- 4imprint Group expects US tax reform to have a beneficial impact on the group's prospective financial position.

It said that for the year ended 30 Dec 2017, no change was expected to the group effective tax rate previously guided at c.30%.

It said the revaluation of relevant non-cash deferred tax items at the new US corporate tax rate was not expected to produce a material effect on the Group's 2017 financial statements. But it said that for the 2018 financial year and beyond, the reduction in the federal tax rate from 35% to 21% was expected to have a positive impact on the group's financial results.

It said: '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.'

A statement said: '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.'

At 8:06am: [LON:FOUR] 4imprint Group PLC share price was +77.5p at 1952.5p

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