4imprint Group - Buoyant orders support further upgrade

Today’s update from 4imprint shows that the positive trading environment experienced in the first half has continued through Q3. Management has (again) lifted guidance for the full year. It now indicates revenue of around $1.1bn, generating PBT of not less than $90m, and we have raised our forecasts accordingly, with uplifts also to FY23 and FY24 estimates. With the inherent strong cash generation and $79m of cash balances as at end October, we view it as increasingly likely that a special divid

WH Ireland: 4imprint (FOUR) - Outstanding quality, consistent delivery, further chunky upgrades, cash in bank

Another excellent update from FOUR this morning underlines the superior quality of the company's model combined with their ability to deliver. We upgrade FY22E PBT and EPS by 12.5% today and lift forecast DPS to 135c to match (was: 120c). We note that FOUR has not only reached its $1bn revenue target early, but is now set to outpace it as early as this year by as much as 10%. Still small in the context of the $20bn-plus US promotional products market, FOUR uses intelligent data to drive highl

Morning Note – 4 November 2022

LIBERUM: 4imprint Group* - Yet more upgrades increase the case for special

4imprint - Strong trading supports potential for a special dividend

4imprint has continued to see strong trading momentum and now expects sales of c.$1.1bn this year (exceeding the group’s long held target of $1bn). Increased marketing effectiveness (supported by the strategic shift towards brand marketing including nationwide TV campaigns), relatively stable gross margins and operational gearing have all combined to produce higher operating margins and an expectation of PBT of not less than $90m (2021: $30m, 2019: $54m). We have upgraded FY 2022E EPS by 11.5% a

WH Ireland: Sector Comment - Dollar earner picks as sterling crumbles

Just over two months on from our “Sector Views” call to buy dollar earners on July 21th, this remains hugely topical with further significant £ weakness and the Bank of England at the time of writing on the back foot following last week's mini-budget. As the “world's currency”, the dollar remains at a multi-year high against a basket of major currencies and above parity with the euro. In terms of sterling, we recommended a selection of dollar buys two months ago when the sterling / dollar rat

LIBERUM: 4imprint Group* - An embarrassment of riches

4imprint Group - Big gains in marketing productivity

4imprint’s first half results show the benefit of record levels of customer demand, with revenue up 58% year-on-year and operating profit rising from $3.6m in H121 to $44.0m in H122. July’s trading update had indicated FY22 revenue breaking through management’s long-held $1bn target, with a material uplift in operating profit to over $75m. With H122 revenue per marketing dollar at $8.19, up from $5.46 in H121, we have substantially raised our profit forecasts for FY22 and FY23 and now publish ou

WH Ireland: 4imprint (FOUR) - Excellent results reflect operational lift off and an enhanced model; upgrades

FOUR has posted extremely strong H1 results today, a powerful performance by any standards. Key is (1) significant demand increases, (2) pricing leadership, but (3), most important, a stunning lift in the revenue per marketing dollar. This last is the result of this innovative company reworking its already very successful marketing model, equipped with an intelligent data analytics platform, in a new direction which has generated significantefficiencies in the crucial marketing process, result

Morning Note – 10 August 2022

LIBERUM: 4imprint Group* - Excellent momentum continues

4imprint - $1bn sales target set to be broken alongside a record margin

As previewed in the recent trading update, 4imprint has reported very strong H1 results. Sales were up +58%, operating profit up 1,122% and net cash improved from $42m to $67m. Customer demand is at record levels, with orders processed up 44% on H1 2021 and average order value up +10%. Operating margins increased from 1.3% to 8.5% and are up from the 6.2% achieved pre pandemic in FY 2019, with a significant improvement in marketing effectiveness being the key driver. While management recognises

Morning Note – 21 July 2022

WH Ireland: Sector News and Views – Corporate - dollar earner picks in a changing landscape

