12 November 2024
4imprint Group plc ("4imprint" or the "Group")
Update on Current Trading
4imprint today provides a scheduled update on the Group's trading and operations.
The Group has delivered a strong financial performance in difficult market conditions in the 10 month period up to the end of October 2024.
The Board is pleased to update the full year 2024 financial guidance given with the Interim results on 7 August 2024. Expectations for Group profit before tax remain unchanged and are within the current range of analysts' forecasts at just over $150m. Group revenue is expected to be around $1.37bn.
October year to date total order count was 2% higher than prior year. New customer orders were 9% below prior year to date, but encouragingly existing customer orders were up 6%, reflecting the quality of customers acquired under the new marketing mix. Combined with strong average order values at 2% above prior year, overall order revenue was 4% above the same time period in 2023.
The promotional products industry in our primary North American market has continued to present a challenging trading backdrop. Continuing uncertainty around economic conditions has translated into generally weaker levels of corporate confidence, compounded by specific macro factors over which the Group has no control, including elevated interest rates, severe weather events and the distraction arising from the US election cycle.
Although these factors have resulted in some pressure on revenue, performance across the remainder of the business has been very satisfactory. In particular, gross profit margin has remained strong at around 32% and the resilience and flexibility of the new marketing mix has enabled us to be agile in tailoring our marketing investment to the prevailing market conditions. The resulting double digit operating profit margin is a key factor underpinning our Group profit before tax performance.
With a cash balance of $137m at the end of October 2024, the Group remains highly cash generative and well financed.
Our experience is that less buoyant economic conditions represent a market share opportunity for 4imprint as our financial strength allows us to keep investing in the business and to take full advantage of the market recovery when it arrives.
The Board remains very confident in the Group's strategy, positioning and prospects.
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 |
|
David Seekings, Chief Financial Officer |
Eleni Menikou |
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