4imprint Group Plc · LSE:FOUR
4imprint — FY2010 Earnings Presentation
15 slides from 4imprint's earnings presentation, January 2011
Slide 1: Results presentation for the year ended 1 January 2011
Results presentation for the year ended 1 January 2011
Slide 2: Index
Index 1 Background 2 Highlights 2010 3 Group income statement 4 Divisional analysis 5 Group cash flow 6 Balance sheet 7 Debt / borrowing facilities 8 Pension summary 9 4imprint Direct Marketing 10 Brand Addition 11 SPS 12 Situation & outlook
Slide 3: Background
Background 4imprint Group plc is a leading international supplier of promotional products and comprises three Divisions supplying promotional products under three brand names: 4imprint; Brand Addition and SPS 4imprint Direct Marketing: The leading Direct Marketing promotional products business in th
Slide 4: Highlights 2010
Highlights 2010 • Group revenue £200.77m, an increase of 19% • Underlying operating profit* £10.49m, an increase of 92% • Underlying profit before tax £9.98m (2009: £5.14m) • Profit before tax £8.09m, (2009: £2.83m) • Year end net debt £0.24m, a reduction of £2.89m • Underlying basic earnings per sh
Slide 5: Group income statement
Group income statement 2010 2009 2010 v restated restated 2009 £'000 £'000 Revenue 200,768 169,088 +19% Underlying operating profit* 10,486 5,452 +92% Operating profit 8,596 3,140 +174% Net finance costs (509) (315) Tax (1,225) (424) Profit after tax 6,862 2,401 +186% Underlying basic EPS 32.87p 17.
Slide 6: Divisional analysis
Divisional analysis 2010 2009 Revenue: Change £'000 £'000 4imprint Direct Marketing 128,972 111,138 +16% Brand Addition 58,886 44,219 +33% SPS 16,252 16,847 -4% Inter-segment (3,342) (3,116) Total 200,768 169,088 +19% 2010 Return on 2009 Return on Operating profit: restated sales % restated sales %
Slide 7: Group cash flow
Group cash flow 2010 £'000 Underlying operating profit 10,486 Working capital movement (1,687) Depreciation and amortisation 2,058 Capital expenditure (1,540) Cash exceptional items (526) 8,791 Tax & interest 15 Defined benefit pension contributions (2,501) Dividends (3,399) Exchange and other (19)
Slide 8: Balance sheet
Balance sheet 2010 2009 Restated restated* £'000 £'000 Fixed Assets 14,246 14,803 • Capital additions £1.46m, depreciation & Goodwill 9,084 9,084 amortisation £2.06m Deferred tax asset 6,348 7,558 • Working capital 5.3% of revenue (2009: 29,678 31,445 5.1%) • Reduction in net debt of £2.89m Inventor
Slide 9: Debt / borrowing facilities
Debt / borrowing facilities 2010 2009 £'000 £'000 Cash & cash equivalents 8,465 5,613 Borrowings due in less than 1 year (374) (6,196) Borrowings due after 1 year (8,330) (2,543) Net debt (239) (3,126) Headroom on UK & US facilities at 1 Jan 2011: £7.77m Borrowing facilities UK: • £6m loan facility
Slide 10: Pension summary
Pension summary IAS 19 Liability 2010 At 1 Jan 2011: £'000 • Assets £77.56m (equities 32%, bonds 50%, At start of period (22,450) property 17%, cash 1%) Charge in the income statement (569) • Liabilities £99.46m Contributions paid 2,501 • Discount rate 5.5% Actuarial losses on liabilities (4,280) Ac
Slide 11: 4imprint Direct Marketing
4imprint Direct Marketing 2010 2009 • Revenue increased 15% - ahead of market North America: $'000 $'000 • 14% increase in new customer orders Revenue 190,077 165,367 • Existing customer orders 27% ahead of prior Gross profit 68,564 58,217 year Gross profit % 36% 35% • UK business grew revenue by 12
Slide 12: Brand Addition
Brand Addition 2010 2009 • Revenue 33% ahead of prior year £'000 £'000 New contracts £13m Revenue 44,219 Expired contracts (£4m) 58,886 Growth on existing customers £6m Gross profit 14,071 11,708 • Reduction in gross profit due to change in mix Gross profit % 24% 26% • Sales resource increased to su
Slide 13: SPS
SPS 2010 2009 £'000 £'000 • Revenue 4% below prior year Total revenue 16,252 16,847 • Maintained margin % Gross margin 8,396 8,821 • Reduction in overheads Gross margin % 52% 52% • Underlying operating profit before Direct costs (4,409) (4,671) depreciation and amortisation £0.77m Gross profit 3,987
Slide 14: Situation & outlook
Situation & outlook • Focus on sustained development of organic, profitable growth coupled with strong cash flow generation. Little requirement for capital investment • Develop 4imprint Direct Marketing through self-financed revenue investment to leverage strong market position • Support organic gro
Slide 15: Aitnprint-
Aitnprint- Group plc