9th Mar 2016 10:16
LONDON (Alliance News) - 4imprint Group PLC Wednesday said that 2016 has started "satisfactorily" and hiked its dividend for its most recently ended financial year after it saw strong profit growth.
The promotional products maker proposed a total dividend of 26.57p pence, up 30% from the 20.45 pence it paid the previous year.
4imprint reported a 33% rise in pretax profit to USD31.2 million for the 53 weeks to January 2 from USD23.3 million the previous year, on revenue of USD497.2 million, up from USD415.8 million. It saw particularly strong growth in North America, where revenue rose 20%, compared to 7.0% growth in the UK and Ireland.
The company said that the extra week in its accounting period contributed revenue of around USD4 million.
4imprint completed two infrastructure projects during the year, doubling the size of its Oshkosh distribution centre in Wisconsin, and expanding its customer service capacity at its main office location in the UK.
Elsewhere, the company made progress in reducing the deficit related to its pension scheme; it reached an agreement with the trustee of the scheme to convert previous buy-in arrangements to a buy-out, which it said will substantially reduce the size of the remaining scheme and lead to contributions going forward.
It will make a one-off contribution of GBP10 million into the scheme in 2016 as part of this agreement.
"2015 was another excellent year for 4imprint. The business proposition remains strong and the opportunity substantial. Our strategic objective continues to be the maximisation of organic growth while delivering broadly constant operating margins coupled with high cash conversion. 2016 has started satisfactorily," said Chairman John Poulter in a statement.
Shares in 4imprint were up 2.3% at 1,270.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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