4Imprint Regulatory News (FOUR)

10 Nov 2009 07:00



4imprint Group plc

Interim Management Statement

The Board of 4imprint Group plc issues its interim management statement for the period 28 June 2009 to 26 September 2009. 

Group sales for the third quarter at £41.16m were 3% below prior year. Sales for the first three quarters of 2009 at £122.12m compare with £120.50m for the same period in 2008. At constant currencies, sales in the first three quarters were 13% lower than the same period last year. 

Sales performances in each of the three Divisions of the Group were as follows:

(a) Direct Marketing Division

Quarter three sales at £27.97m were 9% ahead of the same period in 2008 whilst cumulative sales at £81.69m were 19% ahead of 2008. Sales in US dollars were 5% below prior year in the quarter.

In the North American business the number of orders was up by 2% for the first three quarters, reflecting strong support from our existing customers, and additional customers secured through our investments in prospecting. However, average order values were 7% lower, (reflecting our customers' cost reduction initiatives) which more than offset the benefits from higher order volumes. Sales in US dollars at $119.93m for the first three quarters were down by 5% on last year. This factor, coupled with the lower yield from prospecting, meant that profitability was lower than in the same period in 2008. 

Further refinement of prospecting methods and technologies coupled with extensions to our product range has been and will be a continuing focus, as we deal with the recessionary environment.

In the UK business, the recessionary pressures were felt significantly through the nine months of the year. However, with maintained prospecting investment, notwithstanding a 5% reduction in average order value, total sterling sales for the first three quarters were 6% ahead of 2008. 

(b) End User Division

Divisional sales for quarter three at £9.74m were 23% below the same period last year, and cumulative sales at £30.12m were also 23% below the same period in 2008. The general trading climate remains stable. 

Sales in each of the businesses were as follows:

Brand Addition sales in quarter three were 26% below the same period last year, an improvement on the first half performance when sales were 31% below last year. Order intake month on month has shown gradual improvement and in October order intake reached prior year levels for the first time this year. 

At PPI, quarter three sales were 14% below quarter three last year 

At Kreyer, quarter three sales in sterling were 27% below last year.

A key focus of the Division is the growth of its customer base and a number of new opportunities have been secured this year. 

(c) Trade Division 

Quarter three sales at £4.24m were 13% below the same period last year, whilst sales for the first three quarters at £12.59m were 17% below last year. 

During the year, the Division made further improvements in its cost base, merchandise selection and development, and customer service. The Blackpool facilities have substantial capacity to support sales growth, the securing of which is now the prime focus of the Division.

Outlook

The first ten weeks of quarter four running up to the Christmas holiday period, are generally the strongest in the year for sales revenues. October sales and order inflows are modestly encouraging. 

For further information, please contact:

Ken Minton

Executive Chairman

Gillian Davies

Group Finance Director