4imprint Group PLC US Tax Reform (2812B)
January 09 2018 - 2:00AM
UK Regulatory
TIDMFOUR
RNS Number : 2812B
4imprint Group PLC
09 January 2018
4imprint Group plc
9 January 2018
Impact on 4imprint from US Tax Reform
4imprint Group plc (the "Group"), the leading international
direct marketer of promotional products, today provides guidance on
the expected impact on the Group from recent US tax legislation,
("US Tax Reform").
Given that most of 4imprint's operations (97% of Group revenue)
are based in the USA, the Board expects that US Tax Reform will
have a beneficial impact on the Group's prospective financial
position.
For the year ended 30 December 2017, no change is expected to
the Group effective tax rate previously guided at c.30%. The
revaluation of relevant non-cash deferred tax items at the new US
corporate tax rate is not expected to produce a material effect on
the Group's 2017 financial statements.
For the 2018 financial year and beyond, however, the reduction
in the Federal tax rate from 35% to 21% is expected to have a
positive impact on the Group's financial results. Initial
projections indicate that the Group's effective tax rate would
decrease from c.30% in 2017, settling in the low 20's% from 2018
onwards. This would result in a beneficial impact on earnings per
share calculations. In addition, substantially all of the rate
change is likely to translate into lower tax payments, thereby
enhancing the cash generation capability of the Group.
The final US Tax Reform legislation is extensive and complex,
and the full implications for the Group are still being analysed.
It is anticipated that more detailed guidance will be given at the
time of the announcement of the Group's final results in early
March 2018. In the meantime, the Group plans to issue its usual
January trading update on 17 January 2018.
For further information, please contact:
4imprint Group plc MHP Communications
Tel: + 44 (0) 20 7299 7201 Tel: + 44 (0) 20 3128 8794
Kevin Lyons-Tarr, Chief Executive Officer Katie Hunt
David Seekings, Chief Financial Officer Nessyah Hart
Note: This announcement includes inside information as defined
in Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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