Interim Management Statement

RNS Number : 6576C

4imprint Group PLC

03 May 2012

 



3 May 2012

4imprint Group plc

AGM and Interim Management Statement

4imprint Group plc, the international promotional products Group, is today holding its Annual General Meeting and providing an interim management statement for the period from 1 January 2012 to 2 May 2012, incorporating information relating to the performance of the business for the period from 1 January 2012 to 31 March 2012.

Group revenue for the quarter from continuing operations was £37.48m, 15% ahead of prior year.

4imprint Direct Marketing

Revenue in 4imprint Direct Marketing for the first quarter was £33.98m, 15% ahead of prior year. North American revenue in quarter one was US$51.05m, 14% ahead of prior year. The average USD exchange rate in the quarter was $1.57 (2011:$1.60).

In North America, orders from previously acquired customers increased by 21% over prior year as repurchase rates remained consistent with those achieved in the prior year. New customer acquisition was also consistent with marketing activity and prior year yield. Over 30,500 new customers were acquired during the quarter. The UK Direct Marketing operation showed positive progress with sales 6% ahead of the prior year period.

SPS

Total revenue in SPS was £3.83m, 10% ahead of the first quarter of the prior year. Orders for both manufactured and purchased products showed the benefit of more focused sales and marketing activity.

Brand Addition sale

The conditions relating to the sale of Brand Addition were met in March and completion took place on 23 March 2012. Initial gross consideration of £21.49m, after adjusting for the estimated value of working capital and net cash in the business at the date of sale, was received. An unconditional, deferred payment of £1.25m is due for receipt in March 2013.

£11.4m of the sale proceeds received were transferred to the legacy pension fund on 2 April 2012. This amount will initially be held in cash, whilst the Company and the Trustee investigate pension risk reduction options.

Board

In accordance with best practice, all directors are proposed annually for re-election. During 2012, both Ian Brindle and Nick Temple will have served for nine years and they will retire from the Board during the coming months. An appointment process for two new Non-Executive Directors is well advanced.

Outlook

The positive momentum demonstrated by the business over the course of last year has continued into 2012 and, subject to continued stable economic conditions in US, the Board anticipates further organic growth in line with its goal of doubling the Direct Marketing business over the next five years.

For further information please contact:

John Poulter, Chairman                                    

Gillian Davies, Group Finance Director

Tel: + 44 (0) 20 7299 7201

About 4imprint Group plc

4imprint Group plc is a UK listed promotional products Group with two operations: 4imprint Direct Marketing and SPS.

4imprint Direct Marketing supplies an extensive range of promotional products and branded apparel to a wide variety of businesses and organisations throughout the USA, Canada, UK and Ireland.

SPS supplies promotional and advertising products to distributors within the promotional products industry who then sell these products on to end users.

 

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