4imprint posts rise in FY profits but cautious on outlook; shares slide

(Sharecast News) - 4imprint tumbled on Wednesday as it reported a rise in full-year profit and revenue but struck a cautious note on the outlook, warning about the potential impact of US tariffs. In the year to 28 December 2024, the direct marketer of promotional products said pre-tax profit rose 10% to $154.4m on revenue of $1.37bn, up 3% on the previous year. Operating profit was $148.1m, up 9%.

Basic earnings per share increased to 416.3 cents from 377.9 cents.

The company said it delivered a "resilient" trading performance in a "cautious" macroeconomic environment.

Chairman Paul Moody said: "The group delivered a strong financial performance in 2024, continuing to outperform the promotional products market as a whole and thereby taking further market share.

"In the first two months of 2025 revenue at the order intake level was slightly down compared to the same period in 2024, reflecting continued uncertainty in the market. It is possible that market conditions, including potential tariff impacts, may continue to influence demand in 2025. From our experience, however, as business sentiment improves, demand for promotional products increases as does our ability to gain market share.

"Despite a challenging near-term environment, our view of the prospects of the business remains unchanged. The board is confident in the group's strategy, competitive position and growth opportunity."

4imprint also said on Wednesday that it had appointed Michelle Brukwicki as its new chief financial officer with effect from 1 May, succeeding David Seekings, who is leaving after 28 years with the company.

At 0945 GMT, the shares were down 12.8% at 4,176.32p.

Russ Mould, investment director at AJ Bell, said: "Promotional products business 4imprint does nearly all of its business in the US and its latest numbers offer evidence of uncertainty caused by the new administration's tariff policy.

"4imprint sells a wide range of promotional products like branded bags, pens and stationery to companies in North America, but rather than manufacturing the goods it sells, it outsources the work to third parties which means it has limited capital needs. Despite being a leading player, it also has a relatively small share of what is a fragmented market.

"Sentiment towards 4imprint and its performance have always been closely tied to US GDP so speculation about a recession in the world's largest economy is unhelpful.

"This has been reflected in recent share price weakness and today's results put the stock under further pressure as the outlook statement confirmed the market's fears.

"The company noted that orders were down in the first two months of 2025 compared with the same period in 2024 and said it was possible market conditions and specifically 'tariff impacts' could persist through the year.

"4imprint might hope that should tariffs work as intended and domestic US businesses prosper, it will do so too, but for now uncertainty reigns."