REG - IG Design Group PLC - Interim Results
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251202:nRSB7774Ja&default-theme=true
RNS Number : 7774J IG Design Group PLC 02 December 2025
2 December 2025
IG Design Group plc
(the "Company", the "Group" or "Design Group")
Results for the six months ended 30 September 2025
IG Design Group plc, a leading designer, innovator and manufacturer across
various celebration and creative categories, announces its unaudited results
for the six months ended 30 September 2025 ('the period').
Following the disposal of DG Americas, the following Executive Review is
presented on a continuing Group basis.
HY2026 highlights
HY2026 HY2025
Revenue $131.4m $151.3m
Adjusted((*)):
Operating profit $5.7m $12.9m
Profit before tax $5.3m $12.3m
Diluted earnings per share 4.9c 10.2c
Reported:
Operating profit $4.3m $8.6m
Profit before tax $3.7m $8.0m
Diluted earnings per share 4.1c 5.7c
Net cash at period end $1.9m $7.4m
*Adjusted results exclude the impact of adjusting items. For further detail
see alternative performance measures reconciliation within the detailed
financial review.
· Revenue fell 13% to $131.4 million reflecting softer UK demand and the impact
of US-tariffs, European pricing pressures, and timing of shipments moving into
H2.
· Adjusted operating profit of $5.7 million and adjusted operating margin of
4.3% fell year-on-year due to the impact of lower sales, partly offset by cost
savings and freight tailwinds.
· Net cash closed at $1.9 million, with Group cash outflow improving by 16%
year-on-year.
· Operational progress with the successful completion of Australian warehouse
relocation and China site closure underpinning continued focus on efficiency
and cost base.
· CEO recruitment process remains underway with Stewart Gilliland committed to
the role of Interim Executive Chair until an appointment has been finalised.
Outlook
· The Board reaffirms its full-year guidance of $270-280 million revenue and
adjusted operating margin of 3-4%.
· Strong orderbook visibility entering H2, with 96% of full-year forecast sales,
providing confidence in performance.
· Focus remains on disciplined execution, margin enhancement and sustainable
cash generation across all regions.
Stewart Gilliland, Interim Executive Chair, commented:
"IG Design delivered a solid performance in the period. This was supported by
disciplined execution and firm cost-control measures across the Group. While
the macroenvironment remains mixed, we know exactly what we need to do to
continue strengthening the business. We are confident that our focus on
operational efficiency, margin improvement and cash generation will translate
into clearer financial traction. We enter the second half as a less complex
business than last year, with confidence in our business, stable customer
relationships, and a defined pathway to further improvement in profitability
and long-term value creation."
For further information, please contact:
IG Design Group plc Tel: +44 (0)1525 887310
Stewart Gilliland, Interim Executive Chair
Rohan Cummings, Chief Financial Officer
Canaccord Genuity Limited (Nomad and Broker) Tel: +44 (0)20 7523 8000
Bobbie Hilliam
Elizabeth Halley-Stott
Alma Strategic Communications Tel: +44 (0)20 3405 0205
Rebecca Sanders-Hewett designgroup@almastrategic.com
Sam Modlin
Will Merison
Overview
The first half of FY2026 reflected the expected transitional period following
the sale of DG Americas to Hilco on 30 May 2025. Revenue for the continuing
Group decreased by 13% to $131.4 million. Consistent with full-year guidance,
this was primarily driven by softer demand in the UK, the impact of tariffs
and competitive pricing pressure in Europe. Despite this, the Group remained
profitable, with adjusted operating profit of $5.7 million and a continued
focus on sustainable growth. Cash generation and working capital management
improved year-on-year, and the Group ended the period with net cash of $1.9
million. Strong orderbook visibility at 96% entering the second half underpins
confidence in meeting full-year expectations, with the business well
positioned for margin and profit recovery over the medium term.
Divestment of DG Americas and discontinued operations
The Group completed the sale of DG Americas to Hilco on 30 May 2025. Hilco is
conducting a realisation of the DG Americas group entities through asset sales
and liquidations, with any future net proceeds to the Group contingent on
completion of this process. As at 30 September 2025 the fair value measured as
expected cash flows from future proceeds was estimated at $nil.
A loss on the sale of the DG Americas division of $140.3 million has been
recognised which, when coupled with $10.1 million of DG Americas trading
losses in the period, results in a loss from discontinued operations of $150.4
million.
