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4imprint Group PLC on Tuesday raised its full-year outlook, now expecting profit to reach $75 million and beat analysts' forecasts.
Shares in the London-based marketer of promotional merchandise were up 12% to 2,730.00 pence each in London on Tuesday morning. The wider FTSE 250 index was down 0.4%.
4imprint said strong trading has continued in the first six months of the year.
In the half year to June 30, total order numbers in the company's primary North American business were 14% higher than pre-Covid 2019 levels. Average order values also were 14% ahead of 2019, with overall demand revenue up 30%.
The trading momentum means 4imprint is likely to meet or exceed its revenue target of $1 billion in revenue in 2022, it said.
Further, its expectations for full-year operating profit have ‘improved substantially’. 4imprint now expects profit to be materially above the consensus of analysts' forecasts and at least $75 million.
In 2021, 4imprint reported $787.3 million revenue and an operating profit of $30.7 million.
‘This favourable profitability dynamic results from revenue volume growth combined with leverage in the business model driven by further gains in the productivity of our marketing programme, gross margins remaining relatively steady in an inflationary environment and operational gearing over the cost base,’ the company said.
However, 4imprint remains cautious of the wider macroeconomic environment. The company's more positive outlook takes into account geopolitical and broader economic factors, including the threat of recession.
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