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)
2015A 497.2 35.5 33.5 87.5 30.2 24.1
2016A 558.2 40.8 38.4 98.7 26.8 16.0
2017E 627.5 45.4 42.2 105.1 25.2 17.6
2018E 681.0 49.3 46.1 126.3 21.0 15.6

Last updated on 17/01/2018

Latest research

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

Q1 IMS – trading on track

Flash note | Media | 04/05/2012

Investment summary

A continued strong performance in Q417 delivered 12% revenue growth in FY17 vs FY16, a shade ahead of our previous forecast. We see good top-line momentum into FY18e as the group takes further share in its large and fragmented market, benefiting from its targeted marketing. US taxation reforms will kick in for FY18 and our EPS forecast is lifted by 10%. Cash resource of $30.7m at end FY17 allows for an increased dividend with plenty of scope for additional investment as the business continues to scale. Our new FY19e numbers show further good earnings progress, with the valuation rating coming in to more attractive levels.

Last updated on 17/01/2018

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 2.4% in 2017, 2.1% in 2018 and 2.0% in 2019.

Last updated on 13/12/2017

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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