Revenue and underlying earnings up at 4imprint

Promotional direct marketer 4imprint Group announced its half year results for the six months to 2 July on Tuesday, with revenue improving 17% to $270.22m, from $231.03m.

The company reported underlying profit before tax growth of 18%, to $14.33m, while its statutory profit before tax fell 2% to $11.14m.

Underlying basic earnings per share were up 19% during the period to 37.28 cents, with the board declaring a dollar-denominated interim dividend per share of 16.32 cents, up 35%.

Its sterling-denominated interim dividend was declared at 12.3p, improving 59%.

4imprint’s board noted its organic revenue growth continued in both North America and the UK, with like-for-like trading activity 15% ahead of 2015.

It received a total of 529,000 orders during the period, with consistent re-order rates from existing customers.

The board described its operating cash generation as “robust” during the period, leading to $20m net cash at period end, and it confirmed the pension de-risking project had been substantially completed.

“The strategic objective of the business remains unchanged: to deliver attractive organic growth through continued investment in marketing, people and technology,” said 4imprint chairman John Poulter.

“This resulted in total orders received up 16% over the first six months of 2015 (14% on a like-for-like basis).

“Operating margin percentage remained stable, underpinned by reliable gross margins and well managed marketing expenditure,” Poulter said.

He added that the low capital requirements of the direct marketing business model contributed to the robust operating cash generation in the period.

Poulter said the reduced future contributions to the pension scheme, along with the ongoing cash generative nature of the group's trading operations, leave it in a strong financial position.

“In this context, the board has decided to enhance the group's dividend payments and has declared an interim dividend per share of 16.32 cents, an increase of 35% over 2015.

“It is anticipated that a similar rate of increase will apply to the 2016 final dividend, setting a higher base for the group's progressive dividend policy. Dividend cover remains healthy,” Poulter explained.