A year on from the end of lockdown on July 19 2021, celebrations at the UK's economic bounce-back in H2-21 have long lost their fizz. Two intertwined themes have remained salient / gathered pace over the past six months since our mid-year sector review: exchange rates and inflation. As we write today, press speculation is focussing on the possibility of a 0.5% rise in UK interest rates in August, billed as the biggest move in 27 years. Looking further afield, economists are looking to the F

WH Ireland: 4imprint (FOUR) - Strong revenue momentum, step change in profitability, 40%-plus upgrades

FOUR's update earlier in the week reflects both accelerating demand / pricing momentum in its business and a fundamental upward shift in profitability, leading to significant forecast upgrades. Compared with 2019, 14% order growth has compounded with 14% order value increases to generate 30% sales growth in the first six months, with the rise in orders moving up a gear from +11% as reported in relation to the first four months. So far, so creditable, but the company has also exploited its new

SHORE CAPITAL - Kape Technologies+ (KAPE) - House Stock at 250p – Key takeaways from Digital Privacy Event Online

Hybridan Small Cap Feast 16/11/22

Dish of the day Joiners: BWP REIT joins the Wholesale Segment of the International Property Securities Exchange (IPSX). BWP REIT is a newly formed single asset company and has raised £35m by issuing 35m new ordinary shares at 100 pence per share to acquire Bridgewater Place, an office-led mixed use property in central Leeds and valued at £63m. The property is one of the tallest buildings in Yorkshire, comprising 234,000 sq. ft of office space, and is close to 90% let to EY, as well as multinatio

LIBERUM: M&C Saatchi* - Reinstating coverage with a BUY

The Big Book 2022 - Extended Coverage & Best Ideas

The Big Book 2022 includes our highest conviction Best Ideas for 2022. In 2021 our Best ideas outperformed by 24%, extending our track record (>10% outperformance on average over the past decade). We have again divided our coverage into six distinct themes to create our Matrix. We have added two new categories this year: ESG and Pricing Power, both of which will be fundamental investment themes for 2022. We look forward to discussing our ideas with you.

SHORE CAPITAL - Eagle Eye+ (EYE) - House Stock at 553p

Wilmington PLC - Final results

The July full year trading update showed that FY22 has been a good year for Wilmington with a full year outcome ahead of expectations. The final results did not disappoint with the added benefit of a final dividend well ahead of expectations (+37% YoY) as a clear signal of Board confidence in the outlook.

Hybridan Small Cap Feast 08/03/2022

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Summerway Capital plc, (AIM:SWC) to be renamed Celadon Pharmaceuticals plc following completion of the acquisition of Vertigrow Technology Ltd, is to relist on AIM. Vertigrow is a UK based pharmaceutical Company specialising in the researching, growing and supply of medicinal cannabis, for a total consideration of £80m. Summerway is an investing company focused on investment and acquisition opportunities acr

Hybridan Small Cap Feast 02/11/22

Dish of the day Joiners: Cooks Coffee Company Limited (NZX:CCC) has joined the Access Segment of has dual listed joining the Access Segment of the AQSE Growth Market under the ticker COOK. Cooks Coffee has a total of 111 outlets in the UK, Ireland and across its international markets. It is the 4th largest coffee chain in the UK (behind Starbucks, Costa and Caffè Nero). The company currently owns the Esquires Coffee and Triple Two Coffee Brands. Esquires was founded nearly 30 years ago and Cooks

Q3: Underlying performance improves

Reach’s update reveals encouraging underlying performance, with Q3 sales decline of -2% y/y decelerating from Q2 (-3%) even inclusive of a advertising blackout in September. Underlying growth was in-line with SCMe forecasts, as Digital revenue growth accelerated to +6% y/y (Q2: +0%) reflecting: 1) user engagement initiatives and returns on focused editorial investment driving traffic (Digital page views: +6% y/y); and 2) stabilised Digital yields as a greater share of inventory was allocated to

SHORE CAPITAL - Kape Technologies (KAPE, House Stock at 241p)