Strong Year for 4imprint

Another impressive performance has been reported with the publishing of 4imprint Group plc's final results for the period ending 31 December 2011.

Total Revenue was £158.82m (2010: £143.72m), an increase of 11%.  The North American Direct Marketing revenue was US$225m (2010: US$190m), up 18%.  Underlying operating profit was £8.49m (2010: £6.22m), an increase of 36%, resulting in Profit before tax, after exceptional goodwill impairment of £4.74m, was £0.36m (2010: £3.87m).  Net cash at year end was £5.46m.

The Board’s strategy is the pursuit of further development and profitable organic growth of the Direct Marketing business, whilst driving the recovery of the SPS business and taking such steps as appropriate to reduce the burden of the legacy defined benefit pension scheme. The proceeds from the conditional sale of Brand Addition will enable the Group to make further moves in this direction.

4imprint Direct Marketing delivered another excellent performance with revenue and underlying operating profit in North America in local currency increasing by 18% and 30% respectively, compared with the prior year. All key performance indicators improved and over 450,000 orders were fulfilled. More than 120,000 new customers were acquired. The UK business was more subdued with sales increasing by 2% to £6.05m against a more difficult market backdrop.

SPS achieved total revenue at 12% below prior year, but the fall in activity in the second half of 2010 has now stabilised. Consistent gross margins together with overhead reductions have restored profitability even at the lower levels of revenue. Underlying operating profit, although still modest was more than four times that of the prior year. A restructured management team and a greater focus on new products and customer service, together with some capital expenditure are targeted to improve the situation further.

John Poulter, Chairman said: “The progress reported at the half year has continued. Strong growth in Direct Marketing on the back of further market share gains in North America; SPS now establishing an improving trading trend; the subsequent announcement of the conditional sale of Brand Addition and a pension enhanced transfer value exercise were all positive moves towards greater focus on 4imprint Direct Marketing and reducing the legacy pension risk. With a strong platform for further growth and an ungeared balanced sheet, the Group is well positioned to make further progress in 2012.”

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