Interim Management Statement

RNS Number : 1620V

4imprint Group PLC

24 October 2014

 

4imprint Group plc

Interim Management Statement                                                                    24 October 2014

4imprint Group plc (the "Group"), the leading international direct marketer of promotional products, today issues its Interim Management Statement for the period from 29 June 2014 to 23 October 2014, incorporating information relating to the financial performance of the Group for its third quarter, being the period from 29 June 2014 to 27 September 2014, and the year to date (nine months) compared with the equivalent periods last year.

The Group continues to report strong organic growth. Revenue* for the third quarter was £66.13m, 16% ahead of last year. Year to date revenue* was £181.79m, 15% ahead of last year. The average year to date USD exchange rate was 1.67 (2013:1.55).

North American revenue* in US dollars for the third quarter was $106.14m, 25% ahead. Year to date revenue* was $291.24m, 24% ahead.

As in the first half, the growth was driven by the rate of increase in marketing spend compared to last year, capitalising on recent opportunities for enhanced online marketing. The number of orders received from existing customers compared to last year increased by 25% in the third quarter and by 22% year to date. Orders from new customers compared to last year also increased by 25% in the third quarter and by 22% year to date.

The UK Direct Marketing business achieved third quarter revenue* growth of 27%, with year to date revenue* at £7.39m, 23% ahead.

Financial position

On 17 September 2014, the Group announced that the Trustee of the 4imprint Group Pension Scheme had completed a pension buy-in transaction and a Company contribution of £13.73m was paid to the Scheme at that date. The buy-in is in line with the established strategy of reducing the risk of the Group's legacy pension scheme. Approximately 76% of the Scheme's total liabilities are now insured.

At the end of the third quarter the Group had net cash of £7.82m, compared to £26.13m reported at 28 June 2014, following the pension contribution above and regular second half outflows.

Change in presentational currency

The Board has decided to present the Group's financial statements in US dollars with effect from the 2014 year end results announcement due to be reported in March 2015. A substantial proportion of the Group's revenue and earnings originate in US dollars and the change will therefore more closely align external reporting with the profile of the Group. In future, dividends will be determined in US dollars and paid in Sterling at the exchange rate at the time the dividend is determined. More information, including restated H1 2014 and FY 2013 figures will be provided in an RNS in November.

Outlook

The Group has continued to achieve strong revenue growth, leaving it ahead of management expectations at this stage in the year and underpinning the Board's expectation that the Group will achieve a good result for the year as a whole.

^{*Revenue now includes delivery receipts and excludes discontinued operations. Prior periods have been restated for the impact of these items.}

For further information, please contact:

4imprint Group plc	MHP Communications
Tel:  + 44 (0) 20 7299 7201
John Poulter Chairman Gillian Davies Group Finance Director	Reg Hoare Tel: + 44 (0) 20 3128 8793 Katie Hunt Tel: + 44 (0) 20 3128 8794

 

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