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(Sharecast News) - White label merchandise and promotional products manufacturer 4imprint hiked its dividend by a third after a big jump in profits in 2023 on the back of market-share gains, though it did warn of a "softening" in the wider market towards the end of the year.
The company made "significant operational and financial progress" last year, according to chair Paul Moody, as the company lifted its final dividend to 150 cents a share, taking the total payout to 215 cents, up 34% on 2022.
Group revenues in the 12 months to 30 December were up 16% at $1.33bn, as order numbers climbed by 12% to 2.09m, helped by a 14% increase from existing customers to 1.56m. Meanwhile, some 311,000 new customers were added, up from 307,000 the year before.
The company did see some "softening demand patterns" in the promotional products industry in the second half which was "typical of a less buoyant general economic environment".
"Recently released research from ASI, a North American industry body, indicated that in the fourth quarter of 2023 year-over-year sales for industry distributors in aggregate were essentially flat, a marked deceleration as compared to the prior year. We continued to gain market share against this backdrop," 4imprint said.
"As the year progresses, we anticipate that 2024 will bring more normalised demand comparatives and an improved, more typical balance between new and existing customer activity."
Pre-tax profit for the year rose 36% to $140.7m, while the operating margin improved to 10.3% from 9.0%.
Looking at the current financial year, Moody said: "Trading results in the first two months of 2024 have been in line with both the board's expectations and consensus forecasts. We are confident that we will continue to take market share."
