Shares in 4imprint surged on Tuesday after the promotional products group upgraded its full-year outlook, despite revenue dipping in the first ten months of the year.

The FTSE 250 company said it now expects full-year group revenue of not less than $1.32 billion, at the high end of the current range of analysts' forecasts, and pre-tax profit of not less than $142 million, above the current range.

At 1005 GMT, the shares were up 15.4% at 3,930p, making 4imprint one of the strongest risers in London trading on Tuesday.

Resilient trading despite lower revenue

4imprint, a direct marketer of promotional products such as branded mugs, bags and clothing, described its performance in the ten months to the end of October as resilient.

Group revenue in the first ten months dipped 2% on the same period a year earlier. Order intake has continued to run about 3% below the prior year, with average order values in line with last year.

The company said gross profit margin has remained strong at just below 33%, as product cost increases linked to tariffs are being phased in later than anticipated, while the marketing mix is providing flexibility.

Cash and investment

4imprint ended October with a cash balance of $124 million. Its board has approved about $10 million of capital expenditure for the relocation of its leased downtown office in Oshkosh, Wisconsin, to its recently expanded distribution centre, which is expected to be completed in mid-2026.

The upgrade stands out in a difficult trading backdrop for the promotional products market, where demand has been soft and customers have been cautious about spending. 4imprint's ability to protect its margins while holding order values steady appears to have reassured investors that the business can still grow profits even while revenue is slightly lower.

The upgrade is a shift from the picture at the half year, when 4imprint reported revenue of $666.4 million, up 1%, and adjusted operating profit of $62.5 million, down 12%, with the margin narrowing to 9.4% from 10.7%. At that stage the board had pointed to full-year revenue slightly above $1.35 billion and adjusted profit before tax of about $130 million. The new guidance implies slightly lower revenue than that earlier view, but a higher profit figure.

What it means for investors

The raised guidance puts 4imprint on course to beat the forecasts analysts had pencilled in for the year, with both revenue and profit now expected at or above the top of the range.

Investors will watch the group's full-year trading update in January for confirmation that the momentum held through the final two months of the year, and for any further detail on how tariff-related cost increases are being managed.