Comparative information for the prior periods has been represented to reflect
the classification of DG Americas as a discontinued operation, consistent with
the current period's presentation. Cash flows attributable to discontinued
operations are disclosed separately within the cash flow. Refer to note 1 for
additional information.
Board changes
Paul Bal stepped down from his role as CEO, following the successful disposal
of DG Americas, with Stewart Gilliland assuming the role of Interim Executive
Chair. The CEO recruitment process remains underway. Stewart Gilliland remains
committed to the role of Interim Executive Chair until an appointment has been
finalised.
Mark Tentori, Senior Independent Director and Audit Committee Chair, stepped
down from the Board following the AGM in line with governance best practice,
as he has been a member of the Board for over nine years. The Board would like
to thank Mark for his commitment to the Group over his tenure. John Gittins,
who joined the Board in March 2025, has been appointed as Audit Committee
Chair and Clare Askem has taken over as Senior Independent Director.
Outlook and strategy
The Board reaffirms the expectation that full-year revenues are in line with
the previously guided range of $270-280 million. Entering the second half, the
Group benefits from strong orderbook visibility at 96% (HY2025: 88%),
providing confidence that full-year performance will remain aligned with
guidance. The Group also remains confident that full year adjusted operating
margins will be maintained within the guided range of 3-4%.
Following the divestment of DG Americas, the Group is simpler with segments
that have a strong heritage and benefit from well-established and stable
relationships with the major retailers. These businesses offer structured,
design-led product ranges supported by an extensive global footprint.
Together, these foundations provide resilience and a strong platform for
future growth.
The Group is focused on delivering sustainable growth in revenue, margins and
cash generation across the UK, continental Europe and Australia. This growth
over the coming years will be delivered by focusing on the following long-term
drivers: premiumisation, product diversification, customer and channel
expansion, and the strengthening of commercial capability. Premiumisation
through product enhancement and a more disciplined approach to pricing is
expected to reinforce the value proposition and drive sustained margin
improvement. Alongside this, diversifying and broadening the portfolio,
particularly into higher-margin and under-served categories, will reduce
concentration risk and create new, more profitable revenue streams. Expanding
customer reach and accessing new channels, will increase distribution and
improve operational leverage across the Group. In parallel, strengthening
commercial and marketing capabilities will support more consistent execution
and scalable growth in line with ambitions. In addition, a disciplined
approach to reducing costs, particularly central overheads, will further
improve Group margins.
As these initiatives progress, the Group expects to deliver sustained revenue
growth, margin improvement and better cost efficiency, enabling consistent
cash generation and the creation of long-term value for shareholders.
Capital allocation remains focused on supporting organic growth opportunities,
complemented by selective investment in strategic opportunities. Following the
sale of DG Americas, the Company currently does not have sufficient
distributable reserves to pay a dividend. However, the Group maintains a
strong balance sheet and cash position, and a project is underway to create
sufficient reserves. The Board expects to provide a further update on this
process as and when appropriate. The Board remains fully committed to
reinstating shareholder distributions as soon as it is appropriate to do so
and will continue to review this in line with the Group's performance, cash
position and strategic priorities.
Regional highlights
The continuing Group comprises three reporting segments: DG UK, DG Europe and
DG Australia, along with central costs and eliminations. The Group's product
categories fall into two key themes: Celebrate and Create. As a leading
manufacturer and distributor of celebration products, our ranges help millions
of people celebrate life's special moments each year. The Celebrate category
is made up of gift packaging (such as giftwrap, greetings cards and gift
bags), party products and goods not for resale. The Group's Create products
spark imagination, foster creativity, and encourage learning, to help
consumers of all ages express themselves and build new skills. This category
includes stationery, homeware and craft product categories.
Across the Group, there are a combination of well-structured product ranges
with a strong focus on design and innovation, supported by a geographically
diverse market footprint that spans 70 countries.
Segmental Revenue Adjusted Operating Profit Adjusted Operating Margin
HY2026 HY2025 Change HY2026 HY2025 Change HY2026 HY2025
% Group revenue
$m $m % $m $m % % %
45% DG Europe 58.8 59.0 - 7.5 8.7 (14) 12.7% 14.7%
38% DG UK 50.3 71.9 (30) 0.7 7.2 (90) 1.5% 10.0%
17% DG Australia 22.8 21.1 8 1.7 1.1 54 7.6% 5.4%
- Central & Eliminations (0.5) (0.7) (4.2) (4.1)
100% Total 131.4 151.3 (13) 5.7 12.9 (56) 4.3% 8.6%
DG Europe
DG Europe designs, manufactures and sources across the Celebrate and Create
categories. It comprises a manufacturing business in the Netherlands and
Poland, primarily serving giftwrap within the Celebrate category and a trading
business based in the Netherlands focusing on homeware products within the
Create category. The segment's main customers are large value and mass-market
retailers.
