4imprint Group Plc (AQSE:FOUR) shares shot up almost 7% in early trade after the direct marketing products specialist announced a special dividend after a strong year.
Revenue of US$1.14bn was up 45% year on year and up 33% versus the pre-pandemic 2019, with the step-change in marketing productivity leading to operating profits surging 236% to US$103mln.
Basic earnings per share of 285.6p were up 86% on 2019 a 6% beat to consensus forecasts.
Bolstered by net cash of US$87mln at year-end, a regular dividend of US$1.60 (132.2p) was declared, along with a special dividend of US$2.00 (165.4p).
"Following an extremely strong trading performance in 2022, we enter the 2023 financial year with momentum and confidence. Trading results in the first few weeks of 2023 have been encouraging," said chairman Paul Moody.
The shares hit 4,890p in early trade, close to the recent all-time high, before retreating.
Broker Peel Hunt said 4imprint "has emerged from the pandemic as a stronger business than before and the special dividend demonstrates its confidence".
"In our view, the change in marketing strategy will not only benefit financial performance going forward, but it also has the potential to expand market share via increased brand awareness. While we are seeing significant positive change in the business, we believe this is yet to be reflected in the rating."
With the shares trading on 18 times 2023 estimated earnings, analysts noted this was circa 15% discount to pre-pandemic levels and reiterated a 'buy' rating.