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IG Design Group (IGR)

IG Design Group (IGR) Preliminiary results March 2016

29 June 2016

Paul Fineman, CEO talks about preliminary results for the year ended 31st March 2016, released 29th June 2016
https://www.investegate.co.uk/ig-design-group-plc–igr-/rns/preliminary-results/201606290700075626C/
In summary, he says:
Great results:
– Revenue +3.5%
– Pre Tax Profit +35%
– Gross margin +0.8%
– Generated 27m in operating cash flow
– Debt down 40%
– EBITDA to debt ratio x1
With a strong US performance: 34% increase in profits, and +66% increase in Australia
USA improved sales to all customers, with the new management team.
We’ve delivered a major capital investment programme in US, so we’re geared for excellent growth for year ahead.
The dividend of 2.5p, increased ahead of where management expected – due to accelerated profits and cash flow.
The growth strategy going forward:
– We not only supply gift packaging, and have moved into celebration, providing party ware
– Retail collateral: beyond just products for resale, now consumables that retailers (global brands) give away
– Design led stationery and creative play products
– Leveraging relationships with retailers and partner suppliers using our design strength, competence and dependability
– We have the best people conducting best practice
Why the change of name?
Greetings now only 10% of our activities; design is core to our offering so IG Design Group, with the brand: Design Group. This reflects the true nature of the business.
Impact of Brexit on IG Design?
We are diversified internationally with two-thirds of business outside the UK.
The one-third of revenue is manufactured in the country in which we sell. So, EU – manufactured in Holland; US – manufactured in US; UK manufacture to British and some overseas markets.
Imports coming in from the Far East are bought in US$ with currency hedged to cover the forward order book – so little fx exposure.
Overseas earnings when translated into £ will enhance our position.
We’re in a competitive market but we’re well placed, with a tremendous management team. We have the unique blend of creativity and reliability.
We’re diversified with a design led product, supplying over 150k stores; 5,000 customers in 80 countries, supported by global funding arrangements. We’re well placed for future growth.

 

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