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17 Jun 2009 14:23
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4imprintΒ Group plc
Trading update
17 June 2009Β
The Board of 4imprint Group plcΒ ("the Group")Β issues aΒ trading updateΒ forΒ the second quarterΒ of 2009Β in advanceΒ ofΒ theΒ announcementΒ of its results forΒ theΒ six months endedΒ 27 June 2009,Β 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 aroundΒ 5%Β 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 fromΒ existing customers, a key statistic, areΒ 7%Β ahead. Average order values are below prior year.Β Operating profit in quarter two improved over quarterΒ one;Β however it is still belowΒ theΒ prior year due to lower prospecting yields andΒ averageΒ 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 theΒ first half are expected to beΒ aroundΒ 24%Β belowΒ theΒ prior year. The impact ofΒ thisΒ lower demandΒ on operating profitΒ has been partly mitigatedΒ by cost reductionsΒ implementedΒ at the end of 2008 andΒ in the first quarter of 2009.Β
The Trade DivisionΒ is experiencingΒ a lower level of demand compared to the prior year. Sales are expected to be aboutΒ 21%Β below first half 2008;Β howeverΒ the lower cost base established at the end of 2008 hasΒ partly offset the reduction in profitability.
Consequently,Β the Group results for theΒ first half ofΒ 2009 will be belowΒ theΒ prior year andΒ the BoardΒ expectsΒ a modest level ofΒ operating profit before pension and share option charges.Β
The GroupΒ hasΒ a modest levelΒ of net debt andΒ maintainsΒ tight control over its cash and working capital resources,Β withΒ moderateΒ levelsΒ ofΒ capital investment being made to position the business for growth when markets improve.
For further information please contact:
|
Gillian Davies Group Finance Director |
Tel:Β +44 (0)20 7299 7201 |
Β
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