shareholders' equity
Share capital and share premium reserve 89.7 89.7 89.7
Other reserves 13.3 5.3 4.7
Retained earnings 25.6 52.8 90.7
Total Shareholders' equity 128.6 147.8 185.1
Condensed Consolidated Statement of Changes in Shareholders' Equity
(unaudited)
For the 26 weeks ended 28 June 2025
Retained earnings
Share Other
capital Share reserves
premium
reserve
Own Profit Total
shares and loss equity
$m $m $m $m $m $m
At 31 December 2023 18.9 70.8 5.8 (1.3) 40.3 134.5
Profit for the period 54.7 54.7
Other comprehensive income
Currency translation differences (0.5) (0.5)
Tax relating to components of other comprehensive income 0.8 0.8
Total comprehensive income (0.5) 55.5 55.0
Own shares utilised 1.1 (1.1) -
Own shares purchased (0.6) (0.6)
Share-based payment expense 0.9 0.9
Deferred tax relating to components of equity 0.1 0.1
Dividends (note 9) (42.1) (42.1)
At 29 June 2024 18.9 70.8 5.3 (0.8) 53.6 147.8
Profit for the period 62.5 62.5
Other comprehensive income
Currency translation differences (0.6) (0.6)
Tax relating to components of other comprehensive income (0.4) (0.4)
Total comprehensive income (0.6) 62.1 61.5
Own shares utilised 0.2 (0.2) -
Own shares purchased (1.4) (1.4)
Share-based payment expense 0.7 0.7
Deferred tax relating to components of equity (0.1) (0.1)
Dividends (note 9) (23.4) (23.4)
At 28 December 2024 18.9 70.8 4.7 (2.0) 92.7 185.1
Profit for the period 55.5 55.5
Other comprehensive income
Currency translation differences 8.6 8.6
Remeasurement gains on post-employment obligations 0.1 0.1
Tax relating to components of other comprehensive income 0.6 0.6
Total comprehensive income 8.6 56.2 64.8
Own shares utilised 0.5 (0.5) -
Own shares purchased (3.2) (3.2)
Share-based payment expense 1.8 1.8
Dividends (note 9) (119.9) (119.9)
At 28 June 2025 18.9 70.8 13.3 (4.7) 30.3 128.6
Condensed Consolidated Cash Flow Statement
For the 26 weeks ended 28 June 2025
Half year Half year Full year
2025 2024 2024
Unaudited Unaudited Audited
Note $m $m $m
Cash flows from operating activities
Cash generated from operations 10 85.7 87.1 162.1
Tax paid (16.3) (15.8) (35.8)
Finance income received 3.5 3.1 6.7
Lease interest (0.1) (0.2) (0.4)
Net cash generated from operating activities 72.8 74.2 132.6
Cash flows from investing activities
Purchase of property, plant and equipment (2.2) (13.5) (19.6)
Proceeds from sale of property, plant and equipment - 0.1 0.1
Decrease/(increase) in current asset investments - bank deposits 99.6 14.0 (81.7)
Net cash from/(used in) investing activities 97.4 0.6 (101.2)
Cash flows from financing activities
Capital element of lease payments (1.0) (0.7) (1.5)
Purchase of own shares (3.2) (0.6) (2.0)
Dividends paid to Shareholders 9 (119.9) (42.1) (65.5)
Net cash used in financing activities (124.1) (43.4) (69.0)
Net movement in cash and cash equivalents 46.1 31.4 (37.6)
Cash and cash equivalents at beginning of the period 53.3 90.5 90.5
Exchange gains/(losses) on cash and cash equivalents 2.9 (0.4) 0.4
Cash and cash equivalents at end of the period 102.3 121.5 53.3
Notes to the Interim Financial Statements
1 General information
4imprint Group plc is a public limited company incorporated in England and
Wales, domiciled in the UK and listed on the London Stock Exchange. Its
registered office is 25 Southampton Buildings, London, WC2A 1AL. The Group is
engaged in the direct marketing of promotional products.
These interim condensed consolidated financial statements, which were
authorised for issue in accordance with a resolution of the Directors on 5
August 2025, do not comprise statutory accounts within the meaning of Section
434 of the Companies Act 2006. Statutory accounts for the period ended 28
December 2024 were approved by the Board of Directors on 11 March 2025 and
delivered to the Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under Section 498 of the Companies Act 2006.
The financial information contained in this report has neither been audited
nor reviewed by the auditors, pursuant to Auditing Practices Board guidance on
Review of Interim Financial Information.
