TIDMFOUR
RNS Number : 8063R
4imprint Group PLC
05 March 2019
5 March 2019
4imprint Group plc
Final results for the period ended 29 December 2018
4imprint Group plc (the "Group"), the leading direct marketer of
promotional products, today announces its final results for the 52
weeks ended 29 December 2018.
Highlights
2017
2018 (restated)
Financial $m $m Change
-------- ------------
Revenue 738.42 627.52 +18%
Underlying* profit before tax 45.59 41.91 +9%
Profit before tax 44.15 40.66 +9%
------------------------------------ -------- ------------ ---------------
Underlying* basic EPS (cents)
Basic EPS (cents) 129.77 106.74 +22%
Proposed total dividend per share 125.61 103.15 +22%
(cents)
70.00 58.10 +20%
Proposed total dividend per share
(pence) 53.15 42.58 +25%
Supplementary dividend (cents) - 60.00 -
Supplementary dividend (pence) - 43.17 -
------------------------------------ -------- ------------ ---------------
* Underlying is before defined benefit pension charges and
exceptional items.
Underlying has been restated to include share option
charges.
Operational
* Organic revenue growth
* Revenue + $110.9m (+18%)
* 1,389,000 total orders processed (+17%)
* 279,000 new customers acquired; stable retention
rates
* Execution of Group strategy
- Brand awareness initiative successfully launched in 2018
- Ahead of plan to hit revenue target of $1bn by 2022
- $5m capital investment in Oshkosh distribution centre
in 2019
* Financial discipline
* Cash balance $27.5m at year-end
* 20% increase in regular dividend
Paul Moody, Chairman said:
"Our business model is highly focused and our market opportunity
remains substantial. The successful initial execution of the brand
building initiative in 2018 leaves the Group in a good position to
meet its strategic goals. Trading results in the first few weeks of
2019 have been encouraging."
For further information, please contact:
4imprint Group plc MHP Communications
Tel. + 44 (0) 20 3709 9680 Tel. + 44 (0) 20 3128 8156
Kevin Lyons-Tarr - CEO Katie Hunt
David Seekings - CFO Nessyah Hart
Chairman's Statement
2018 was a memorable year for 4imprint. The Group's operational
and financial performance represents substantial progress towards
our target of achieving $1bn in Group revenue by 2022.
Group revenue in 2018 was $738.4m, an increase of 18% over the
prior year comparative of $627.5m. Consistent with our strategy,
all of this revenue growth was organic. Underlying operating profit
before tax was $45.6m, 9% higher than 2017. This financial
performance is particularly rewarding given that we had positioned
2018 as an 'investment' year, initially guiding towards a revenue
growth percentage in the low teens and underlying operating profit
essentially flat against 2017.
This time last year we announced an exciting new project to
heighten the awareness and strength of the 4imprint brand. Our plan
involved significant incremental expenditure on different marketing
techniques, including the integration of traditional broadcast
media such as TV and radio into our overall marketing portfolio.
The results so far from the brand development programme have
exceeded our expectations, with tangible and immediate gains in
customer order activity contributing directly to the Group's strong
financial performance.
Order volumes increased sharply in the second quarter of the
year, stretching our customer service and back office resource. In
typical fashion, our team members responded to the challenge with a
relentless focus on the detail of every order. I would like to
express the Board's appreciation and thanks to each member of our
highly professional team for their efforts both during this period
and throughout the year. We are also grateful to our supplier
partners whose support was invaluable at this time of rapid
growth.
Profit before tax at $44.1m was up 9% over prior year. Profit
after tax of $35.2m improved by 22% over 2017, driven principally
by the beneficial effects of US tax reform. Accordingly, basic
earnings per share rose by 22% to 125.61c.
Our business model is highly cash-generative and consequently
the Group remains well financed, with a 2018 year-end cash balance
of $27.5m, (2017: $30.8m), even after absorbing the payment in May
2018 of a supplementary dividend amounting to $16.3m.
In view of the Group's sustained growth trajectory, the Board
has accelerated by a year further planned expansion at its
distribution centre in Oshkosh, Wisconsin. The capital cost in 2019
will be around $5m.
At the half-year the Board declared an interim dividend per
share of 20.80c, an increase of 15% over 2017. In view of the
Group's performance in the second half of the year and in line with
our balance sheet funding and capital allocation guidelines, the
Board is pleased to recommend a final dividend per share of 49.20c,
an increase of 23%, giving a total paid and proposed 2018 regular
dividend of 70.00c, up 20% over prior year.
Outlook
Our business model is highly focused and our market opportunity
remains substantial. The successful initial execution of the brand
building initiative in 2018 leaves the Group in a good position to
meet its strategic goals. Trading results in the first few weeks of
2019 have been encouraging.
Paul Moody
Chairman
5 March 2019
Chief Executive's Review
2018 2017
Revenue $m $m
------------------------------ ------- ------------ -----
North America 714.56 608.00 +18%
UK and Ireland 23.86 19.52 +22%
Total 738.42 627.52 +18%
------------------------------ ------- ------------ -----
2017
2018 (restated)
Underlying* operating profit $m $m
------------------------------ ------- ------------ -----
Direct Marketing operations 49.63 45.64 +9%
Head Office (3.45) (3.06) +13%
Share option related charges (0.82) (0.55) +49%
Underlying operating profit 45.36 42.03 +8%
------------------------------ ------- ------------ -----
Operating profit 44.32 41.28 +7%
------------------------------ ------- ------------ -----
Underlying profit is included because the Directors consider
this gives a measure of the underlying performance of the ongoing
business.
* Underlying is before defined benefit pension charges and
exceptional items.
Underlying has been restated to include share option
charges.
2018 was a successful year for the Group.
Twelve months ago, we set out our plan to make a significant new
marketing investment. This involved the addition of a brand
component, principally TV and radio, to our marketing portfolio.
Our aim was to extend our reach by cultivating awareness of the
4imprint brand as 'the' source for promotional products. We had
performed extensive research to identify our target customer and
their needs, and to analyse 4imprint's competitive position in the
market. As a result, we were confident in our direction, but
uncertain of the timeframe over which brand-based advertising would
produce meaningful revenue benefits. In addition, we were careful
to point out that this investment would be incremental and as such
would not involve a re-allocation of funds away from our existing,
proven marketing engine. In consequence, we guided to 2018 numbers
showing continued revenue growth but flat year-on-year operating
profit to reflect the investment phase of this new initiative.
The Group's actual performance in 2018 exceeded these early
expectations. Beginning in March 2018, this evolution of our
strategy produced immediate and tangible gains, including material
increases in both direct website traffic and in online
searches/interest in "4imprint". This produced considerable
momentum in the customer file, leading to financial results ahead
of our original projections.
