4imprint sees 'encouraging progress' in post-lockdown recovery

Promotional products supplier 4imprint updated the market on its trading on Friday, reporting “encouraging progress” in dealing with the ongoing disruptive effects of the Covid-19 pandemic.

The FTSE 250 company had said in its half-year results in August that weekly order intake had recovered to a run rate of just above 50% of prior year from a low in April of less than 20%.

It said recent experience had seen further improvements, with average weekly order intake running at just above 60% of the prior year level over the last four weeks.

Average order values continued to run higher than historical comparatives, resulting in average weekly revenue over the same four week period of around 65% of the prior year.

“The apparel category has performed well compared to other categories during the pandemic,” the board said in its statement.

“Decorated apparel unit volume at the Oshkosh Distribution Centre is now running at close to prior year level and, as a result, the utilisation of permanent labour capacity has now returned to 100%.”

The firm said it was acquiring new customers at a “relatively promising” rate, with the new-to-existing customer ratio running in a stable band.

That customer activity had been driven by “a careful and precise” reintroduction and reallocation of marketing funds, particularly towards its brand marketing programme.

“Every effort is being made to manage the effects of the pandemic throughout our operations.

“Strong safety and social distancing protocols are being observed in all of our facilities.

“Wherever practical, our office-based team members are still working from home.”

The board said the company was in a “strong” financial position, with a cash balance of $40.1m at the end of October, and no debt.

“Although we have seen encouraging signs in recent weeks, the inherent uncertainty resulting from the Covid-19 situation means that it is too early to provide any forward guidance at this point.

“We do, however, remain very confident in the group's strategy, business model, competitive positioning and ultimately our ability to deliver sustainable value for all stakeholders.”

At 0842 GMT, shares in 4imprint were down 2.59% at 2,070p.