Last checked at 27 Apr 2010 11:00
4imprint Group plc
Chairman's Statement - AGM
As Shareholders will be aware, trading conditions in 2009 were difficult for business generally. In the promotional products sector our markets in both North America and Europe were reduced in size by 20% as customers sought to reduce costs. Our response to these conditions comprised several initiatives:
(a) In the Direct Marketing Division, which represents two thirds of the Group's sales, we maintained the level of investment in our catalogue prospecting programmes, which are an essential feature of our sales growth strategy. Although the yield from these investments was lower than in previous years, we were still able to broadly maintain sales levels in a market whose size was 20% down on 2008; a significant increase in our market share. In North America, our business is the leading Direct Marketing company in the promotional products market.
(b) In the End User Division, our clients which are mainly large companies in the financial, technology and commercial sectors reduced their take of our products, as they cut their own costs in the face of the recession. We responded by running our business under very lean conditions and cut overhead costs significantly. In addition, we stepped up our search for sales opportunities and were successful in winning several new and important contracts particularly in the second half of 2009.
(c) In the Trade Division, which serves principally the UK distributor market, sales fell by 15%, but this was significantly less than the reduction in market size which is estimated to have declined by over 20%. To mitigate the effect of the downturn, we cut costs substantially whist enhancing the support and service to our customers.
These and other actions throughout the 4imprint Group helped to offset the adverse effect on profitability of the recession. After a poor first half, the second half performance improved considerably.
The full benefit of all these initiatives and improvements is now starting to become evident, as our markets begin to recover. Shareholders will have seen our statement regarding this year's first quarter sales, published a few weeks ago, and advising Shareholders that in this first quarter we have seen growth in all three divisions. I am pleased to say that this growth has continued into April. Furthermore, the cost saving actions and new customer acquisition initiatives in the Divisions are clearly increasing profitability.
Whilst it is still early in this market recovery period, the Board believes that if these conditions continue your Company will make significant progress this year.
Finally, as Shareholders are aware, I will step down from the Chairmanship and from the Board on 31 August 2010. I have been Chairman since July 2004, and Shareholders have seen during this period that 4imprint Group has secured considerable growth in sales and share value. This has been achieved by the efforts and skills of all employees in the Group and I thank them sincerely for such great commitment.
My successor as Chairman is Mr John Poulter who will join the Board on 1 May 2010 and assume the Chairmanship on 1 September 2010. John has experience in the industrial and commercial world both as a Director and as a Chairman. I commend him to you with the confidence that he will lead the Company into further growth and prosperity.
- Ends -
For further information, please contact:
Ken Minton
Executive Chairman
4imprint Group plc Tel. +44(0) 207 299 7201
Gillian Davies
Group Finance Director
4imprint Group plc Tel. +44(0) 207 299 7201