Update on Current Trading
4imprint today provides an update on the Group’s trading and operations.
Encouraging progress has been made in dealing with the continuing disruptive effects on the business of the COVID-19 pandemic. In the Group’s half year results, announced on 13 August 2020, we noted 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%. Recent experience has seen further improvement, with average weekly order intake running at just above 60% of prior year level over the last four weeks. Average order values have continued to run higher than historical comparatives, resulting in average weekly revenue over the same four week period of around 65% of prior year.
The apparel category has performed well compared to other categories during the pandemic. 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%.
We continue to acquire new customers at a relatively promising rate, with the new-to-existing customer ratio running in a stable band. This customer activity has been driven by a careful and precise re-introduction and re-allocation of marketing funds, particularly towards our 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 Group remains in a strong financial position, with a cash balance of $40.1m at the October 2020 accounting month end 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.
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 8549 / +44 (0) 7585 301464