US Tax Reform

RNS Number : 2812B

4imprint Group PLC

09 January 2018

 

4imprint Group plc

9 January 2018

Impact on 4imprint from US Tax Reform

4imprint Group plc (the "Group"), the leading international direct marketer of promotional products, today provides guidance on the expected impact on the Group from recent US tax legislation, ("US Tax Reform").

Given that most of 4imprint's operations (97% of Group revenue) are based in the USA, the Board expects that US Tax Reform will have a beneficial impact on the Group's prospective financial position.

For the year ended 30 December 2017, no change is expected to the Group effective tax rate previously guided at c.30%. The revaluation of relevant non-cash deferred tax items at the new US corporate tax rate is not expected to produce a material effect on the Group's 2017 financial statements.

For the 2018 financial year and beyond, however, the reduction in the Federal tax rate from 35% to 21% is expected to have a positive impact on the Group's financial results. Initial projections indicate that the Group's effective tax rate would decrease from c.30% in 2017, settling in the low 20's% from 2018 onwards. This would result in a beneficial impact on earnings per share calculations. In addition, substantially all of the rate change is likely to translate into lower tax payments, thereby enhancing the cash generation capability of the Group.

The final US Tax Reform legislation is extensive and complex, and the full implications for the Group are still being analysed. It is anticipated that more detailed guidance will be given at the time of the announcement of the Group's final results in early March 2018. In the meantime, the Group plans to issue its usual January trading update on 17 January 2018.

For further information, please contact:

4imprint Group plc                                                                          MHP Communications

Tel: + 44 (0) 20 7299 7201                                                              Tel: + 44 (0) 20 3128 8794

Kevin Lyons-Tarr, Chief Executive Officer                                    Katie Hunt

David Seekings, Chief Financial Officer                                        Nessyah Hart

Note: This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

 

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