4imprint Group

LN: FOUR

£733m market cap

2610p last close

4imprint is the leading direct marketer of promotional products in the US, Canada, the UK and Ireland. 97% of 2018 revenues were generated in the US and Canada.

Investment summary

4imprint’s May AGM statement outlined good further progress in the first four months of FY19, buoyed by the additional brand support marketing. Order intake was up by 14% and revenues ahead by 16%, as the increasing quantity of apparel in the mix moves the average order value ahead. The group continues to be well placed to carry on growing its market share in the substantial and fragmented promotional goods sector, on margins that should edge ahead. The group has strong cash conversion (100%) and a cash rich balance sheet. Interim figures are scheduled for 31 July.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 627.5 45.1 42.5 107.7 30.4 20.6
2018A 738.4 48.8 46.4 132.3 24.8 20.1
2019E 812.3 55.7 52.6 147.0 22.3 16.3
2020E 877.3 60.5 57.4 159.5 20.6 15.3
Last updated on 25/07/2019
Industry outlook

The PPAI, an industry body, estimates the value of the US promotional products distribution market at US$25bn. 4imprint is the largest distributor in this large and diverse market, yet has market share of less than 3%. The market reportedly grew by c 5% for FY18 and 4imprint has consistently grown faster than the market, building share through its reputation for quality, reliability and customer service. There are no direct comparators, as the other larger players have differentiated business models.

Last updated on 25/07/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 38.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.3) 6.1 34.5
Relative* (4.4) 5.6 38.3
52-week high/low 2700.0p/1800.0p
*% relative to local index
Key management
Kevin Lyons-Tarr CEO
David Seekings FD