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4imprint Group (FOUR)

Business description

4imprint is the leading direct marketer of promotional products in the US, Canada, the UK and Ireland. 97% of 2017 revenues were generated in the US and Canada.

Investment summary

4imprint’s year-end update indicated another very strong performance, with FY18 revenues ahead 18% – all organic. PBT will be at the top end of the market range with net cash $2.5m ahead of our modelled number at $27.5m. Our forecasts will be formally reviewed with the prelims in March, but we note that management’s revenue goal of $1bn by FY22 now requires a CAGR of 7.9% over the intervening period, well below historical levels. The brand awareness programme implemented in FY18 has clearly helped stimulate growth and the group is accelerating investment in support. The organic growth record, high cash conversion and cash-rich balance sheet all support the current rating, with further upside potential.

Last updated on 01/02/2019

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 25.0 14.8
2017A 627.5 45.1 42.5 107.7 22.9 15.5
2018E 725.0 48.2 45.1 126.9 19.5 15.1
2019E 797.5 55.4 52.3 146.1 16.9 12.7

Last updated on 25/01/2019

Latest research

Boxing clever

Outlook | Media | 24/01/2019

Branding awareness

Update | Media | 01/11/2018

Market leader

Update | Media | 31/07/2018

Continued momentum

Update | Media | 08/05/2018

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

Latest video

Bitesize briefing - 4imprint

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 is reportedly growing at around 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 01/02/2019

Key management

Kevin Lyons-Tarr, CEO
David Seekings, FD

Company address

7/8 Market Place
London
W1W 8AG
United Kingdom
+ 44 (0)207 299 7201
View website