4Imprint makes its mark

Interim results from promotional products producer 4imprint proved a pleasant surprise as the company's revenue grew faster than the markets it serves.Group revenue in the first half of 2010 at £95.18m was 18% ahead of the same period last year. Underlying operating profit at £4.46m was almost three times the level of the first half 2009. All three of the group's divisions grew revenue and profit, with the North American direct marketing business showing a very strong performance with revenue 20% ahead in US dollars and underlying operating profit more than three times that of the first half 2009.Broker Panmure Gordon had forecast operating profit of £4.0m. The broker said the interim dividend was also better than expected at 4.7p, up 11% on last year's interim dividend and marginally ahead of Panmure's forecast of 4.6p.The direct marketing division's operating profit improved to £3.57m from £1.08m while the end user division's operating profit moved up to £`1.52m from £1.35m. The trade division moved back into the black with an operating profit of £0..17m versus a loss of £0.16m the year before."The markets we serve are recovering but the board remains cautious about the strength and durability of this recovery. However, the initiatives we have taken and the opportunities which exist in each division, leave us well positioned to secure further progress in the second half," claimed outgoing executive chairman Ken Minton.The company made a pre-tax profit of £2.80m versus a loss of £0.81m in the first half of last year. The group's net debt at 3 July 2010 was £4.49m, down from £7.91m at the end of June 2009 but up from £3.13m at the beginning of the year. Panmure Gordon raised its full year earnings on the back of the figures and also upped its target price to 314p from 257p. 4Imprint