2 Basis of preparation
These interim condensed consolidated financial statements have been prepared
in US dollars in accordance with the Disclosure and Transparency Rules of the
Financial Conduct Authority and IAS 34 'Interim Financial Reporting', as
adopted by the United Kingdom, and should be read in conjunction with the
Group's annual consolidated financial statements for the period ended 28
December 2024 which were prepared in accordance with UK-adopted International
Accounting Standards.
As outlined in the Going concern section of the Financial Review, the
Directors consider it appropriate to continue to adopt the going concern basis
in preparing these interim condensed consolidated financial statements.
The tax charge for the interim period is accrued based on the best estimate of
the tax charge for the full financial year.
3 Accounting policies
The accounting policies adopted in the preparation of these interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
period ended 28 December 2024, as described in those annual financial
statements. New accounting standards, amendments or revisions to existing
standards or interpretations applicable for the first time in this reporting
period have not had a material impact on the Group's results or balance sheet.
4 Estimates and judgments
The critical accounting judgments and key assumptions and sources of
estimation uncertainty were the same as those applied to the Group's annual
consolidated financial statements for the period ended 28 December 2024.
5 Financial risk management
The Group's activities expose it to a variety of financial risks, including
currency risk, credit risk, liquidity risk and capital risk. These interim
condensed consolidated financial statements do not include all financial risk
management information and disclosures required in the annual financial
statements; they should be read in conjunction with the Group's annual
consolidated financial statements for the period ended 28 December 2024. There
have been no changes in any financial risk management policies since that
date.
6 Segmental reporting
The Group has two operating segments, North America and UK & Ireland. The
costs of the Head Office are reported separately to the Board, but this is not
an operating segment.
Half year Half year 2024 Full year 2024
Revenue from external customers 2025 $m $m
$m
North America 646.8 654.7 1,342.7
UK & Ireland 12.6 12.8 25.2
Total Group revenue 659.4 667.5 1,367.9
Profit Half year 2025 Half year 2024 Full year 2024
$m $m $m
North America 74.2 72.6 153.6
UK & Ireland (0.2) (0.3) (0.4)
Operating profit from Direct Marketing operations 74.0 72.3 153.2
Head Office costs (3.3) (2.4) (5.1)
Operating profit 70.7 69.9 148.1
Net finance income 3.3 3.1 6.3
Profit before tax 74.0 73.0 154.4
Other segmental information
Assets Liabilities
28 June 2025 29 June 2024 28 Dec 28 June 29 June 2024 28 Dec
$m $m 2024 2025 $m 2024
$m $m $m
North America 138.0 148.0 132.4 (114.9) (126.0) (98.0)
UK & Ireland 4.1 4.2 3.1 (4.5) (4.1) (3.1)
Head Office 106.8 126.7 152.0 (0.9) (1.0) (1.3)
Total 248.9 278.9 287.5 (120.3) (131.1) (102.4)
Head Office assets include the Group's other financial assets - bank deposits
and cash and cash equivalents balances.
Geographical analysis of revenue by destination
Half year 2025 Half year 2024 Full year
$m $m 2024
$m
North America 646.9 654.8 1,342.8
UK 12.1 12.3 24.2
All other countries 0.4 0.4 0.9
Total 659.4 667.5 1,367.9
7 Taxation
Taxation for the period has been calculated using the estimated tax rate that
would be applicable to the full year. Taxation recognised in the income
statement is as follows:
Half year 2025 Half year 2024 Full year 2024
$m $m $m
Current tax
Overseas tax 18.0 17.8 35.8
Total current tax 18.0 17.8 35.8
Deferred tax
Origination and reversal of temporary differences 0.5 0.5 1.4
Total deferred tax 0.5 0.5 1.4
Taxation 18.5 18.3 37.2
The Group has applied the mandatory temporary exception in Para 4A of the
Amendments to IAS 12 issued in May 2023 and endorsed in July 2023 and has
neither recognised nor disclosed information about deferred tax assets or
liabilities relating to Pillar Two income taxes and there is no current tax
impact on the financial statements for the half year 2025.
8 Earnings per share
Basic earnings per share is calculated by dividing the profit for the period
by the weighted average number of shares in issue during the period, excluding
shares held by the Employee Benefit Trust (EBT). The effect of excluding
shares held by the EBT is to reduce the average number by 58,821 (H1 2024:
17,774; FY 2024: 17,289).
Diluted earnings per share is calculated by adjusting the weighted average
number of shares to assume the conversion of all potentially dilutive ordinary
shares. Shares that are expected to be issued at a price below the market
price of the Company's ordinary shares under the share-based payment schemes
are potentially dilutive.