279,000 new customers were acquired across the Group in 2018,
driving orders from new customers up 14% over prior year (compared
to an increase of 5% in 2017). Orders from existing customers
increased over 2017 by 19% (prior year comparative 16%) including
important early signs that the change in the marketing mix is
yielding customers with retention characteristics conforming to our
target customer 'sweet spot'. In total our customer service teams
processed 1,389,000 individually customised and usually
time-sensitive orders, an increase of 17% over 2017.
Our North American business enjoyed robust trading throughout
the year, particularly after the launch of the brand marketing
programme in March 2018. Our presence continues to expand in the US
and Canadian markets, which are both serviced from a central office
in Oshkosh, Wisconsin. Revenue growth over prior year was 18%,
compared to estimated total industry growth of about 5%.
Our UK business, based in Manchester, also delivered an
excellent result. Revenue was up 22% over prior year, benefitting
from some exchange rate impact but still up a healthy 18% in
Sterling.
The Group aggregate gross margin percentage in 2018 was
consistent throughout the year at around 0.7% lower than 2017. At
the half-year we reported that various factors contributed to this,
including the impact of a rapid increase in order volumes after the
launch of the branding campaign. This placed some strain on our
operational capacity and supplier/delivery arrangements, resulting
in elevated levels of expedited freight costs and other
credits/adjustments made to ensure that we were able to deliver on
our promise of excellent service. These operational factors were
largely addressed by mid-year. A similar margin percentage effect
was felt in the second half, driven principally by stronger than
anticipated order volume in the already rapidly growing apparel
category, where margins are typically lower than average. This
shift in mix towards the apparel category and also within that
category towards higher value items resulted in most of the margin
movement in the second half. Overall, our approach to pricing has
not changed, and we expect that our gross margin percentage will
stabilise in 2019.
Revenue per marketing dollar was $5.63 in 2018 compared to $5.67
in 2017. Given the investment in brand marketing in the year this
is a very satisfactory result, equipping us with a broader base and
more flexibility to adjust the balance within the marketing
portfolio moving forward.
Underlying operating profit, excluding Head Office expenses and
share option related charges, increased over prior year by $4.0m to
$49.6m, a 9% increase. This is lower than the percentage increase
in revenue, reflecting the incremental brand advertising expense
and a slightly lower gross margin percentage, offset by some
gearing effect from selling costs and other overheads in the
trading businesses rising at a rate lower than the increase in
revenue.
Head office costs rose by 13% compared to 2017, with the
increase accounted for largely by incentive compensation and
exchange effects on costs incurred in Sterling.
Share option related expense increased by 49%, driven by
enrollment in our popular employee share option (SAYE or US
equivalent) plans and executive awards made under the 2015
Incentive Plan.
Overall, the Group underlying operating margin percentage for
2018 was 6.14%, compared to 6.70% in 2017. In the context of the
marketing investment made in 2018 and the delivery of underlying
operating profit $3.3m higher than our original expectations for
the year, we are happy with this result. We enter 2019 as a much
larger business with a fundamentally strengthened array of tools
and techniques with which to drive further organic growth.
In contemplation of further revenue growth, we have accelerated
by a year a planned expansion of our distribution centre in
Oshkosh. Construction work has already commenced and should be
completed by mid-year 2019, at a capital cost of around $5m. Our
business model remains highly cash-generative and the project will
be financed out of in-year cash flow.
The markets in which we operate are fragmented and our share is
still small. Our strategic goal of achieving $1bn in revenue by
2022 is firmly in sight.
Financial Review
2017 2017
2018 Underlying* 2018 (restated)
Underlying* (restated) Total Total
$m $m $m $m
--------------------------------- ------------- ------------- ------- ------------
Underlying operating profit 45.36 42.03 45.36 42.03
Exceptional items (0.72) (0.46)
Defined benefit pension charges (0.72) (0.79)
Net finance income/(expense) 0.23 (0.12) 0.23 (0.12)
Profit before tax 45.59 41.91 44.15 40.66
--------------------------------- ------------- ------------- ------- ------------
* Underlying is before defined benefit pension charges and
exceptional items.
Underlying has been restated to include share option
charges.
Operating result
Group revenue in 2018 was $738.42m (2017: $627.52m), a
year-over-year increase of 18%. Underlying operating profit before
tax was $45.59m (2017: $41.91m), 9% higher than prior year.
IFRS15 'Revenue from Contracts with Customers', was implemented
from the start of the accounting period. The resulting adjustments
have a minimal impact on the full year financial results of the
Group, reducing revenue by $1.2m and operating profit by $0.3m. The
impact for 2017 would have been $0.7m revenue reduction and $0.2m
operating profit reduction. We therefore chose the transition
option of an opening net equity adjustment over the restatement of
prior periods. This resulted in a reduction in net equity of
$1.0m.
In prior results announcements we excluded share option related
charges from our definition of underlying operating profit. On the
basis that share-based payments are now relatively stable and
relate directly to the continuing operations of the Group, we have
decided to change our presentation to include these charges within
underlying operating profit. The relevant comparatives have been
restated.
Foreign exchange
The primary US dollar exchange rates relevant to the Group's
2018 results were as follows:
2018 2017
Period end Average Period end Average
Sterling 1.27 1.34 1.35 1.29
Canadian dollars 0.73 0.77 0.80 0.77
------------------ ----------- -------- ----------- --------
The Group reports in US dollars, its primary trading currency.
It also transacts business in Canadian dollars, Sterling and Euros.
Sterling/US dollar is the exchange rate most likely to impact the
Group's financial performance.
The primary foreign exchange considerations relevant to the
Group's operations are as follows:
-- 97% of the Group's revenue is in US dollars, the Group's
reporting currency, hence translational risk in the income
statement is low. The net impact on the 2018 income statement from
trading currency movements was not material to the Group's
results.
-- Most of the constituent elements of the Group balance sheet
are US dollar-based. The main exception is the Sterling-based
defined benefit pension liability. Currency movements produced an
exchange gain on the pension liability in the year of $1.0m.
-- The Group's business model is characterised by strong cash
generation, mostly in US dollars. However its primary applications
of post-tax cash are Shareholder dividends, pension contributions
and some Head Office costs, all of which are paid in Sterling. As
such, the Group's cash position is sensitive to Sterling/US dollar
exchange movements. By way of example, using actual exchange rates,
the weakening of Sterling against the US dollar during 2018 meant
that every US$1m converted to Sterling was worth around GBP48,000
more at the 2018 closing rate compared to the 2017 closing
rate.
Share option charges
A total of $0.82m (2017: $0.55m) was charged in the year in
respect of IFRS 2 'Share-based Payments'. This was made up of
elements from: (i) executive awards made under the 2015 Incentive
Plan; (ii) charges relating to the 2016 UK SAYE and the 2016 US
ESPP plans; and (iii) options granted under the 2018 US ESPP
plan.
