4imprint Group - Upgrade from US reopening progress

4imprint’s AGM statement indicates improving momentum in its order intake as the US economy reopens. Having lifted our forecast numbers initially in March, we are now raising our FY21 revenue projection from $645m to $700m and our FY22e revenue by 6% to $765m. The operating margin is also on a recovering trend. In FY21, we would expect the group to put further funds into marketing spend to benefit from a strengthening trading backdrop, constraining the recovery in operating margin. Thereafter we anticipate margins reverting towards historical levels. The balance sheet remains strong, with end April net cash of $44m.