LONDON (ShareCast) - Printing and marketing group 4imprint grew profits strongly last year and has now sold off its non-core promotional arm to concentrate on its flourishing direct marketing business.

Continued organic direct marketing growth in North America helped lift revenues 16% revenues to £212.9m, underlying pre-tax profits 36% to £12.5m and underlying earnings 42% to 35.51p per share.

Having in 2012 disposed of European promotional products distributor Brand Addition, 4imprint completed its transformation with the post-year end sale of SPS, a UK manufacturer of promotional products.

Chairman John Poulter said: "Following the sale of SPS, 4imprint is now a pure play Direct Marketing business with significant growth prospects. Early indications for 2014 are of continuing good operational performance in line with our aspirations although the dollar exchange rate will, if sustained, act as a headwind on performance measured in sterling."

Broker WH Ireland said the results, showing operating margins well ahead of target, provided "further evidence of the effectiveness of the company’s model".

"We believe that FOUR has significant further opportunities to grow by expanding its market share from the current around 2% in a $20bn market."

Shares in the company were up 3% to 695p at 13:50 on Wednesday.

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