Promotional products distributor 4imprint Group has seen pre-tax profits leap by 50 per cent in the six months to June 30.
4imprint posted a 17 per cent rise in sales from £75.8m to £88.4m, while pre-tax profits grew from £1.6m to £2.4m, boosted by the £24m sale of Brand Addition in March.
The Manchester UK based firm, highlighted its growing market share in a growing market with USA growth to play a key part in future development of the business.
Revenues from the direct marketing division, which makes up 92 per cent of group sales, were boosted by 15 per cent in the UK thanks to increased marketing activity, while in the US revenues were up 14 per cent.
The division’s revenues grew from £69.4m to £81.3m.
The SPS division, which manufactures promotional products for distributors in the UK and Europe, saw revenues grow eight per cent from £7.2m to £7.8m.
The group will pay a dividend of 5.25p a share, up from 5p.
· Revenue up 17% at £88.36m (H1 2011: £75.84m)†
· Underlying* operating profit up 21% at £3.39m (H1 2011: £2.80m)†
· Underlying* profit before tax up 26% at £3.32m (H1 2011: £2.62m)
· Profit before tax up 50% at £2.46m (H1 2011: £1.64m)†
· Net cash £11.39m, prior year end £5.46m
· Underlying* basic earnings per share up 25% at 8.61p (H1 2011: 6.89p)†
· Basic earnings per share, including the profit on disposal of Brand Addition, was 38.79p (H1 2011: 10.91p)
· Dividend per share 5.25p, an increase of 5%
· 4imprint Direct Marketing
· Continued growth in market share
· More than 274,000 orders received, 17% ahead of half year 2011
· Underlying* operating profit up 12% at £3.95m (H1 2011: £3.52m)
· SPS - 8% revenue growth and underlying* operating profit £0.35m (H1 2011: £0.10m)
· Brand Addition sale completed on 23 March 2012
· £11.40m of sale proceeds deposited in a cash escrow account for pension scheme risk reduction
† Continuing operations * Underlying is before share option charges, exceptional items and defined benefit pension charge
John Poulter, Chairman said:
“The first half of this year has been a period of substantial positive change for the Group. Brand Addition has been sold, enabling the Group to strengthen its balance sheet, to focus on the continued organic growth of 4imprint Direct Marketing and SPS and to reduce the risk of the pension deficit.
We are well positioned to take advantage of the growth opportunities presented by 4imprint Direct Marketing’s large and highly fragmented market and, notwithstanding any significant macroeconomic changes to the markets it serves, the Group remains on track for a continued good performance in the second half year.”