30 September 2016

4imprint improves as Nelson nails 'Cessna' deal

10/01/03

Shares in promotional products distributor 4imprint (FOUR) improved 3p to 36.5p today, after the support services outfit flagged up a new contract with Cessna Aircraft Company and CEO Dick Nelson said its full year result would match market expectations.

4imprint (FOUR) has been chosen to supply promotional products for Cessna's on-site store in Kansas, as well as to manage and stock the store, which is open to Cessna employees and visitors. Nelson's Whitefield-headquartered company has also set up an online store for Cessna, a division of Fortune 500 outfit Textron that designs and makes light and mid-size business jets as well as single engine piston aircraft.

4imprint consists of a batch of companies in the highly fragmented promotional products market worth some $30 billion. Globally its the biggest direct marketer of these products and the fourth largest distributor, with blue chip clents like BT, British Airways, Microsoft and BMW on its books.

In other, more upbeat news, Nelson says 4Imprints full year figures due out in mid-March will hit reduced market forecasts. 'The advertising market remains challenging, but we're beginning to see the benefits of tighter controls and growth plans we put in place last year, and our cash generation in 2002 has been better than expected' he added.

Last September, 4imprint's interims to 29 June were a big disappointment. Pre-tax profits of 500,000 reversed to a 2.3 million deficit after a 2.4 million provision against amounts owed from US franchisee owners. Following a review of the operation, management had targeted a number of 'underperforming or non-compliant' owners for temination at its US franchise Adventures in Advertising.

Even the profit before tax, exceptionals and goodwill measure crashed 45 per cent to a mere 520,000, on turnover 1.4 per cent softer at 45 million, as 4imprint endured 'the worst conditions seen in advertising in recent history'.

However, with the now reduced forecasts likely to be met, and the shares still languishing, analyst Charlie Cottam at house broker WestLB Panmure has an 'outperform' note out on the stock with a 60p target price. He has 5.6p of earnings pencilled in for the year to 29 December 2002, down from 8.9p, and expects pre-tax profits of 2.5 million (trimmed back from previous estimates of 3.9 million). At 36.5p, the shares trade on a mere 6.5 times earnings.

Cash Shells 2015

Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today

 

Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2015

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + VAT. Click here for more info

 

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Change at the top of Clinigen 28/09/16

Fast-growing specialist healthcare company Clinigen has announced a change of CEO alongside its annual results. Peter George is to step down but will remain on the board as a non-executive director. His deputy Shaun Chilton steps up to the CEO’s chair.

A gold medal ingredient 22/09/16

It’s hard work building a consumer brand, but Science in Sport is giving it a good go. The company has developed a range of sports nutrition products which have credibility from elite athlete users who won 34 medals at Rio.

A solid year at Brooks MacDonald 21/09/16

Fund manager Brooks MacDonald has recorded a solid year of asset growth. Funds under management grew by almost 12 per cent overall, which was a good result against a tricky market backdrop.

Styles & Wood upgraded on deal 21/09/16

Styles & Wood shares have doubled in value over the last six months as the strategy to diversify the customer base and focus on profits rather than revenue growth has gained momentum. A good set of interim results has just been followed by an earnings-enhancing acquisition.

Where's the beef? 15/09/16

Crawshaw Group shares have come crashing back to earth following a profit warning. When a highly rated growth stock hits an air pocket you run the risk of a big correction and the shares have fallen 40 per cent today.

Safestay hurt by downgrade 13/09/16

Hostel operator Safestay has released a slightly disappointing set of interim figures. Rather than becoming profitable this year there is now likely to be a small loss and the market has consequently cut back profit forecasts for the following years.

More News