4imprint H1 'significantly impacted' by Covid-19

4imprint, a direct marketer of promotional products, said on Thursday that half-year pre-tax profit tumbled to nearly nothing as it was "significantly" impacted by the Covid-19 pandemic.

In the six months to 27 June, pre-tax profit slid to $0.03m from $19.45m in the same period a year ago, with revenue down 34% to $265.81m. Revenues in North America fell 34% to $260.54m and UK & Ireland revenues were 50% lower at $5.27m.

The company said it processed a total of 470,000 orders, down from 778,000 in 2019, with the period dominated by the spread of the coronavirus.

"From early March onwards the group experienced unprecedented disruption and challenges on many levels," it said. "Trading was severely affected as weekly order counts plunged from 13% ahead of prior year for the first two months of the year to a low point in mid-April of less than 20% of the 2019 comparative. Order counts have subsequently recovered to a current run rate of above 50% of prior year."

The company said it remains in a strong financial position with good liquidity, including a cash balance at the half year of $37.49m and an undrawn, committed bank facility of $20m.

"Although significant uncertainty remains over the likely duration and extent of the pandemic, the board is confident that the core strength of the group's highly flexible business model and competitive positioning will allow it to take advantage of the opportunity presented by a recovering market, leaving it well placed to re-establish the growth pattern of recent years."