GB : 4imprint Group - Encouraging start to FY 22

FY 21 FD EPS increased sevenfold, in line with expectations. The Q4 order count was running at c. 100% of 2019 levels and the exit rate was above that. As expected, growth in Apparel and supply-chain disruptions resulted in the delayed conversion of orders and increased working capital. However, supply-chain and COVID challenges have been managed, showing the flexibility of the model, and difficulties may start to ease. The start of the year has been encouraging and we left our FY 22 FD EPS unchanged but increased FY 23 by 2% at the results, to reflect our lower expectation of taxes. 180c of FD EPS should be achievable in the medium term. The shares are trading on a recovered P/E of 20.2x, vs a five-year average P/E of 28.7x.