4imprint Group Plc (AQSE:FOUR) shares jumped 21% as the company said it would meet or exceed its target of US$1bn in group revenue this year given "strong" growth in order counts and order values.
The direct marketer and promotional merchandise said it expects operating profit for 2022 to be "materially above" the consensus of analyst forecasts and not less than US$75mln.
The company had earlier said operating profit for the full year 2022 was expected to be above even the highest analyst forecast with revenues on track to break above its long-awaited US$1bn milestone.
In a trading update, the company said performance in North America is up 14% over 2019, average order values are also up 14%, and overall demand revenue is up 30% over the same period in 2019.
The company said 2019 is the most recent comparable 'normal' year given the pandemic.
Revenue volume growth coupled with leverage in the business model were cited as the driving factors for the favourable profitability dynamic, with gross margins remaining relatively steady in an inflationary environment, and operational gearing outpacing the cost base.
Despite improved expectations for the group's performance in 2022, the company warned that geopolitical and economic uncertainties, including the threat of recession, could affect the group's performance during the remainder of the year.