Revenue for the period was $58.8 million (HY2025: $59.0 million), broadly in
line with the prior year. Performance reflects a pricing decline as a result
of the competitive European market, and a timing shift of customer orders into
the second half versus the prior year, which offset growth from existing
customers in new product categories.
Adjusted operating profit was $7.5 million (HY2025: $8.7 million), with
margins of 12.7% (HY2025: 14.7%). The decline in margin was driven by the
pricing investment to maintain competitiveness and market share with value and
mass retailers. There was a further impact from the timing shift which offsets
freight cost tailwinds from the normalisation of rates from last year's
elevated levels.
DG Europe accounts for 45% of Group revenue, with the second half supported by
a strong orderbook covering 99% of full year forecast sales. Looking ahead,
the segment is focused on capturing growth opportunities through the expansion
of products and customers, while continuing to drive operational efficiency.
The clear visibility entering the second half, coupled with this focus on
opportunities, provides a solid platform for sustained delivery of full-year
results.
DG UK
DG UK designs and manufactures around two-thirds of its products across the
Celebrate and Create categories, with the majority of sales in Celebrate. UK
operations in Wales and Newport Pagnell are supported by a Group sourcing
office in China.
DG UK revenue for the period was $50.3 million (HY2025: $71.9 million), a 30%
decrease compared with the prior period. The reduction in sales reflects a
combination of softer demand, particularly in the Independents channel, the
impact of US tariffs, and a timing element where Christmas orders are being
shipped later than prior year. DG UK's largest customer is predominantly
US-based, and the introduction of US tariffs resulted in the customer reducing
volumes in anticipation of lower consumer demand amid macroeconomic
uncertainty. In addition, to mitigate the decline in trading, temporary
pricing support was agreed with this customer to help offset the tariff
impact. Whilst there were pockets of growth with new business wins among
national retailers, this was not sufficient to offset the overall decline.
As a result, adjusted operating profit for the period declined to $0.7 million
(HY2025: $7.2 million), with the adjusted operating margin falling to 1.5%
(HY2025: 10.0%). This performance was partially mitigated by cost savings from
the prior year closure of the Huizhou site and continued progress in cost
control and action to reduce overheads.
During the period, DG UK completed several operational initiatives aimed at
strengthening efficiency and cost base. The successful closure of the Huizhou
factory has delivered a leaner cost base and improved sourcing flexibility,
reducing the Group's fixed overhead exposure. The re-establishment of a Group
sourcing team following the sale of DG Americas allows for coordination with
Far East suppliers and supports supply-chain assurance. These actions
demonstrate the focus and progress in simplifying the UK operating model,
improving cost discipline, and mitigating supply-chain risks. With these
foundations in place, DG UK (representing 38% of Group revenue) enters the
second half well positioned, supported by strong visibility on full-year
sales. The orderbook stands at 87%, in line with the prior year. The robust
orderbook, the shift of seasonal shipments into the second half, and a
higher-margin sales mix, gives the Board confidence around full-year forecast
delivery.
DG Australia
DG Australia operates a warehouse facility and sources all of its products,
with no in-country manufacturing. The business is focused predominantly on the
Celebrate category, offering a wide range of Everyday products including
partyware, cards, and giftwrap. Key sales channels include independent
retailers and national retail chains, supported by an extensive SKU portfolio.
DG Australia makes up 17% of Group revenue. Revenue for the period was $22.8
million (HY2025: $21.1 million), an 8% increase year-on-year, reflecting
growth across both national and independent channels, particularly within the
party products range. Adjusted operating profit increased to $1.7 million
(HY2025: $1.1 million), with the margin improving to 7.6% (HY2025: 5.4%)
driven by higher sales volumes and an improved margin mix.
During the period, the Australian warehouse relocation was successfully
completed following the expiry of the previous lease. The transition was
managed effectively, with any short-term disruption recovered through the
commitment and hard work of the local team. While the impact in the period was
limited, elevated costs are expected from the new and improved facility going
forward, reflecting current market rental costs. Despite higher operational
costs of this facility, it will support the strategic focus of DG Australia to
drive sales growth which will maximise the utilisation of the fixed overhead
base. While the market remains competitive, the segment's continually
refreshed product portfolio and innovative yet disciplined approach to new
product development, position the business for steady progress over the medium
term.
