4imprint Group Plc · LSE:FOUR
4imprint — FY2009 Earnings Presentation
22 slides from 4imprint's earnings presentation, March 2010
Slide 1: Results presentation for the 53 weeks ended 2 January 2010
Results presentation for the 53 weeks ended 2 January 2010
Slide 2: Index
Index 1 Highlights 2009 by Division 10 Segmental analysis Background 11 Quarterly sales graph (2008, 2009) 2 Promotional products market 12 Direct Marketing Division 3 Direct Marketing Division 13 End User Division 4 End User Division 14 Trade Division 5 Trade Division 15 Strategy Financial results
Slide 3: Highlights
Highlights • Despite the recession, Group revenue was maintained at £169.1m (2008: £168.1m) • Underlying operating profit* £5.5m (2008: £9.6m) • Operating profit £3.0m (2008: £5.8m) • Tax charge £0.4m (rate of 15%) (2008: £1.5m), no net payment in year • Underlying basic EPS was 17.1p (2008: 24.5p);
Slide 4: Background
Aimprint- Group ple Background
Slide 5: Promotional products market
Promotional products market • Sales of a wide range of products in a diverse number of categories including bags, pens and clothing • Design and sourcing of unique products for “one off” events and consumer promotions • Provide artwork, design and branding capability via a range of techniques e.g. p
Slide 6: Direct Marketing Division – 4imprint
Direct Marketing Division – “4imprint” Retailer Sales of promotional products to end-users via direct marketing (catalogue, email & internet) 1 US Base – serving US & Canada – revenue US$165m • No. 1 market position in US Direct Marketing promotional products • Market size of $17.8bn 2005 increased
Slide 7: End User Division – Brand Addition
End User Division – “Brand Addition” Retailer Sales of promotional products to medium and large enterprises for consumer / corporate promotions and corporate marketing activity generally through contracted or preferred supplier arrangements • Located in UK and Germany – revenue £44m • Offices in Hon
Slide 8: Trade Division - SPS
Trade Division - “SPS” Wholesaler Trade supply of promotional products to distributors in UK and Europe (including Brand Addition and 4imprint UK Direct Marketing). Specialist manufacturing and sourcing of promotional products and an extensive range of printing and branding facilities UK base – Sale
Slide 9: Financial results
Financial results For the 53 weeks ended 2 January 2010
Slide 10: Financial Highlights
Financial Highlights • Revenue maintained • Strong cash conversion • Net debt reduction • Efficiency / cost savings • Head office costs controlled • Significant headroom on funding facilities • Tax efficiency 6
Slide 11: Group income statement
Group income statement 2009 2008 2009 v 2008 £'000 £'000 £'000 Revenue 169,088 168,085 +1% Underlying operating profit* 5,452 9,562 -43% Operating profit 2,987 5,789 -48% Net Finance Costs (315) (719) Tax (401) (1,520) Profit after Tax 2,271 3,550 -36% Underlying basic EPS 17.07p 24.51p -30% Basic E
Slide 12: Group cash flow and debt
Group cash flow and debt • Net debt reduced • Dividend maintained at £3.1m • Pension fund payments £2.5m • Capital investment of £3.0m 2009 2008 £'000 £'000 Cash generated from operating profit before exceptional items 7,502 11,540 Working capital movement 3,416 4,695 Defined benefit pension payment
Slide 13: Balance Sheet
Balance Sheet 2009 2008 £'000 £'000 • Working capital reduced to 5.6% of sales Fixed assets 14,803 14,189 (2008: 8.1%) Goodwill 9,084 9,084 • Net debt reduced to £3.13m Deferred tax asset 7,223 5,861 31,110 29,134 • Headroom on UK and US banking facilities at Jan 2 2010: £8.02m - total available fun
Slide 14: By Division
4i ; mprint- 2009 By Division
Slide 15: Segmental analysis
Segmental analysis 2009 2008 Change £'000 £'000 % Revenue: Direct Marketing Division 111,138 96,663 +15% End User Division 44,219 54,968 -20% Trade Division 16,847 19,764 -15% Inter-segment sales (3,116) (3,310) Total 169,088 168,085 +1% 2009 2008 Operating Operating Operating profit before exceptio
Slide 16: Quarterly sales graph 2009 v 2008
Quarterly sales graph 2009 v 2008 Direct Marketing Division 60,000 50,000 40,000 30,000 20,000 10,000 2009 2008 - Q1 Q2 Q3 Q4 End User Division Trade Division 18,000 6,000 16,000 5,000 14,000 12,000 4,000 10,000 3,000 8,000 6,000 2,000 4,000 1,000 2,000 2009 2008 2009 2008 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 17: Direct Marketing Division
Direct Marketing Division 2009 2008 Key points: North America: • Revenue 3% below prior year; market estimated to have $'000 $'000 dropped by at least 20% Revenue 165,367 170,570 • Gross profit % broadly maintained in face of competitive Gross profit 61,364 64,218 pressure GP % 37.1% 37.6% • Average
Slide 18: End User Division
End User Division 2009 2008 Key points: £'000 £'000 • Sales 20% below prior year in line with decrease in market, key customers retained but buying less, Total revenue 44,219 54,968 particularly customers in the banking sector • 2% decrease in gross profit %, exchange impact and Gross profit 11,708
Slide 19: Trade Division
Trade Division 2009 2008 £'000 £'000 Key points: Total revenue 16,847 19,764 • Significant reduction in direct and overhead costs (£1.7m below 2008) Gross margin 8,821 10,560 • Quality, performance and customer service Direct Costs (4,671) (5,486) levels maintained Gross profit 4,150 5,074 • Sales 1
Slide 20: Strategy summary
Strategy summary 1 Focus on sustained development of organic, profitable growth coupled with strong cash flow generation. Little requirement for capital investment. 2 Continue to develop market position in all markets in which we operate: • Develop Direct Marketing Division as an international promo
Slide 21: Outlook
Outlook There is early evidence that the improvement in market conditions seen in the last quarter of 2009 is continuing into the first quarter of this year. This, coupled with a range of initiatives to increase sales and to improve operational efficiencies, means the Board is confident that the Gro
Slide 22: Aitnprint-
Aitnprint- Group plc