Marketing services provider 4Imprint (LSE: FOUR) has seen its share value retreat from record peaks around £16.50 in recent weeks. But I reckon the company should punch fresh peaks sooner rather than later.
4imprint — which manufactures a wide range of promotional gifts like T-shirts, flasks and stationery — advised in August that revenues galloped 17% during January-June, to $270.2m, a result that drove underlying pre-tax profit 18% higher to $14.3m.
The company continues to enjoy robust demand from both the US and UK, and it clocked up 529,000 orders in the period compared with 450,000 a year earlier. And critically 4Imprint generates more than 90% of group sales from across the Pond, lessening the potential impact of Brexit on future sales.
The City expects earnings to swell 19% and 10% in 2016 and 2017 respectively. While these figures may create heady P/E ratios of 21.5 times and 19.4 times, I reckon the firm’s terrific top-line momentum warrants such a premium.
Masks mammoth
Defence giant Avon Rubber (LSE: AVON) spiked to its highest since January last week after the release of bubbly half-year numbers.
The mask-maker continues to witness brilliant demand for its hi-tech face protectors, and announced on Friday that its CBRN/CO Escape Hood had received orders worth $9m from a US police department following regulatory approval.
North America is a big deal for Avon Rubber given the enduring popularity of its masks with the Department of Defense. And while order timings remain problematic, I expect sales to keep streaming in well into the future, particularly as shipments into other territories heat up.
Allied to this, improving dairy market conditions are helping to bolster the revenues outlook for Avon Rubber’s milking products too.
The company is expected to follow a predicted 19% earnings rise in the period to September 2016 with a 14% fall in the following year. Regardless of any immediate bottom-line bumpiness, I reckon Avon Rubber remains a terrific long-term growth selection, and a good value pick given its forward P/E multiple of just 13.8 times.
Open the door to huge returns
Buoyant housebuilding activity in the US and beyond bodes well for door and window parts manufacturer Tyman (LSE: TYMN) too.
The manufacturer saw revenues leap $14.6m in the first six months of 2016, to $201m, helping underlying pre-tax profit surge by more than a third, to $24.5m.
And Tyman has made shrewd acquisitions in recent months to boost its solid organic prospects. The business snapped up North American roof vent producer Bilco in July for $71m, a move that follows the purchase of Italian door and window manufacturer Giesse earlier this year in a deal that significantly bolsters the firm’s opportunities in Europe and Asia.
Tyman is expected to generate earnings expansion of 11% in 2016 and 14% next year, resulting in very-decent P/E ratings of 13.1 times and 11.4 times. I reckon the firm is a steal at current prices.
