Update on Current Trading
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
4imprint today provides an update on the Group’s trading and operations.
At the time of the announcement of the Group’s 2021 financial results on 16 March 2022, we noted that trading performance in the first few weeks of 2022 had been encouraging. We are pleased to update the market that we have continued to see excellent demand activity, resulting in a very strong financial performance in the first four months of the year.
During the period January to April 2022 total order counts in the primary North American business were 11% above the 2019 comparative, (the most recent ‘normal’ year). Average order values were 14% above 2019, resulting in overall demand revenue of 27% above the same comparative. New customer acquisition has remained encouraging, and the retention statistics reliably reflect the growing customer file.
This building momentum in trading means we are now on track in the 2022 financial year to achieve our long-held target of $1bn in Group revenue. This places our revenue expectations for the year above the upper limit of the range of analysts’ forecasts, and well above analysts’ consensus. Management’s expectation for full year 2022 operating profit is also now above the highest analyst forecast in the market, driven by: (i) the revenue volume gains noted above; (ii) the productivity of the reconfigured marketing portfolio; (iii) relatively stable gross margins; and (iv) operational gearing relating to semi-variable and fixed costs in the business.
The Board is conscious that only four months of the year have elapsed and that current geo-political and broad economic factors may well affect the Group’s performance during the balance of the year. In particular, we are cognisant of potential issues relating to possible further COVID variants, supply chain disruption, inventory availability, increasing cost of product, availability and cost of labour, the effect of inflation on our customers’ budgets and the general threat of economic recession. The financial expectations outlined above take into account our current visibility on these factors.
The trading performance in the first four months of 2022 gives the Board increased confidence in the Group’s strategy, business model and competitive position.
The person responsible for arranging the release of this announcement on behalf of 4imprint Group plc is David Seekings, its Chief Financial Officer.
For further information, please contact:
4imprint Group plc
Tel. + 44 (0) 20 3709 9680
Kevin Lyons-Tarr, Chief Executive Officer
David Seekings, Chief Financial Officer
Tel. + 44 (0) 20 3128 8794