Current options and awards outstanding are 133,366 shares under
the UK SAYE and US ESPP plans and 55,481 shares under the 2015
Incentive Plan. Awards under the 2015 Incentive Plan in respect of
2018 are anticipated to be made in late March 2019.
Exceptional items
An exceptional item of $0.72m was charged in the year. This
related to past service costs resulting from Guaranteed Minimum
Pension equalisation in our defined benefit pension scheme
following the Lloyds case (see note 2). In 2017 $0.46m was charged
to exceptional items relating to a pension risk reduction project
that has now been completed.
Net finance income
Net finance income for the year was $0.23m (2017: expense of
$0.12m). The year-over-year positive swing of $0.35m reflects lower
non-utilisation fees on committed lines of credit and improving
yields on cash deposits.
Taxation
The tax charge for the year was $8.95m (2017: $11.73m), giving
an effective tax rate of 20% (2017: 29%). The charge comprised
current tax of $8.17m, representing tax payable in the USA, and a
deferred tax charge of $0.78m. The material decrease in overall
rate between years was due principally to significant changes in
the US federal corporate tax rate following US tax reform
legislation enacted in December 2017.
The tax charge relating to underlying profit before tax was
$9.23m (2017: $11.97m), an effective tax rate of 20% (2017:
29%).
Earnings per share
Underlying basic earnings per share was 129.77c, (2017:
106.74c), an increase of 22%. This reflects the 9% increase in
underlying profit before tax, amplified by the beneficial effect of
US tax reform on the Group's effective tax rate, with a
substantially similar weighted average number of shares in issue
compared to 2017.
Basic earnings per share was 125.61c (2017: 103.15c), also an
increase of 22%.
Dividends
Dividends are determined in US dollars and paid in Sterling,
converted at the exchange rate on the date that the dividend is
determined.
The Board has proposed a final dividend of 49.20c (2017: 40.00c)
which, together with the interim dividend of 20.80c, gives a total
paid and proposed regular dividend relating to 2018 of 70.00c, an
increase of 20% compared to prior year.
The final dividend has been converted to Sterling at an exchange
rate of GBP1.00/$1.319 (2017: GBP1.00/$1.390). This results in a
final dividend payable to Shareholders of 37.30p (2017: 28.78p),
which, combined with the interim dividend paid of 15.85p, gives a
total dividend for the year of 53.15p, an increase of 25% compared
to prior year.
The final dividend will be paid on 15 May 2019 to Shareholders
on the register at the close of business on 5 April 2019.
Defined benefit pension plan
The Group sponsors a legacy defined benefit pension plan which
has been closed to new members and future accruals for many years.
This plan is the successor arrangement to the previous, much larger
defined benefit scheme which was successfully de-risked and
wound-up in December 2017. The new plan has equivalent benefits to
the previous scheme, and currently has 95 pensioners and 292
deferred members.
At 29 December 2018, the net deficit of the plan on an IAS 19
basis was $15.02m, compared to $18.11m at 30 December 2017. At 29
December 2018 gross scheme liabilities under IAS 19 were $33.10m,
and assets were $18.08m.
The change in deficit is analysed as follows:
$m
------------------------------------------------------------------------ --------
IAS 19 deficit at 31 December 2017 (18.11)
Company contributions to the scheme 3.93
Pension administration costs (0.32)
Pension costs - exceptional (0.72)
Pension finance charge (0.40)
Re-measurement loss due to changes in assumptions and return on assets (0.37)
Exchange gain 0.97
------------------------------------------------------------------------ --------
IAS 19 deficit at 29 December 2018 (15.02)
------------------------------------------------------------------------ --------
The net liability reduced by $3.09m in the year, driven
primarily by employer's contributions of $3.93m. Return on assets
was below expectations, but was largely offset by improving
financial assumptions and an exchange gain. In Sterling, the net
deficit decreased by GBP1.57m in the year to GBP11.83m.
A full actuarial valuation was performed in respect of the plan
in September 2016. Following this valuation a new deficit recovery
contribution schedule was agreed with the Trustee. Under this
agreement, contributions of GBP2.25m per annum were payable by the
Company. These contributions commenced on 1 July 2017, and rise by
3% per annum, with the first increase applied in July 2018. The
agreement is for a period of 5 years 7 months until 31 January
2023, at which point the funding shortfall is expected to be
eliminated. In addition, and consistent with previous practice, an
annual allowance of GBP0.25m will be paid to the Plan towards the
costs of its administration and management.
Additionally, the Company is committed to funding agreed
transfer values out of the Plan, at a funding rate of 50% of the
transfer value. $0.56m was paid in 2018 in respect of transfers out
of the Plan.
Cash flow
The Group had net cash of $27.48m at 29 December 2018, a
decrease of $3.29m over the 30 December 2017 balance of
$30.77m.
Cash flow in the period is summarised as follows:
2017
2018 (restated)
$m $m
----------------------------------------- -------- ------------
Underlying operating profit 45.36 42.03
Share option related charges 0.81 0.55
Depreciation and amortisation 2.65 2.51
Change in working capital (3.19) (0.46)
Capital expenditure (2.86) (2.36)
----------------------------------------- -------- ------------
Underlying operating cash flow 42.77 42.27
Tax and interest (7.62) (12.87)
Defined benefit pension contributions (3.93) (3.67)
Own share transactions (0.47) (1.36)
Exceptional items (0.05) (0.05)
Exchange (loss)/gain (1.01) 0.62
Free cash flow 29.69 24.94
Dividends to Shareholders (32.98) (15.85)
----------------------------------------- -------- ------------
Net cash (outflow)/inflow in the period (3.29) 9.09
----------------------------------------- -------- ------------
Underlying has been restated to include share option
charges.
The Group's cash flow performance remained strong in 2018. The
business model is efficient in working capital usage and typically
has low fixed capital requirements. The operating cash conversion
rate for the year was 94%.
$29.69m of free cash flow was generated in the period, (2017:
$24.94m), evidencing the beneficial effects of US tax reform.
Dividends to Shareholders includes the supplementary dividend of
60.00c per share paid in May 2018.
Balance sheet and Shareholders' funds
Net assets at 29 December 2018 were $43.27m, compared to $42.09m
at 30 December 2017. The balance sheet is summarised as
follows:
29 December 30 December
2018 2017
$m $m
---------------------------------- ------------ ------------
Non-current assets 25.73 25.88
Working capital 5.85 3.99
Net cash 27.48 30.77
Pension deficit (15.02) (18.11)
Other assets/(liabilities) - net (0.77) (0.44)
Net assets 43.27 42.09
---------------------------------- ------------ ------------
Shareholders' funds increased by $1.18m, comprising: net profit
in the period of $35.19m; $(0.43)m of exchange losses; net $nil of
pension related movements; $0.87m of net share option related
movements; $1.72m of proceeds from options exercised; $(2.18)m
relating to purchase of own shares; $(32.98)m equity dividends paid
to Shareholders; and an adjustment to opening net equity of
$(1.01)m arising from the implementation of IFRS15, (see note
9).
