4imprint Group (FOUR)

Business description

4imprint is the leading direct marketer of promotional products in the US, Canada, the UK and Ireland. 97% of 2016 revenues were generated in the US and Canada.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2016A 558.2 40.8 38.4 98.7 25.7 15.3
2017A 627.5 45.1 42.5 107.7 23.6 16.0
2018E 691.5 45.6 42.5 117.9 21.5 16.1
2019E 760.7 52.8 49.7 135.9 18.7 13.9

Last updated on 09/03/2018

Latest research

Branding evolution

Update | Media | 09/03/2018

Strong Q4, US tax change gains

Update | Media | 17/01/2018

Market share gains continue

Update | Media | 01/08/2017

Online catalogue of success

Update | Media | 10/03/2017

Premium growth continues

Update | Media | 19/01/2017

Interims and dividend increase

Update | Media | 02/08/2016

Strong promotion

Update | Media | 12/05/2016

Daily comment

Institutional Comment | Media | 04/03/2015

Outmarketing the market

Update | Media | 07/03/2013

Strong finish to 2012

Update | Media | 24/01/2013

On target

Update | Media | 08/11/2012

Organic growth model

Update | Media | 14/08/2012

Investment summary

4imprint has announced another set of strong results, accompanied by a supplementary dividend of $0.60 to be paid alongside the final. It has also outlined a programme to build a more substantial longer-term business through adding brand awareness campaigns to the existing marketing spend. Revenues have grown at a CAGR of 18.1% over the last six years. Guidance for the next five years is for double-digit growth to reach the $1bn level by FY22 and we have lifted our forecasts to reflect this. Profit growth is restrained in the near term by the additional marketing spend, but should move on faster in FY19, with EPS further boosted by a lower US tax charge.

Last updated on 09/03/2018

Industry outlook

The US promotional products market is very large, estimated at a value of c $25bn, with a handful of larger distributors and a vast number of smaller, localised operators. The main longer-term trend is faster growth among the mid-sized and larger operators, benefiting from their larger marketing muscle and the increasing prevalence of online browsing and ordering. Market growth for the distributor segment was an estimated 2-3% for 2016. The IMF has projected US GDP to grow at 2.2% in 2017, 2.3% in 2018 and 1.9% in 2019.

Last updated on 02/03/2018

Key management

Kevin Lyons-Tarr, CEO
David Seekings, FD

Company address

7/8 Market Place
United Kingdom
+ 44 (0)207 299 7201
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