Detailed Financial Review
The Group's financial results for continuing operations for the first six
months of the year are summarised below. The prior year has been represented
on a like-for-like basis for the continuing Group.
HY2026 HY2025
Reported Adjusting Items Adjusted Reported Adjusting Items Adjusted
$m $m $m $m $m $m
Revenue 131.4 - 131.4 151.3 - 151.3
Gross profit 25.3 1.0 26.3 35.4 0.8 36.2
Gross margin 19.2% 20.0% 23.4% 23.9%
Overheads (21.0) 0.4 (20.6) (26.8) 3.5 (23.3)
Operating profit 4.3 1.4 5.7 8.6 4.3 12.9
Operating margin 3.3% 4.3% 5.7% 8.6%
Finance charge (0.6) 0.2 (0.4) (0.6) - (0.6)
Profit before tax 3.7 1.6 5.3 8.0 4.3 12.3
Tax 0.3 (0.4) (0.1) (2.2) - (2.2)
Profit after tax 4.0 1.2 5.2 5.8 4.3 10.1
Operating profit 4.3 1.4 5.7 8.6 4.3 12.9
Depreciation and impairment 2.5 - 2.5 3.3 (0.8) 2.5
Depreciation of right of use assets 2.6 (0.5) 2.1 2.4 - 2.3
EBITDA 9.4 0.9 10.3 14.3 3.5 17.9
Diluted earnings per share 4.1c 0.8c 4.9c 5.7c 4.5c 10.2c
Revenue from continuing operations decreased by 13% to $131.4 million (HY2025:
$151.3 million). The reduction reflects the market headwinds previously
communicated, including softer demand in the UK, the impact of tariffs on UK
sales into the US and competitive pricing pressure across Europe. In addition,
approximately $7 million of expected revenue shifted into the second half of
the year due to timing of shipments, primarily within Europe.
When assessed on a constant currency basis, Group revenue decreased by
approximately 16%, with a modest positive impact from foreign exchange
translation on the reported USD result.
Adjusted gross profit was $26.3 million (HY2025: $36.2 million), with the
adjusted gross margin declining to 20.0% (HY2025: 23.9%). The movement
primarily reflects competitive pricing, the impact of tariffs and the
resultant impact on operating leverage from lower production volumes.
Adjusted overheads reduced to $20.6 million (HY2025: $23.3 million),
reflecting the benefits of the prior year restructuring actions and continued
cost discipline across the Group.
Consequently, adjusted operating profit for the period was $5.7 million,
representing an adjusted operating margin of 4.3% (HY2025: $12.9 million,
8.6%), driven by the lower gross profit, partially offset by overhead savings.
The Group recorded an adjusted net finance charge of $0.4 million (HY2025:
$0.6 million). The net finance charge is made up of financing income of $0.5
million (HY2025: $0.6 million) and $0.9 million of interest costs including
lease liability interest (HY2025: $1.2 million). The financing cost improved
reflecting reduced borrowing costs, despite lower cash levels throughout the
reporting period.
Adjusted profit before tax was $5.3 million (HY2025: $12.3 million),
consistent with the reduction in operating profit.
Adjusting items before tax of $1.6 million (HY2025: $4.3 million) are
comprised primarily of costs relating to the relocation of DG Australia's
warehouse operations with transition-related expenses and temporary dual-site
running costs.
Adjusted profit after tax was $5.2 million (HY2025: $10.1 million), with the
tax credit in HY2026 primarily reflecting the release of a tax provision.
Reported profit after tax for the period was $4.0 million (HY2025: $5.8
million).
Taxation
The taxation credit for the half year on profit before tax is $0.3 million
(HY2025: $2.2 million charge) with the effective tax rate at (8.0)% (HY2025:
27.0%). The tax charge on adjusted profit before tax is $0.1 million (HY2025:
$2.2 million) with the effective tax rate at 2.4% (HY2025: 17.6%). The
effective tax rate in the UK is currently 0% as deferred tax is not
recognised; the closure of Huizhou during the year resulted in a release of
previously held tax provisions and is the largest contributor to the low
adjusted effective rate in the period. The key driver behind the difference
between adjusted and reported tax rates is the tax relief received on
adjusting items.
EPS
Diluted adjusted earnings per share for continuing operations at 4.9 cents
(HY2025: 10.2 cents) is reduced year-on-year driven by the decline in profit
after tax for the period. Diluted reported earnings per share at 4.1 cents
(HY2025: 5.7 cents) is lower than adjusted diluted earnings per share
reflecting the adjusting items charge in the period. Further details are set
out in note 9.