Balance sheet funding
The Board is committed to aligning the Group's funding with its
strategic priorities. This requires a stable, secure and flexible
balance sheet through the cycle. The Group will therefore typically
remain ungeared and hold a net cash position.
The Board's funding guidelines aim to provide operational and
financial flexibility:
-- to facilitate continued investment in marketing, people and
technology through different economic cycles, recognising that an
economic downturn typically represents a market share opportunity
for the business;
-- to protect the ability of the business to act swiftly as
growth opportunities arise in accordance with the Group's capital
allocation guidelines;
-- to underpin a commitment to Shareholders through the
maintenance of regular interim and final dividend payments; and
-- to meet our pension contribution commitments as they fall due.
The quantum of the net cash position target at each year-end
will be influenced broadly by reference to the investment
requirements of the business, and the subsequent year's anticipated
full year ordinary dividend and pension payment obligations.
The Board will keep these guidelines under review and is
prepared to be flexible if circumstances warrant.
Capital allocation
The Board's capital allocation framework is designed to deliver
increasing Shareholder value, driven by the execution of the
Group's growth strategy. The Group's capital allocation priorities
are:
-- Organic growth investments
o Either capital projects or those expensed in the income
statement
o Market share opportunities in existing markets
-- Interim and final dividend payments
o Increasing broadly in line with earnings per share through the
cycle
o Aim to at least maintain dividend per share in a downturn
-- Residual legacy pension funding
o In line with agreed deficit recovery funding schedule
o Further de-risking initiatives, if viable
-- Mergers & acquisitions
o Not a near term priority
o Opportunities that would support organic growth
-- Other Shareholder distributions
o Quantified by reference to cash over and above balance sheet
funding requirement
o Supplementary dividends most likely method; other methods may
be considered
Treasury policy
The financial requirements of the Group are managed through a
centralised treasury policy. The Group operates cash pooling
arrangements for its North American operations. Forward contracts
may be taken out to buy or sell currencies relating to specific
receivables and payables as well as remittances from overseas
subsidiaries. There were no forward contracts open at the period
end or prior period end. The Group holds the majority of its cash
with its principal US and UK bankers.
The Group has $20.5m of working capital facilities with its
principal US bank, JPMorgan Chase, N.A. The interest rate is US$
LIBOR plus 1.5%, and the facilities expire on 31 May 2020 ($20.0m
US facility) and 31 August 2019 ($0.5m Canadian facility). In
addition, an overdraft facility of GBP1.0m, with an interest rate
of bank base rate plus 2.0%, is available from the Group's
principal UK bank, Lloyds Bank plc.
Critical accounting policies
Critical accounting policies are those that require significant
judgments or estimates and potentially result in materially
different results under different assumptions or conditions. It is
considered that the only critical accounting policy is in respect
of pensions.
Brexit risk
The uncertainty surrounding the Brexit process is unhelpful.
Overall, however, we consider that the nature and geography of the
Group's operations, with 97% of the Group's revenue originating in
North America, leave it in a strong position to absorb any negative
effects.
The most likely impact - that from exchange rate volatility - is
addressed in our risk matrix which is available on the Company's
corporate website http://investors.4imprint.com.
We do not consider that Brexit creates any real change in the
Group's principal risks and uncertainties, nor does it have any
material effect on our evaluation of going concern or viability
analysis.
Our UK business (3% of Group revenue), may be affected by any
general economic malaise due to Brexit. In addition, if Brexit
results in any significant depreciation in the value of Sterling,
imported product would likely become more expensive, potentially
squeezing margins or choking demand if price increases are passed
on to customers. Also, under a "no deal" scenario suppliers may
experience difficulties with imports held up at ports and sales to
EU customers amounting to around GBP1m per year may become subject
to tariffs, additional administration and resulting delays.
Our remaining legacy defined benefit pension liability could be
negatively impacted if Brexit results in lower bond yields,
affecting discount rate assumptions in the plan valuation, or
leading to falls in the value of investments held in the plan.
Kevin Lyons-Tarr David Seekings
Chief Executive Officer Chief Financial Officer
5 March 2019
Group Income Statement for the 52 weeks ended 29 December
2018
2018 2017
Note $'000 $'000
------------------------------------------- ---- --------- ---------
Revenue 1 738,418 627,518
Operating expenses (694,096) (586,234)
Operating profit before exceptional items 45,043 41,738
Exceptional items 2 (721) (454)
------------------------------------------- ---- --------- ---------
Operating profit 1 44,322 41,284
Finance income 250 3
Finance costs (23) (125)
Pension finance charge (403) (503)
------------------------------------------- ---- --------- ---------
Net finance cost (176) (625)
Profit before tax 44,146 40,659
Taxation 3 (8,952) (11,734)
------------------------------------------- ---- --------- ---------
Profit for the period 35,194 28,925
------------------------------------------- ---- --------- ---------
Cents Cents
------------------------------------------- ---- --------- ---------
Earnings per share
Basic 4 125.61 103.15
Diluted 4 125.22 102.84
Underlying basic 4 129.77 106.74
------------------------------------------- ---- --------- ---------
Underlying has been restated to include share option
charges.
