4imprint Group - Business model strengths play out

4imprint’s trading update indicates some encouraging signs, albeit within continuing general caution around the impact of COVID-19 on the US economy. Average order value is increasing as the proportion of apparel in the mix rises, with overall weekly revenue over the last four weeks around 65% of prior year. This is in line with the assumptions underlying our model and there are no changes to our forecasts. The group has a strong balance sheet, with $40.1m of cash at end October (lease debt only). We continue to view 4imprint as a high-quality investment proposition.