Cash flow and net cash
The Group ended the period with a net cash balance of $1.9 million (HY2025:
$7.4 million), representing a year-on-year decrease of $5.5 million, due to a
lower cash position at the beginning of the year. Total cash outflow in the
period for the continuing Group improved by 16% year-on-year to $47.9 million
(HY2025: $57.0 million), despite the revenue shift into the second half, which
reflects progress and discipline in cash and working capital management.
A summary of the Group cash flow is shown below.
HY2026 HY2025
$m $m
Adjusted EBITDA 10.3 17.9
Add back share-based payment charge 0.7 0.6
Movements in working capital (51.2) (65.1)
Adjusted cash used by operations (40.2) (46.6)
Adjusting items (1.5) (3.3)
Cash used by operations (41.7) (49.9)
Capital expenditure (net of disposals of property, plant and equipment) (2.4) (1.8)
Tax paid (2.4) (3.1)
Interest received/(paid) 0.4 (0.8)
Lease liabilities principal repayments (2.7) (2.0)
Dividends paid (including those paid to non-controlling interests) - (0.7)
FX and other 0.9 1.3
Movement in net cash from continuing operations (47.9) (57.0)
DG Americas cash outflow (33.3) (30.8)
DG Americas disposal costs (1.7) -
Movement in net cash (82.9) (87.8)
Opening net cash 84.8 95.2
Closing net cash 1.9 7.4
Working capital
It is usual for working capital levels of the Group to increase steadily in
the first half of the year as the manufacturing of seasonal product builds
ahead of distribution. The second half of the year sees the inflow of cash
following the shipment and collection of Christmas-related receivables. In the
period there was a working capital absorption of $51.2 million (HY2025: $65.1
million). This improvement was primarily in Europe, despite the delay in
shipments, due to a normalised outflow versus prior year and focus on working
capital management.
Capital expenditure
Capital expenditure of $2.4 million (HY2025: $1.8 million) increased in the
period mainly due to investment in the new warehouse facility for the DG
Australia operations.
DG Americas cash outflow
Total cash outflow for the period relating to DG Americas includes $22.7
million of DG Americas cash outflow in the period to 30 May 2025, $10.6
million of cash balance on disposal, and $1.7 million of disposal costs. See
note 5 for further details.
Banking facilities
On 11 July 2025, the Group entered into a new Receivables Finance Facility
with HSBC and NatWest. The facility has an initial minimum period of 36 months
and provides maximum £40 million funding based on a borrowing base linked to
eligible receivables across a participating Group companies. Availability
under the facility is determined by reference to the value of receivables,
subject to eligibility criteria and concentration limits. The facility does
not include financial ratio covenants but is subject to certain operational
covenants. Further details are set out in note 8.
Foreign exchange exposure management
The Group's foreign exchange (FX) exposure is split into two areas:
Translational FX exposure - The Group's reporting currency is US dollars and
the translation exposure is the result of the requirement for the Group to
report its results in one currency. This necessitates the translation of our
regional business units' local currency financial results into the Group's
adopted reported currency. To aid comparability between periods, constant
currency figures are provided by retranslating the prior year's results using
current year exchange rates. In HY2026, currency movements had a favourable
impact. On a constant currency basis, the revenue decline would have been $5.8
million higher, and the decline in adjusted profit before tax would have been
$0.5 million greater, had HY2025 results been translated at HY2026 rates.
Transactional FX exposure - The FX exposure is managed carefully by the Group
by adopting an active hedging policy to ensure that the foreign exchange
movements remain mitigated as far as possible. In addition, a reasonable
proportion of hedging is achieved through natural hedges whereby our purchases
and sales in US dollars are offset within the Group. The balance of our
hedging is achieved through the forward exchange contracts and similar
derivatives.
The Group intends to adopt GBP as its presentation currency for consolidated
financial statements, replacing USD, effective from the FY2026 full-year
results. This follows a strategic review of the Group's reporting approach in
light of its evolving structure and the disposal of DG Americas, which has
materially reduced USD-denominated revenues and profits.
Financial position and going concern basis
The Group's net assets decreased by $131.2 million since the end of the
financial year to $138.9 million at 30 September 2025, driven by the sale of
DG Americas. The Directors have continued to pay close attention to their
assessment of going concern in preparation of these financial statements. The
Group is appropriately capitalised at the year end with a net cash position of
$1.9 million and availability of committed borrowing facility.