Group Statement of Comprehensive Income for the 52 weeks ended
29 December 2018
2018 2017
Note $'000 $'000
Profit for the period 35,194 28,925
----------------------------------------------------- ---- ------- ------
Other comprehensive (expense)/income
Items that may be reclassified subsequently
to the income statement:
Currency translation differences (434) (559)
Items that will not be reclassified subsequently
to the income statement:
Re-measurement gains on post-employment obligations 6 1,582 88
Return on pension scheme assets (excluding
interest income) 6 (1,951) 343
Tax relating to components of other comprehensive
income 390 495
Effect of change in UK tax rate (21) 17
Total other comprehensive (expense)/income
net of tax (434) 384
----------------------------------------------------- ---- ------- ------
Total comprehensive income for the period 34,760 29,309
----------------------------------------------------- ---- ------- ------
Group Balance Sheet at 29 December 2018
2018 2017
Note $'000 $'000
------------------------------- ---- -------- --------
Non-current assets
Property, plant and equipment 19,012 18,829
Intangible assets 1,084 1,138
Deferred tax assets 5,636 5,912
25,732 25,879
------------------------------- ---- -------- --------
Current assets
Inventories 9,878 5,356
Trade and other receivables 46,228 46,309
Current tax debtor 644 472
Cash and cash equivalents 27,484 30,767
------------------------------- ---- -------- --------
84,234 82,904
------------------------------- ---- -------- --------
Current liabilities
Trade and other payables (50,252) (47,675)
Current tax creditor (500) -
Provisions - (146)
------------------------------- ---- -------- --------
(50,752) (47,821)
------------------------------- ---- -------- --------
Net current assets 33,482 35,083
------------------------------- ---- -------- --------
Non-current liabilities
Retirement benefit obligations 6 (15,016) (18,106)
Deferred tax liability (931) (763)
(15,947) (18,869)
------------------------------- ---- -------- --------
Net assets 43,267 42,093
------------------------------- ---- -------- --------
Shareholders' equity
Share capital 18,842 18,842
Share premium reserve 68,451 68,451
Other reserves 5,427 5,861
Retained earnings (49,453) (51,061)
------------------------------- ---- -------- --------
Total Shareholders' equity 43,267 42,093
------------------------------- ---- -------- --------
Group Statement of Changes in Shareholders' Equity for the 52
weeks ended 29 December 2018
Retained earnings
-----------------------
Share
Share premium Other Profit Total
capital reserve reserves Own shares and loss equity
$'000 $'000 $'000 $'000 $'000 $'000
----------------------------------------- --------- -------- --------- ------------ --------- --------
Balance at 1 January 2017 18,842 68,451 6,420 (422) (63,966) 29,325
Profit for the period 28,925 28,925
Other comprehensive income/(expense)
Currency translation differences (559) (559)
Re-measurement gains on post-employment
obligations 431 431
Deferred tax relating to post-employment
obligations (83) (83)
Deferred tax relating to losses 578 578
Effect of change in UK tax
rate 17 17
Total comprehensive income (559) 29,868 29,309
----------------------------------------- --------- -------- --------- ------------ --------- --------
Proceeds from options exercised 19 19
Own shares utilised 101 (101) -
Own shares purchased (1,378) (1,378)
Share-based payment charge 545 545
Deferred tax relating to share
options 33 33
Deferred tax relating to losses 110 110
Effect of change in tax rates (25) (25)
Dividends (15,845) (15,845)
----------------------------------------- --------- -------- --------- ------------ --------- --------
Balance at 30 December 2017 18,842 68,451 5,861 (1,699) (49,362) 42,093
Adjustments for changes in
accounting policy
(note 9) (1,011) (1,011)
----------------------------------------- --------- -------- --------- ------------ --------- --------
Balance at 31 December 2017
after adjustments 18,842 68,451 5,861 (1,699) (50,373) 41,082
----------------------------------------- --------- -------- --------- ------------ --------- --------
Profit for the period 35,194 35,194
Other comprehensive income/(expense)
Currency translation differences (434) (434)
Re-measurement losses on post-employment
obligations (369) (369)
Deferred tax relating to post-employment
obligations 69 69
Deferred tax relating to losses 321 321
Effect of change in tax rates (21) (21)
Total comprehensive income (434) 35,194 34,760
----------------------------------------- --------- -------- --------- ------------ --------- --------
Proceeds from options exercised 1,722 1,722
Own shares utilised 2,420 (2,420) -
Own shares purchased (2,187) (2,187)
Share-based payment charge 808 808
Deferred tax relating to share
options 6 6
Deferred tax relating to losses 60 60
Dividends (32,984) (32,984)
----------------------------------------- --------- -------- --------- ------------ --------- --------
Balance at 29 December 2018 18,842 68,451 5,427 (1,466) (47,987) 43,267
----------------------------------------- --------- -------- --------- ------------ --------- --------
Group Cash Flow Statement for the 52 weeks ended 29 December
2018
2018 2017
Note $'000 $'000
------------------------------------------------ ---- -------- --------
Cash flows from operating activities
Cash generated from operations 7 41,651 40,901
Tax paid (7,844) (12,751)
Finance income received 250 3
Finance costs paid (23) (125)
Net cash generated from operating activities 34,034 28,028
------------------------------------------------ ---- -------- --------
Cash flows from investing activities
Purchases of property, plant and equipment (2,492) (1,844)
Purchases of intangible assets (395) (518)
Proceeds from sale of property, plant and
equipment 32 3
Net cash used in investing activities (2,855) (2,359)
------------------------------------------------ ---- -------- --------
Cash flows from financing activities
Proceeds from share options exercised 1,722 19
Purchase of own shares (2,187) (1,378)
Dividends paid to Shareholders 5 (32,984) (15,845)
------------------------------------------------ ---- -------- --------
Net cash used in financing activities (33,449) (17,204)
------------------------------------------------ ---- -------- --------
Net movement in cash and cash equivalents (2,270) 8,465
Cash and cash equivalents at beginning of
the period 30,767 21,683
Exchange (losses)/gains on cash and cash
equivalents (1,013) 619
------------------------------------------------ ---- -------- --------
Cash and cash equivalents at end of the period 27,484 30,767
------------------------------------------------ ---- -------- --------
Analysis of cash and cash equivalents
Cash at bank and in hand 23,648 28,709
Short-term deposits 3,836 2,058
------------------------------------------------ ---- -------- --------
27,484 30,767
------------------------------------------------ ---- -------- --------
General information
4imprint Group plc, registered number 177991, is a public
limited company incorporated in England and Wales, domiciled in the
UK and listed on the London Stock Exchange. Its registered office
is 25 Southampton Buildings, London WC2A 1AL.
The Group presents the consolidated financial statements in US
dollars and numbers are shown in US dollars thousands. A
substantial portion of the Group's revenue and earnings are
denominated in US dollars and the Board is of the opinion that a US
dollar presentation gives a more meaningful view of the Group's
financial performance and position.
Accounting policies
The principal accounting policies adopted in the preparation of
these financial statements are those that will be set out in the
Group's Annual Report and Accounts 2018. These policies have been
consistently applied to all the periods presented, apart from those
affected by the implementation of IFRS 15 'Revenue from Contracts
with Customers' and IFRS 9 'Financial Instruments'. IFRS 15 impacts
the accounting policies for revenue. For timing of revenue
recognition, the consideration is now on meeting performance
obligations, both contractual and implied, rather than risks and
rewards of ownership. When weighing performance obligations against
risks and rewards of ownership and taking into account implied
promises in our business model, it has been concluded that all
revenue should now be recognised at the time of receipt by the
customer rather than on shipment. IFRS 9 impacts the classification
and measurement of financial assets and liabilities. The impact of
these changes on the Group in these financial statements is
minimal. For trade receivables we have moved to an expected loss
method of providing for future impairment, but there has been only
a minor increase in the provision. On initial application of IFRS 9
there has been no change in measurement of financial assets or
financial liabilities. The financial impacts of these two policy
changes are shown in note 9. Other accounting standards effective
for the first time in the period have had no impact on the Group's
financial statements.
