Interim Management Statement

RNS Number : 0945R

4imprint Group PLC

31 October 2011

 



4imprint Group plc

Interim Management Statement                                                                         31 October 2011

The Board of 4imprint Group plc, the international promotional products group, issues its interim management statement for the period from 3 July 2011 to 29 October 2011 incorporating information relating to the financial performance of the business for the third quarter, being the period from 3 July 2011 to 1 October 2011.

Group revenue for the third quarter at £58.93m was 12% ahead of prior year (14% at constant currency). Year to date (39 weeks ended 1 October 2011) revenue was £162.56m, 10% ahead of prior year (13% at constant currency).

4imprint Direct Marketing (67% of Group revenue)

Revenue in 4imprint Direct Marketing has continued its trend of strong organic growth. North American revenue in quarter three was US$60.22m, 18% ahead of prior year and year to date revenue at US$167.52m also increased by 18%, compared to the circa 6% increase in the US promotional products market.

Quarter three customer acquisition and retention rates have continued the positive progress reported in the first half of the year. Year to date, over 96,000 new customers were acquired in North America, well ahead of prior year.  Orders from previously acquired customers increased by 22% over prior year as customer repurchase rates remained consistently strong.  For the fourth consecutive year, the US business has been named in the top 10 best medium sized companies to work for in the USA.

Year to date total division revenue was £108.29m, 11% ahead of prior year. The average US$ exchange rate for 2011 year to date was 1.61 (2010:1.53).

Brand Addition (28% of Group revenue)

Brand Addition total revenue in quarter three was £17.22m, 14% ahead of prior year.  Year to date total revenue is £45.73m, 13% ahead of prior year.  Some of this increase (around £1.2m) represents a change in the timing of customer seasonal purchases relative to 2010. There was continued growth in both new and existing customers.

SPS (5% of Group revenue)

Total SPS revenue at £3.56m in quarter three was 8% below prior year, whereas year to date total revenue at £10.75m was 16% below prior year.

Pension ETV exercise

The pension Enhanced Transfer Value exercise was completed in October.  Based on the accounting valuation, the pension scheme assets and liabilities have each been reduced by around £10m as a result of this exercise. The total cash cost to the Company of this exercise was £1.5m.

Outlook

The Board anticipates that 2011 will be a further year of good progress.

For further information please contact:

John Poulter                 Chairman                                  [phone]

Gillian Davies               Group Finance Director             [phone]

 

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