4imprint H1 FY operating profits seen 'materially above' estimates

Promotional products group 4imprint said on Tuesday that full-year operating profits were now expected to be "materially above" consensus estimates amid "strong" year-to-date trading momentum.

As a result of "encouraging trading", 4imprint said it was confident that it will meet or exceed its target of $1.0bn in group revenues in the 2022 financial year.

4imprint stated total first-half orders in its primary North American business were up 14% against 2019's pre-Covid performance and average order values were also 14% above the same comparative, resulting in overall demand revenue of 30% above 2019's interim performance.

The FTSE 250-listed group also said expectations for full-year 2022 operating profits had now "improved substantially", with the company now expecting full-year operating profits to be "materially above" consensus analysts' forecasts and no less than $75.0m.

"This favourable profitability dynamic results from revenue volume growth combined with leverage in the business model driven by further gains in the productivity of our marketing programme, gross margins remaining relatively steady in an inflationary environment, and operational gearing over the cost base," said 4imprint.

"The board is aware that, whilst reflecting current operational and trading visibility, these improved expectations for the group's financial performance come in the context of considerable uncertainty in the form of geopolitical and broad economic factors, including the threat of recession. These factors could affect the group's performance during the remainder of 2022."

Reporting by Iain Gilbert at Sharecast.com