Basis of preparation
This announcement was approved by the Board of Directors on 5
March 2019. The financial information in this announcement does not
constitute the Group's statutory accounts for the periods ended 29
December 2018 or 30 December 2017 but it is derived from those
accounts. Statutory accounts for 30 December 2017 have been
delivered to the Registrar of Companies, and those for 29 December
2018 will be delivered after the Annual General Meeting. The
auditors have reported on those accounts. Their reports were
unqualified, did not include a reference to any matters to which
the auditors drew attention by way of emphasis without qualifying
their report and did not contain a statement under section 498(2)
or (3) of the Companies Act 2006.
The audited consolidated financial statements from which these
results are extracted have been prepared under the historical cost
convention in accordance with IFRS (International Financial
Reporting Standards) as adopted by the EU, IFRS IC interpretations
and those parts of the Companies Act 2006 applicable to companies
reporting under IFRS. The standards used are those published by the
International Accounting Standards Board (IASB) and endorsed by the
EU and effective at the time of preparing these financial
statements (March 2019).
After making enquiries, the Directors have reasonable
expectations that the Group has adequate resources to continue to
operate for a period of at least twelve months from the date these
financial statements were approved. Accordingly, they continue to
adopt the going concern basis in preparing the consolidated
financial statements.
Use of assumptions and estimates
The preparation of the consolidated financial statements
requires management to make judgments, estimates and assumptions
that affect the application of policies and reported amounts of
assets, liabilities, income and expenses. The estimates and
associated assumptions are based on historical experiences and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making
judgments about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ
from these estimates. The key estimates are in respect of the
present value of the pension scheme obligations and the quantum of
tax losses recognised in the deferred tax asset. The assumptions
used for the pension scheme obligations are disclosed in note 6 and
the tax losses are recognised to the extent that the Directors
consider it probable that future taxable profits will be available
against which the losses can be utilised.
Critical accounting policies
Critical accounting policies are those that require significant
judgments or estimates and potentially result in materially
different results under different assumptions or conditions.
Management considers the following to be the only critical
accounting policy:
Pensions
As disclosed in note 6, the Group sponsors a defined benefit
pension scheme closed to new members and future accruals. Period
end recognition of the liabilities under this scheme and the
return on assets held to fund these liabilities require a number
of significant actuarial assumptions to be made including inflation
rate, discount rate and mortality rates. Small changes in assumptions
can have a significant impact on the expense recorded in the
income statement and on the pension liability in the balance
sheet.
1 Segmental reporting
The chief operating decision maker has been identified as the
Board of Directors and the segmental analysis is presented based on
the Group's internal reporting to the Board.
At 29 December 2018, the results of the Group are reported as
one primary operating segment plus share option related charges and
the costs of the Head Office:
Revenue
2018 2017
$'000 $'000
North America 714,554 607,997
UK and Ireland 23,864 19,521
------------------------------------------------- -------- --------
Total revenue from sale of promotional products 738,418 627,518
------------------------------------------------- -------- --------
Profit Underlying* Total
2018 2017 2018 2017
$'000 $'000 $'000 $'000
4imprint Direct Marketing 49,632 45,639 49,632 45,639
Head Office (3,454) (3,059) (3,454) (3,059)
Share option related charges (819) (551) (819) (551)
----------------------------------------------- --------- --------- -------- ---------
Underlying operating profit 45,359 42,029 45,359 42,029
Exceptional items (note 2) (721) (454)
Defined benefit pension scheme administration
costs (note 6) (316) (291)
----------------------------------------------- --------- --------- -------- ---------
Operating profit 45,359 42,029 44,322 41,284
Net finance income/(expense) 227 (122) 227 (122)
Pension finance charge (note 6) (403) (503)
----------------------------------------------- --------- --------- -------- ---------
Profit before tax 45,586 41,907 44,146 40,659
Taxation (9,226) (11,974) (8,952) (11,734)
----------------------------------------------- --------- --------- -------- ---------
Profit after tax 36,360 29,933 35,194 28,925
----------------------------------------------- --------- --------- -------- ---------
*Underlying has been restated to include share option
charges.
The Directors consider that underlying operating profit gives a
measure of the performance of the business by excluding one-off
charges and costs relating to a legacy defined benefit scheme, the
beneficiaries of which were employed by businesses disposed of by
the Group.
2 Exceptional items
2018 2017
$'000 $'000
------------------------------------------------------ ------- -------
Past service costs re defined benefit pension scheme
pensioner GMP equalisation 721 -
Pension buy-out costs - 454
721 454
------------------------------------------------------ ------- -------
The past service costs result from the High Court judgment in
the Lloyds case on 26 October 2018, which confirmed that the
equalisation of benefits between male and female members of the
defined benefit plan at retirement extends to Guaranteed Minimum
Pensions ("GMP"). The charge is an estimate calculated by the
Company's actuaries, based on key high-level data from the Plan's
last full actuarial valuation and the legal position as understood
at the date of these financial statements. The actual result may
differ from this estimate.
Pension buy-out costs include $nil (2017: $378,000) incurred and
paid by the defined benefit pension scheme, in respect of the
buy-out.
3 Taxation
2018 2017
$'000 $'000
Current tax
UK tax - current - -
Overseas tax - current 8,212 12,326
Overseas tax - prior periods (41) (12)
--------------------------------------------------- ------- -------
Total current tax 8,171 12,314
--------------------------------------------------- ------- -------
Deferred tax
Origination and reversal of temporary differences 803 (664)
Adjustment in respect of prior periods (22) 84
Total deferred tax 781 (580)
Taxation 8,952 11,734
--------------------------------------------------- ------- -------
The tax for the period is different to the standard rate of
corporation tax in the respective countries of operation. The
differences are explained below:
2018 2017
$'000 $'000
---------------------------------------------------------- -------- --------
Profit before tax 44,146 40,659
Profit before tax for each country of operation
multiplied by rate of corporation tax applicable
in the respective countries 10,452 13,775
Effects of:
Adjustments in respect of prior periods (63) 72
Expenses not deductible for tax purposes and non-taxable
income 105 87
Other differences (164) (105)
Effect of tax rate changes on deferred tax balances - (482)
Utilisation of tax losses not previously recognised (1,378) (1,613)
Taxation 8,952 11,734
---------------------------------------------------------- -------- --------
The main rate of UK corporation tax will reduce to 17% from 1
April 2020. The net deferred tax asset at 29 December 2018 has been
calculated at a tax rate of 19% in respect of UK deferred tax items
which are expected to reverse before 2020 and 17% in respect of UK
deferred tax items expected to reverse thereafter.
The US federal tax rate was reduced to 21% from 1 January 2018.
US deferred tax items have been calculated at the 21% rate.
The amount of current tax recognised directly in Shareholders'
equity in 2018 was $nil (2017: $nil).
No current tax was recognised in other comprehensive income
(2017: $nil).
