10/01/2003
Promotional products distributor 4imprint flagged up a new contract with Cessna and says final results will match expectations. It will supply, manage and stock Cessna's on-site store in Kansas. A division of Fortune 500 outfit Textron, Cessna makes light and mid-size business jets. CEO Dick Nelson also says March's full year figures will hit reduced forecasts. 'We're beginning to see the benefits of tighter controls and growth plans put in place last year and cash generation has been better than expected' he claims. Interims to June were disappointing. Pre-tax profits of £500,000 reversed to a £2.3m deficit on £45m of turnover after a £2.4m provision against amounts owed from US franchisee owners. Management targeted a number of 'underperforming or non-compliant' owners for temination at Adventures in Advertising, or 'AIA' as 4imprint endured 'the worst conditions seen in advertising in recent history'. Nevertheless house broker WestLB Panmure has an 'outperform' note out on the stock, with 5.6p of earnings pencilled in for the historic year to 29 December 2002. At 36.5p, the shares have been marked down dramatically from a year's high of 133p, and trade on a mere 6.5 times earnings. Could be one to buy for recovery once the battered advertising market turns.
| Market cap: | £10m |
| PE Forecast: | 6.5 |
| Share price: | 36.5p |
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