4imprint (asi/197045), the largest distributor by revenue in the promotional products industry, increased annual sales, profits and earnings per share in 2018, according to financial data the U.K.-headquartered company released early Tuesday.

Global sales soared about 18% to $738.41 million. Of that tally, 4imprint generated $714.56 million in sales in North America – also an 18% year-over-year rise. Sales in the U.K. and Ireland were up 22% over 2017 to nearly $24 million.

Paul Moody, Chairman, 4imprint

All revenue growth was organic, with retention rates stable and 4imprint adding 279,000 new customers over the course of the year, the company said. Total orders shot up more than 17% to nearly 1.39 million.

“2018 was a memorable year for 4imprint,” said company Chairman Paul Moody. “The group’s operational and financial performance represents substantial progress towards our target of achieving $1 billion in group revenue by 2022.”

In 2018, 4imprint’s profits after tax improved 22% to $35.2 million. Favorable impact from U.S. tax reform helped propel the gain. The profit rise, Moody said, was particularly rewarding given that 4imprint approached 2018 as an investment year and was initially anticipating profits to be flat against 2017.

“This time last year we announced an exciting new project to heighten the awareness and strength of the 4imprint brand,” said Moody. “Our plan involved significant incremental expenditure on different marketing techniques, including the integration of traditional broadcast media such as TV and radio, into our overall marketing portfolio. The results so far from the brand development program have exceeded our expectations, with tangible and immediate gains in customer order activity contributing directly to the group’s strong financial performance.”

Accordingly, 4imprint’s basic earnings per share (EPS) rose from 103.15 cents in 2017 to 125.61 cents in 2018. Similarly, diluted EPS was up from 102.84 cents to 125.22 cents.

Given its investment initiatives, 4imprint’s net cash flow ended 2018 at $27.48 million -- about $3.3 million down from 2017. Still, Moody said 4imprint remains well-financed, adding that the year-end balance was high “even after absorbing the payment in May 2018 of a supplementary dividend amounting to $16.3 million.”

Among its 2019 initiatives, 4imprint plans to expand its Oshkosh, WI distribution center – a project expected to cost about $5 million. “Our business model is highly focused and our market opportunity remains substantial,” Moody said. “The successful initial execution of the brand-building initiative in 2018 leaves the group in a good position to meet its strategic goals.”

If there are any dark clouds in 4imprint’s sky, then they would appear to be the looming “Brexit” – the United Kingdom’s planned March 29^th exit from the European Union. 4imprint said its U.K. business could be affected by a general economic malaise related to Brexit.

“If Brexit results in any significant depreciation in the value of Sterling, imported product would likely become more expensive, potentially squeezing margins or choking demand if price increases are passed on to customers,” the company said. There’s also potential for suppliers to experience “difficulties with imports held up at ports and sales to EU customers amounting to around £1 million per year may become subject to tariffs, additional administration and resulting delays.”

Despite such potential issues, 4imprint doesn’t anticipate a major impact to its overall business from Brexit, primarily because the vast majority of the firm’s sales are generated in North America. “We consider that the nature and geography of the group’s operations…leave it in a strong position to absorb any negative effects,” Moody said.

With reported 2017 North American promotional product revenue of $608 million, 4imprint ranks 1^st on Counselor’s most recent list of the largest distributors in the promotional products industry.