4 Earnings per share
Basic, diluted and underlying
The basic, diluted and underlying earnings per share are
calculated based on the following data:
2018 2017
$'000 $'000
Profit after tax 35,194 28,925
------------------ ------- -------
2018 2017
Number Number
'000 '000
----------------------------------------------- -------- -------------
Basic weighted average number of shares 28,018 28,042
Adjustment for employee share options 88 84
----------------------------------------------- -------- -------------
Diluted weighted average number of shares 28,106 28,126
----------------------------------------------- -------- -------------
2018 2017
Cents Cents
----------------------------------------------- -------- -------------
Basic earnings per share 125.61 103.15
----------------------------------------------- -------- -------------
Diluted earnings per share 125.22 102.84
----------------------------------------------- -------- -------------
2018
2017
(restated)
$'000 $'000
Profit before tax 44,146 40,659
Adjustments:
Exceptional items (note 2) 721 454
Defined benefit pension scheme administration
costs 316 291
Pension finance charge 403 503
----------------------------------------------- -------- -------------
Underlying profit before tax 45,586 41,907
Taxation (note 3) (8,952) (11,734)
Tax relating to above adjustments (274) (240)
----------------------------------------------- -------- -------------
Underlying profit after tax 36,360 29,933
----------------------------------------------- -------- -------------
2018 2017
Cents Cents
----------------------------------------------- -------- -------------
Underlying basic earnings per share 129.77 106.74
----------------------------------------------- -------- -------------
Underlying diluted basic earnings per share 129.37 106.42
----------------------------------------------- -------- -------------
Underlying has been restated to include share option
charges.
The basic weighted average number of shares excludes shares held
in the 4imprint Group plc employee share trusts. The effect of this
is to reduce the average by 67,125 (2017: 43,104).
The basic earnings per share is calculated based on the profit
for the financial period divided by the basic weighted average
number of shares.
For diluted earnings per share, the basic weighted average
number of ordinary shares in issue is adjusted to assume conversion
of all potential dilutive ordinary shares. The potential dilutive
ordinary shares relate to those share options granted to employees
where the exercise price is less than the average market price of
the Company's ordinary shares and are likely to vest at the balance
sheet date.
The underlying basic earnings per share is calculated before the
after-tax effect of exceptional items and defined benefit pension
charges and is included because the Directors consider this gives a
measure of the underlying performance of the ongoing business.
5 Dividends
2018 2017
Equity dividends - ordinary shares $'000 $'000
---------------------------------------- ------ ------
Interim paid: 20.80c (2017: 18.10c) 5,848 5,166
Supplementary paid: 60.00c (2017: nil) 16,282 -
Final paid: 40.00c (2017: 36.18c) 10,854 10,679
---------------------------------------- ------ ------
32,984 15,845
---------------------------------------- ------ ------
In addition, the Directors are proposing a final dividend in
respect of the period ended 29 December 2018 of 49.20c (37.30p)
per, which will absorb an estimated $13.8m of Shareholders'
funds. Subject to Shareholder approval at the AGM, these dividends
are payable on 15 May 2019 to Shareholders who are on the register
of members at close of business on 5 April 2019. These financial
statements do not reflect these proposed dividends.
6 Employee pension schemes
The Group operates defined contribution plans for its UK and US
employees. The regular contributions are charged to the income
statement as they are incurred. The charges recognised in the
income statement are:
2018 2017
$'000 $'000
----------------------------------------- ---- ---- ------- -------
Defined contribution plans - employers'
contributions 1,356 1,161
----------------------------------------------------- ------- -------
The Group also sponsors a UK defined benefit pension scheme
which is closed to new members and future accrual.
The amounts recognised in the income statement are as
follows:
2018 2017
$'000 $'000
---------------------------------------------- ------ ------
Administration costs paid by the scheme 316 291
Pension finance charge 403 503
Exceptional items - past service costs re GMP
equalisation 721 -
Exceptional items - buy-out costs paid by the
scheme - 378
Total defined benefit pension charge 1,440 1,172
---------------------------------------------- ------ ------
The amounts recognised in the balance sheet comprise:
2018 2017
$'000 $'000
----------------------------------------------- --------- ---------
Present value of funded obligations (33,103) (36,739)
Fair value of scheme assets 18,087 18,633
----------------------------------------------- --------- ---------
Net liability recognised in the balance sheet (15,016) (18,106)
----------------------------------------------- --------- ---------
A full actuarial valuation was undertaken as at 30 September
2016 in accordance with the scheme funding requirements of the
Pensions Act 2004. This actuarial valuation showed a deficit of
GBP14.9m. A recovery plan has been signed under which the Company
agreed a schedule of contributions with the Trustee. The recovery
plan period is 5 years 7 months and under the plan contributions of
GBP2.25m per annum are payable by the Company. These contributions
commenced on 1 July 2017. This amount rises annually by 3%. In
addition an annual allowance of GBP0.25m is payable towards costs
of administration of the scheme.
For the purposes of IAS 19, numbers from the actuarial valuation
as at 30 September 2016, which was carried out by a qualified
independent actuary, have been updated on an approximate basis to
29 December 2018. There have been no changes in the valuation
methodology adopted for this period's disclosures compared to the
previous period's disclosures.
The principal assumptions applied by the actuaries, as
determined by the Directors, at each period end were:
2018 2017
----------------------------------------- ------ ------
Rate of increase in pensions in payment 3.10% 3.05%
Rate of increase in deferred pensions 2.10% 2.05%
Discount rate 2.80% 2.50%
Inflation assumption - RPI 3.20% 3.15%
- CPI 2.10% 2.05%
----------------------------------------- ------ ------
The mortality assumptions adopted at 29 December 2018 reflect
the most recent version of the tables used in the last triennial
valuation. The assumptions imply the following life expectancies at
age 65:
2018 2017
------------------------ --------- ---------
Male currently age 40 23.4 yrs 23.3 yrs
Female currently age 40 25.3 yrs 25.3 yrs
Male currently age 65 21.9 yrs 21.9 yrs
Female currently age 65 23.8 yrs 23.7 yrs
------------------------ --------- ---------
Changes in the present value of the net defined benefit
obligation are as follows:
Present Fair value
value of of scheme
obligations assets Net obligation
$'000 $'000 $'000
------------ ---------- --------------
Balance at 1 January 2017 (34,357) 15,067 (19,290)
Administration costs paid by the scheme (291) - (291)
Exceptional items - buy-out costs paid
by the scheme (378) - (378)
Interest (expense)/income (941) 438 (503)
Return on scheme assets (excluding interest
income) - 343 343
Re-measurement gains due to changes in
demographic assumptions 611 - 611
Re-measurement losses due to changes in
financial assumptions (523) - (523)
Contributions by employer - 3,675 3,675
Benefits paid 2,465 (2,465) -
Exchange (loss)/gain (3,325) 1,575 (1,750)
-------------------------------------------- ------------ ---------- --------------
Balance at 30 December 2017 (36,739) 18,633 (18,106)
Administration costs paid by the scheme (316) - (316)
Exceptional items - past service costs
re GMP equalisation (721) - (721)
Interest (expense)/income (889) 486 (403)
Return on scheme assets (excluding interest
income) - (1,951) (1,951)
Re-measurement gains due to changes in
financial assumptions 1,582 - 1,582
Contributions by employer - 3,932 3,932
Benefits paid 1,848 (1,848) -
Exchange gain/(loss) 2,132 (1,165) 967
-------------------------------------------- ------------ ---------- --------------
Balance at 29 December 2018 (33,103) 18,087 (15,016)
-------------------------------------------- ------------ ---------- --------------
7 Cash generated from operations
2018 2017
$'000 $'000
------------------------------------------------ ------- -------
Operating profit 44,322 41,284
Adjustments for:
Depreciation charge 2,200 2,048
Amortisation of intangibles 445 464
Loss on disposal of fixed assets 7 4
Exceptional non-cash items 721 378
(Decrease)/increase in exceptional accrual (52) 19
Share option charges 808 545
Defined benefit pension administration charge 316 291
Contributions to defined benefit pension scheme (3,932) (3,675)
Changes in working capital:
Increase in inventories (2,266) (1,176)
Increase in trade and other receivables (2,422) (6,324)
Increase in trade and other payables 1,504 7,043
Cash generated from operations 41,651 40,901
------------------------------------------------ ------- -------
8 Related party transactions
The Group did not participate in any related party
transactions.
