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."
moved higher following the company's in-line results as the integrated support services company said it had good revenue visibility going forward and unveiled two acquisitions.
Revenue for the 12 months ended December 31st fell 7% to £4.1bn from £4.4bn a year earlier, primarily due to the rescaling of the UK construction business.
Reported pre-tax profit plunged by a third to £110.6m, although on an underlying basis profit was down 13% from £200m to £174.7m, reflecting business rescaling and an increase in the net financial expense. Underlying earnings per share fell 14% from 40.4p to 34.7p.
However, the full-year dividend was increased by 0.25p to 17.50p a share.
Chairman Philip Rogerson said: "In 2013, Carillion has continued to respond decisively to challenging market conditions, including completing the rescaling of its UK construction activities and the restructuring of its energy services business, which are now aligned in size to their respective markets, while continuing to develop and strengthen its positions in new and existing markets that offer good opportunities for growth.
"Overall, we expect market conditions to remain challenging in 2014, but with a strong order book, good revenue visibility and substantial pipeline of contract opportunities the group is now well positioned for the future."
Looking ahead its revenue visibility was 81%, up from 75% at the same point in 2012.
The company also announced that it has won support services contracts worth over £370m having been selected as the preferred bidder by Canada Natural Resources and Royal Bank of Scotland, as well as winning a contract with Arqiva.
The group's joint venture business in the United Arab Emirates, Al Futtaim Carillion, was also awarded a contract in the Middle East worth in the region of £150m.