4imprint today provides a scheduled update on the Group’s trading and operations.
In our Interim Report dated 9 August 2023, we highlighted the Group’s very strong first half trading performance compared to the same period in 2022. Further good progress has been made, both operationally and financially, up to the end of October 2023.
As such, the Board updates the 2023 full year guidance given with the Interim results: Group revenue is expected to be slightly above $1.3bn (unchanged) and Group profit before tax is now expected to be not less than $130m (previously $125m).
As anticipated, the percentage increases in demand activity and revenue compared to 2022 have moderated as the year has progressed. This reflects the contrast between the weak comparatives from the first quarter of 2022 and the significantly more challenging year-on-year comparatives arising from April onwards driven by the recovery from the pandemic.
As a result of these factors, October year to date order counts in the primary North American business were 13% above 2022. Over the same period, average order values remained strong at 1% above 2022 levels, resulting in overall demand revenue for October year to date at 15% higher than the corresponding period in 2022. In recent weeks we have seen some evidence of softening demand patterns typical of a more cautious macro-economic environment. That said, our experience is that a less buoyant economic outlook represents a market share opportunity for 4imprint as our financial strength allows us to keep investing in the business and to take full advantage of a market recovery.
With a cash balance of $95m at the October 2023 accounting month end, after funding the Interim dividend ($17.7m) in September 2023, the Group remains in a very strong financial position.
Looking forward, whilst cognisant of the uncertain macro-economic climate in its primary markets, the Board remains highly confident in the Group’s strategy, positioning and prospects.
For further information, please contact:
4imprint Group plc
Tel. + 44 (0) 20 3709 9680
Kevin Lyons-Tarr, Chief Executive Officer
David Seekings, Chief Financial Officer
MHP Group
Tel. + 44 (0) 7884 494112
Katie Hunt
Eleni Menikou