4imprint reports bumper profit as firm targets market share expansion
Promotional product manufacturer 4imprint has reported a 32 per cent jump in profit for 2023 as the firm looks to continue expanding its market share.
In its annual results, the firm reported receiving 2.1m orders in 2023, compared to 1.9m the year before, as it acquired 311,000 new customers.
4imprint’s operating profit for 2023 was $136.2m (£106.6m), compared to just $102.9m (£80.5m) in 2022.
The firm’s share price is up 0.2 per cent this morning on the results.
In its results, the firm also noted that its net operating margin was above 10 per cent, which it said reflected stability in supply chain conditions, an improvement in year-on-year gross margins and some operational leverage.
Peel Hunt analysts Jessica Pok and Melanie Yang agreed, describing the high operating margin of the group as a “testament that the brand marketing strategy is bring a step-change to the business”.
The analysts described the results as “another year of strong growth”, pointing to the firm’s outperformance of the market, as well as its strengthening cash reserves.
The firm reported that cash and bank deposits had reached $104.5m (£81.7m), up from $86.8m (£67.9m) in 2022.
“Despite market uncertainties, we believe 4imprint is set to capture more market share, supported by its rising brand awareness,” the analysts said, reiterating their Buy rating for the stock.
Meanwhile, trading in the first two months of 2024 had been in line with management and market expectations, and the firm was now looking to start a $20m (£15.6m) project to expand capacity at its Oshkosh distribution centre.
Chair Paul Moody said the firm had made “significant operational and financial progress in 2023, reflecting a clear strategy and a highly resilient business model”.
He added: “Trading results in the first two months of 2024 have been in line with both the board’s expectations and consensus forecasts. We are confident that we will continue to take market share.”