Half year Half year Full year
2025 Number 2024 Number 2024 Number
'000 '000 '000
Weighted average number of shares 28,114 28,155 28,155
Dilutive effect of share-based payments 78 60 65
Diluted weighted average number of shares 28,192 28,215 28,220
Basic earnings per share 197.4c 194.3c 416.3c
Diluted earnings per share 196.9c 193.9c 415.3c
9 Dividends
Half year Half year Full year
2025 2024 2024
Equity dividends - ordinary shares $m $m $m
Interim paid: nil (H1 2024: nil; FY 2024: 80.0c) - - 23.4
Final paid: 160.0c (H1 2024: 150.0c; FY 2024: 46.8 42.1 42.1
150.0c)
Special paid: 250.0c (H1 2024: nil; FY 2024: nil) 73.1 - -
119.9 42.1 65.5
The Directors have declared an interim dividend for 2025 of 80.0c per share
(interim 2024: 80.0c), an estimated payment amount of $22.5m, which will be
paid on 15 September 2025 to Shareholders registered on 15 August 2025.
10 Cash generated from operations
Half year Half year Full year
2025 2024 2024
$m $m $m
Profit before tax 74.0 73.0 154.4
Adjustments for:
Depreciation of property, plant and equipment 2.7 2.2 4.9
Amortisation of intangible assets - 0.1 0.2
Depreciation of right-of-use assets 0.9 0.8 1.7
Profit on disposal of property, plant and equipment - (0.1) -
Share-based payments expense 1.8 0.9 1.6
Net finance income (3.3) (3.1) (6.3)
Changes in working capital:
Increase in inventories (1.8) (6.8) (3.5)
(Increase)/decrease in trade and other receivables (6.2) (6.5) 3.8
Increase in trade and other payables 17.6 26.6 5.3
Cash generated from operations 85.7 87.1 162.1
11 Related party transactions
Transactions and balances between the Company and its subsidiaries have been
eliminated on consolidation. The Group did not participate in any related
party transactions with parties outside of the Group.
Alternative Performance Measures
An Alternative Performance Measure (APM) is a financial measure of historical
or future financial performance, financial position, or cash flows, other than
a financial measure defined or specified within IFRS.
The Group uses APMs to supplement standard IFRS measures to provide users with
information on underlying trends and additional financial measures, which the
Group considers will aid users' understanding of the business.
Definitions of the Group's APMs can be found on pages 159 and 160 of the
Annual Report & Accounts 2024.
Reconciliations of the free cash flow, capital expenditure, underlying
operating cash flow, and cash and bank deposits APMs to their closest IFRS
measures are provided below.
Half year 2025 Half year 2024
$m $m
Net movement in cash and cash equivalents 46.1 31.4
Less: Cash inflow from decrease in current asset investments - bank deposits (99.6) (14.0)
Add: Exchange gain on current asset investments - bank deposits 5.3 -
Add: Dividends paid to Shareholders 119.9 42.1
Add: Exchange gains/(losses) on cash and cash equivalents 2.9 (0.4)
Free cash flow 74.6 59.1
Half year 2025 Half year 2024
$m $m
Purchase of property, plant and equipment (2.2) (13.5)
Proceeds from sale of property, plant and equipment - 0.1
Capital expenditure (2.2) (13.4)
Half year 2025 Half year 2024
$m $m
Cash generated from operations 85.7 87.1
Add back: Profit on disposal of property, plant and equipment - 0.1
Less: Purchase of property, plant and equipment (2.2) (13.5)
Add: Proceeds from sale of property, plant and equipment - 0.1
Underlying operating cash flow 83.5 73.8
28 June 2025 29 June 2024 28 Dec 2024
$m $m $m
Other financial assets - bank deposits - - 94.3
Cash and cash equivalents 102.3 121.5 53.3
Cash and bank deposits 102.3 121.5 147.6
Statement of Directors' Responsibilities
The Directors confirm that, to the best of their knowledge, these interim
condensed consolidated financial statements have been prepared in accordance
with IAS 34 as adopted by the United Kingdom and that the interim management
report includes a fair review of the information required by DTR 4.2.7 and
4.2.8, namely:
· An indication of the important events that have occurred during
the first half of the year and their impact on the interim condensed
consolidated financial statements, and a description of the principal risks
and uncertainties for the remaining six months of the financial year; and
· Material related party transactions in the first half of the year
and any material changes in the related party transactions described in the
last annual report.
The Directors of 4imprint Group plc are as listed in the Group's Annual Report
& Accounts 2024 except for Michelle Brukwicki who was appointed as Chief
Financial Officer and a member of the Board with effect from 1 May 2025, and
David Seekings who stepped down as Chief Financial Officer and a member of the
Board on the same date.
By order of the Board
Kevin Lyons-Tarr Michelle Brukwicki
Chief Executive Officer Chief Financial Officer
5 August 2025
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