The promotional merchandise firm said it continues to acquire new customers and has no debt
4imprint Group PLC (LON:FOUR) said trading has been recovering from the 80% slump seen in April, although weekly orders remain at 50% of the same period last year.
The promotional merchandise firm said it continues to acquire new customers and the new-to-existing customer ratio has remained broadly stable over May and early June.
READ: 4imprint’s orders slump 80% amid coronavirus disruption
The group added that it’s two US sites and the UK site have reopened but those employees who can work from home are continuing to do so.
At the end of May 2020, the FTSE 250-listed group had cash balances of US$28.1mln, no debt and a working capital facility of US$20mln.
“The direct costs of retaining all labour despite the low volumes impacts margins this year and to a lesser extent next,” analysts at Peel Hunt commented.
“Notwithstanding the gross margin pressure we do expect the company to respond to the improved conditions by raising its marketing budget in absolute terms, for example it has continued to invest in TV brand marketing.”
Shares jumped 6% to 2,560p early on Tuesday.
–Adds analyst’s comment, shares–