LIBERUM: 4imprint Group: More specials on the horizon

4imprint Group - Continued market share gains

4imprint’s FY23 results are as outlined in January’s trading update, with 16% top-line growth and a further step up in operating margin to 10.3% from 9.0%. Given that the trading backdrop became more difficult over the final few months, as shown in industry reports, this implies that the group continues to build share in its large and fragmented addressable market for promotional products. 4imprint ended the year with net cash and short-term deposits of $105m after particularly strong cash conve

4imprint - Excellent results following many upgrades, margin accretion, powerful model

Today's FY results from FOUR fully bear out the promise of recent updates which have been accompanied by a succession of upgrades. Against tough comparators, the company has succeeded in driving PBT forward by 36% YoY, while also generating significant cash (+20% as against the prior year end), with cash / deposits standing at over $US100m. FOUR's sophisticated model uses intelligent data to drive highly effective marketing of merchandise to a broad range of North American companies, and the com

Morning Note – 13 March 2024

4imprint - Confident of continued market share gains

4imprint has reported strong FY 2023 results (given the macro uncertainty) with sales +16% in an end market that grew 2% (evidencing continued market share gains) and EPS +32% supported by an increase in operating margin from 9.0% to 10.3%. With net cash of $105m and market share still only 4.9% in a $26bn market 4imprint has the resources, track record and opportunity to continue on its well-established growth path, punctuated with occasional special dividends on top of the regular returns. Man

LIBERUM: 4imprint Group: Continued market share gains

4imprint Group - FY23 finishes strongly

4imprint’s year-end trading update indicates that 2023 was a strong year for the group’s financial performance. Revenue of $1.33bn is in line with guidance reiterated in November of ‘slightly above $1.3bn’, but PBT is now guided at ‘not below $140m’, above our previous expectation of $131m. We attribute the stronger profitability to a combination of higher gross margin and marketing efficiency. Strong cash performance resulted in the year-end balance of $105m exceeding our prior $84m estimate. O

4imprint - Further upgrades as PBT again beats range and margins / share are enhanced

Today's FY update shows FOUR again coming in ahead of the top of the forecast range, a 6% beat which we follow through with upgrades to FY24E and FY25E. The company uses intelligent data to drive highly effective marketing of merchandise to medium sized North American companies, and its superior marketing skills, further developed in recent years, are responsible both for the continuing upwards shift in margins and for its ability to grow significantly in excess of the market. With generally ver

Morning Note – 19 January 2024

LIBERUM: 4imprint Group: Cash and EPS better despite the macro

4imprint Group - Further progress in Q323

4imprint’s Q323 trading update indicated further good growth, albeit moderating against comparatives getting tougher as the year progresses. Full year revenue guidance is maintained at ‘slightly above’ $1.3bn, with continuing high returns on marketing spend prompting a $5m uplift in PBT guidance to ‘not less than $130m’. 4imprint’s underlying markets reflect US corporate economic health, with any downside mitigated by the prospect of carrying on building market share as less well-funded firms st

4imprint - Growing profits, forecast upgrades; cash very strong at $US95m

This morning's FY23E 10-month update from FOUR highlights revenues in line with expectation as we approach the last portion of the year, but margins warming again, resulting in PBT upgrades of c.5%, to just above c.$US130m. FOUR uses intelligent data to drive highly effective marketing of merchandise to medium sized North American companies. Against tough FY22A comparators, we view these new upgrades as particularly creditable. Cash is strong – a reminder that this remains a highly cash-generati

Morning Note – 7 November 2023

LIBERUM: 4imprint Group: Margins drive upgrades

4imprint - Higher margin drives FY 2023E upgrade

4imprint has confirmed that FY 2023E revenue is still expected to be slightly above $1.3bn (up +15% on 2022) but that PBT is expected to be not less than $130m, up from previous guidance of $125m. We have upgraded FY 2023E EPS by +4%, having raised our FY 2023E operating margin forecast from 9.4% to 9.7%. Management has highlighted some evidence in recent weeks of softening demand patterns typical of a more cautious macro environment, and a reminder that weaker market conditions have previously

LBG Media (LBG LN) - Strong momentum into FY24

Resilient growth in core markets: Revenue of £67.5m is +7.5% YOY (FY22: £62.8m) and +0.7% vs. Zeus estimate of £67.0m, with growth across Direct and Indirect divisions benefitting from increased activity with new and existing clients.

