Promotional products distributor 4imprint is seeing some signs of recovery (albeit tentative). But results for the six months to June were marred by a £2.3m exchange rate hit from the conversion of Dollar revenues into sterling. There were also £1.3m of exceptional charges related to the restructuring of US franchise sales subsidiary AIA (Adventures in Advertising), resulting in a £2.3m loss for the six months to June, about the same as last year. Sales were down from £45m to £43m. Yet these figures clearly mask an underlying picture which is not bad at all, especially given the prolonged advertising slump of recent years. 4imprint is the UK market leader in its field and amongst the top five in the US, with ancillary offices in Canada and Germany and another to come in Hong Kong. Added to this, the company is financially sitting pretty, with net cash of £4.7m and tangible net assets of £40.9m at the half-year end. Chief executive Dick Nelson is confident that the group will meet expectations for the year as a whole, with house broker Panmure expecting £300,000 of profits before tax and amortisation after a much stronger second half. Dollar exposure does give further cause for concern though, and the shares don't look anything better than fairly valued.