9 Impact of new accounting standards
The implementation of IFRS 9 has had no material impact on the
financial results of the Group. The simplified expected loss model
for the trade receivables bad debt provisions results in an
immaterial increase in the provision. Trade and other receivables,
together with cash and cash equivalents, were categorised as 'Loans
and Receivables' under IAS39 and measured at amortised cost. This
category does not exist in IFRS9, but these items continue to be
measured at amortised cost. Additionally, there were no derivative
instruments at this or the prior period end. The Group's financial
instruments basis of valuation is unchanged from prior year.
The implementation of IFRS 15's performance obligations
requirement has resulted in a revision to the period end cut off
procedure for revenue recognition, to recognise revenue only when
the goods have been physically received by the customer. This
change has little full year on year impact on the financial results
of the Group (2017: $0.2m operating profit reduction) and so the
decision was taken to take advantage of the option not to restate
prior periods. This results in an opening adjustment to reduce net
equity by $1,011,000 as follows:
Opening
30 Dec Opening 31 Dec
2017 IFRS 2017
Balance sheet As reported 15 adjustment Revised
$'000 $'000 $'000
-------------------------------- ------------- --------------- ---------
Non-current assets 25,879 - 25,879
Current assets
Inventories 5,356 2,584 7,940
Trade and other receivables 46,309 (2,657) 43,652
Current tax 472 - 472
Cash and cash equivalents 30,767 - 30,767
-------------------------------- ------------- --------------- ---------
82,904 (73) 82,831
-------------------------------- ------------- --------------- ---------
Current liabilities
Trade and other payables (47,675) (1,203) (48,878)
Provisions (146) - (146)
(47,821) (1,203) (49,024)
-------------------------------- ------------- --------------- ---------
Net current assets 35,083 (1,276) 33,807
-------------------------------- ------------- --------------- ---------
Non-current liabilities
Retirement benefit obligations (18,106) - (18,106)
Deferred tax liability (763) 265 (498)
-------------------------------- ------------- --------------- ---------
(18,869) 265 (18,604)
Net assets 42,093 (1,011) 41,082
-------------------------------- ------------- --------------- ---------
The impact on the year-end balance sheet and results for the
period are as follows:
29 Dec
29 Dec IFRS 15 2018
Balance sheet 2018 adjustment As reported
$'000 $'000 $'000
-------------------------------- --------- ------------ -------------
Non-current assets 25,732 - 25,732
Current assets
Inventories 6,890 2,988 9,878
Trade and other receivables 50,065 (3,837) 46,228
Current tax 644 - 644
Cash and cash equivalents 27,484 - 27,484
-------------------------------- --------- ------------ -------------
85,083 (849) 84,234
-------------------------------- --------- ------------ -------------
Current liabilities
Trade and other payables (49,483) (769) (50,252)
Current tax (840) 340 (500)
(50,323) (429) (50,752)
-------------------------------- --------- ------------ -------------
Net current assets 34,760 (1,278) 33,482
-------------------------------- --------- ------------ -------------
Non-current liabilities
Retirement benefit obligations (15,016) - (15,016)
Deferred tax liability (931) - (931)
-------------------------------- --------- ------------ -------------
(15,947) - (15,947)
Net assets 44,545 (1,278) 43,267
-------------------------------- --------- ------------ -------------
IFRS 52 weeks
52 weeks 15 adjustment ended
ended 29 Dec
29 Dec 2018
Income statement 2018 As reported
$'000 $'000 $'000
------------------------ ---------- --------------- -------------
Revenue 739,646 (1,228) 738,418
Operating expenses (694,982) 886 (694,096)
------------------------ ---------- --------------- -------------
Operating profit 44,664 (342) 44,322
------------------------ ---------- --------------- -------------
Finance income 250 - 250
Finance costs (23) - (23)
Pension finance charge (403) - (403)
------------------------ ---------- --------------- -------------
Net finance cost (176) - (176)
------------------------ ---------- --------------- -------------
Profit before tax 44,488 (342) 44,146
Taxation (9,027) 75 (8,952)
------------------------ ---------- --------------- -------------
Profit for the period 35,461 (267) 35,194
------------------------ ---------- --------------- -------------
Earnings per share
Basic 126.57 125.61
Diluted 126.17 125.22
------------------------ ---------- --------------- -------------
10 Principal risks and uncertainties
The principal risks and uncertainties which the business faces
are: macroeconomic conditions; competition; currency exchange;
business facility disruption; disruption to the product supply
chain or delivery service; disturbance in established marketing
techniques; reliance on key personnel; failure or interruption of
IT systems and infrastructure; failure to adapt to new
technological innovations; and security of customer data. A full
description of these risks and the mitigating actions taken by the
Group is available on the Company's corporate website
http://investors.4imprint.com.
Statement of Directors' responsibilities
Each of the Directors confirms that, to the best of their
knowledge:
-- the financial statements within the full Annual Report and
Accounts from which the financial information within this Final
Results Announcement has been extracted, have been prepared in
accordance with IFRSs as adopted by the EU, give a true and fair
view of the assets, liabilities, financial position and profit of
the Company and the undertakings included in the consolidation
taken as a whole; and
-- the Chief Executive's Review and Financial Review, and
Principal risks and uncertainties (note 10) include a fair review
of the development and performance of the business and the position
of the Company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal
risks and uncertainties that it faces.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR USAWRKSAORAR
(END) Dow Jones Newswires
March 05, 2019 02:00 ET (07:00 GMT)
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