4Imprint Regulatory News (FOUR)

17 Jun 2009 14:23



4imprint Group plc

Trading update

17 June 2009 

The Board of 4imprint Group plc ("the Group") issues a trading update for the second quarter of 2009 in advance of the announcement of its results for the six months ended 27 June 2009, scheduled to be released on 4 August 2009.

Sales, in US dollars, in the Direct Marketing Division for the first half are expected to be around 5% below the prior year. Total order count year to date is up 1% over prior year, which included a particularly strong quarter two 2008. Orders from existing customers, a key statistic, are 7% ahead. Average order values are below prior year. Operating profit in quarter two improved over quarter one; however it is still below the prior year due to lower prospecting yields and average order values. The benefits of the sustained marketing investment should be realised in the second half as the business continues to grow its market share.

Sales in the End User Division for the first half are expected to be around 24% below the prior year. The impact of this lower demand on operating profit has been partly mitigated by cost reductions implemented at the end of 2008 and in the first quarter of 2009. 

The Trade Division is experiencing a lower level of demand compared to the prior year. Sales are expected to be about 21% below first half 2008; however the lower cost base established at the end of 2008 has partly offset the reduction in profitability.

Consequently, the Group results for the first half of 2009 will be below the prior year and the Board expects a modest level of operating profit before pension and share option charges. 

The Group has a modest level of net debt and maintains tight control over its cash and working capital resources, with moderate levels of capital investment being made to position the business for growth when markets improve.

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