Next 15 Group - Baked in AI opportunities

Next 15 Group's net revenues grew 2.5% in the year to January, despite difficult markets. Adjusted operating margin rose from 20.2% to 21.0%, helped by head office cost savings. In common with much of the sector, spending by tech clients was soft, down 17% like-for-like. The group did well, though, in growing spend from non-tech clients, up 11%, making for a strong overall performance in a market beset by ongoing macro uncertainty. Next 15 has been building its AI capabilities for some time and

LIBERUM: M&C Saatchi: Brutal Simplicity of Operations

LIBERUM: The Liberum Leisure Digest: NLW increase - pricing power is key

Team Internet Group - Growth and returns, acquisition bolsters outlook

Team Internet’s FY23 results exceeded our forecasts and consensus on revenue and EBITDA. Online Marketing was driven by increased consumer engagement, reflecting investment in delivering more targeted ads across a wider array of channels. The group’s latest acquisition, Shinez, strengthens Online Marketing via diversification of publishers and is earnings accretive with scope for further synergies. Online Presence returned to strong revenue growth, driven by demand for exotic domains, pricing op

S4 Capital - Extension of recovery horizon

S4 Capital had a difficult FY23, as flagged, with reduced client confidence and spend, particularly from those clients in the tech sector, and on larger transformation projects. Management is cautious in the short term, with no substantive changes likely in H124, but sees conditions likely to improve in H224 as economic pressures ease. The group’s longer-term prospects should be buoyed by its positioning across data and digital marketing and, in particular, in incorporating AI into hyper-persona

Nexxen - Q4 results +2-4% ahead of cons, FY24E forecasts +3-4% ahead

Nexxen has announced Q4 net revenue +2% ahead of consensus, Q4 adjusted EBITDA +4% ahead of consensus, and FY24 guidance that leads our FY24E revenue and EBITDA to be +3% and +4% ahead of consensus. Q4 net revenue of $90.5m is +2% ahead of Q4 consensus of $88.5m, with the Programmatic division’s $86.0m of net revenue delivering 95% of group net revenue. After successfully realising $65m of annualised synergies from the Amobee acquisition at Q2 23 results, strong cost control has driven Q4 adjust

LIBERUM: Agents of change: Evolving for modern demands

LIBERUM: Time Out: Expanding the Markets pipeline

Team Internet Group (TIG LN) - Record results

Team Internet’s FY23 results confirmed another strong year of trading from its Online Marketing and Online Presence businesses. Both revenue and EBITDA growth remained in double digits, margins on net revenue continued to improve, and cash conversion remained strong. We continue to believe that the Group has substantial long-term growth opportunities including international expansion, new partner development, and vertical integration. In our view, Team Internet’s strong track record, cash genera

Team Internet Group (TIG LN) - Online Marketing bolt-on

Following the record FY23 results announced yesterday, Team Internet announced an accretive bolt-on acquisition for an initial consideration of $42m. The Group is continuing its strategy of making accretive bolt-on acquisitions, aiming to diversify its revenue model and expand its traffic monetisation options and capabilities. The deal is expected to complete in late May 2024, at which point we will incorporate the impact into our forecasts. We continue to believe that Team Internet’s strong tra

STV Group+ (STVG, House Stock at 235p) - Recent news extends positive momentum

Next 15 - FY24 Full Year update

If one focused solely on the share price chart, it would appear Next 15 had experienced a near death experience in 2023 with multiple, and extensive downgrades. The reality has been somewhat different. Next 15 will exit FY24 delivering both top line growth and year on year margin progression.

PROGRESSIVE: STV Group: Supportive contract wins

A first commission for Netflix and a material extension of an existing commission for Warner Bros. Discovery highlight continuing strong momentum in 2024 for STV’s Studios division. As well as underpinning current estimates, they point to a continuing broadening out of the client base and scope of work at STV Studios, as the group continues its long-term migration from a traditional broadcaster to a digital streaming and content provider.

Initial Equity Trading Comments - 16 May 2023