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(Alliance News) - 4imprint Group PLC on Tuesday posted higher annual profit, with a particularly sharp revenue rise in North America, and it is on track to meet its USD1 billion revenue target ahead of schedule.
Shares in 4imprint were up 11% at 3,030.00 pence in London in morning trading.
The FTSE 250-listed marketing firm reported a USD54.0 million pretax profit for its financial year ended December 28, up 22% from USD44.3 million the previous year.
This primarily resulted from 4imprint's 17% revenue rise to USD860.8 million from USD738.4 million, with all revenue growth organic. This included 17% revenue growth in North America to USD839.3 million from USD714.6 million, but a 9.6% UK and Ireland revenue decline to USD21.6 million from USD23.9 million.
According to Chair Paul Moody, the revenue performance was reflective of the company's "increasing share in a large but still very fragmented market".
The company declared a 59.00 cents per share final dividend, taking the annual payout up 20% to 84.00 cents from 70.00 cents.
4imprint aims to achieve USD1 billion of revenue by 2022 and said its 2019 trading momentum has put it in a "good position" to achieve this goal earlier than expected.
Moody said: "Trading results in the first two months of 2020 have been in line with the board's expectations. We have a clear strategy and a focused business model geared towards a market opportunity that remains highly attractive. We will continue to invest in the business to underpin further organic revenue growth towards and beyond our target of USD1 billion by 2022. Notwithstanding the fluid situation regarding covid-19, the outlook for 4imprint is positive."
He also said 4imprint is "closely monitoring the situation" around the coronavirus outbreak, which started in China and has spread rapidly, but damage to 4imprint "has so far been minimal". This is because, while 60% of its blank stock originates in China, a majority of 4imprint's domestic suppliers had placed orders before the lunar new year holiday, when the outbreak first became widely known.
However, persistent production restrictions in China could eventually disrupt the firm's supply chain.
"Should the virus become a global pandemic, the potential effect on our business would expand beyond the supply chain," Moody said.
By Anna Farley; annafarley@alliancenews.com
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