Business
US Tax Reform
US Tax Reform.
About this update from 4imprint Group Plc
[{"type":"text","content":"\n \nRNS Number : 2812B 4imprint Group PLC 09 January 2018 \n\n4imprint Group plc\n9 January 2018\n \nImpact on 4imprint from US Tax Reform\n \n4imprint 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\").\n \nGiven 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. \n \nFor 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.\n \nFor 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.\n \nThe 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.\n \nFor further information, please contact:\n \n4imprint Group plc MHP Communications\nTel...