The Directors of the Group have performed an assessment of the overall
position and future forecasts for the purposes of going concern. The going
concern assessment has been performed using the Group's FY2026 and FY2027
forecasts. A reduction in cash flow volatility following the disposal of the
DG Americas business is expected, with the remaining Group forecasted to
deliver more stable profitability and cash generation, reflecting continued
progress towards a more consistent and resilient financial performance. The
forecasts, reviewed by the Board, also incorporate the inherent seasonality of
the Group's operations. The forecasts were sensitised to reflect severe but
plausible adverse downturns in the current assumptions including the potential
impact of the loss of a significant portion of the business with one of our
major customers, a recurrence of previous freight rate inflation and a
cyber-attack, beyond those risks already factored into the budgets and plans.
The base forecasts and additional sensitivity analysis have been tested
against the availability of the borrowing facility. The analysis demonstrated
that the Group has sufficient headroom to meet its obligations as they fall
due for the forecast period of more than twelve months beyond the date of
signing these accounts. As such, the Directors do not see any practical
regulatory or legal restrictions which would limit their ability to fund the
different regions of the business as required as the Group has sufficient
resources.
Accordingly, the Directors have continued to adopt the going concern basis of
accounting in preparing the interim financial statements.
Risk
The Group operates a decentralised model where risk management is embedded
within strategic and operational decision making. The principal risks and
uncertainties remain consistent with those disclosed on pages 52 to 57 of our
annual report and financial statements 2025. The key risks continue to be
macroeconomic uncertainty and strategy. The broader macroeconomic environment
is a key risk which impacts the entire business spanning suppliers, customers,
consumers and the workforce. Following the sale of DG Americas the Group
strategy remains vital to forge the Group's pathway to growth. The Board
continues to monitor these factors closely and remains confident that the
Group's risk management and control framework remains appropriate and
effective, and that the business is well placed to manage the external
challenges facing its markets. No new material risks have been identified
since the year-end.
Statement of Directors' responsibilities
The Directors confirm to the best of their knowledge that these condensed
interim financial statements have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and that
the interim management report includes a fair review of the information,
namely:
· an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
· material related-party transactions in the first six months and any material
changes in the related-party transactions described in the last annual report.
By order of the Board
Rohan Cummings
Director
2 December 2025
CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Continuing Operations Note $000 $000 $000
Revenue 2 131,397 151,303 289,721
Cost of sales (106,154) (115,881) (227,316)
Gross profit 25,243 35,422 62,405
Selling expenses (8,017) (7,112) (14,566)
Administration expenses - costs (13,407) (19,807) (34,588)
Other operating income 477 106 468
Operating profit 3 4,296 8,609 13,719
Finance income 515 605 1,519
Finance cost (1,157) (1,182) (3,173)
Profit before tax 3,654 8,032 12,065
Income tax credit/(charge) 6 292 (2,166) (5,904)
Profit after taxation from continuing operations 3,946 5,866 6,161
Discontinued operations
Loss from discontinued operations 5 (150,352) (1,498) (105,436)
(Loss)/profit for the period (146,406) 4,368 (99,275)
Attributable to:
Owners of the Parent Company (146,422) 3,974 (99,685)
Non-controlling interests 16 394 410
Earnings per ordinary share
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Cents Cents Cents
Note
Basic earnings per share - continuing operations 9 4.1 5.7 6.0
Basic loss per share - discontinued operations 5 (157.7) (1.5) (110.6)
Basic (loss)/earnings per share - Total 9 (153.6) 4.2 (104.6)
Diluted earnings per share - continuing operations 9 4.1 5.7 6.0
Diluted loss per share - discontinued operations 5 (157.0) (1.6) (109.4)
Diluted (loss)/earnings per share - Total 9 (152.9) 4.1 (103.4)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
(Loss)/profit for the period (146,406) 4,368 (99,275)
Other comprehensive income/(expense):
Items that will not be reclassified to profit or loss
Re-measurement of defined benefit pension and health benefit schemes - - (40)
Items that may be reclassified subsequently to profit or loss
Exchange difference on translation of foreign operations (2,173) (10,174) (6,357)
Exchange differences on translation of discontinued operations 6,441 - -
Transfer to profit and loss on maturing cash flow hedges (360) 137 (398)
Net unrealised gain/(loss) on cash flow hedges 542 (95) (177)
4,450 (10,132) (6,932)
Other comprehensive income/(expense) for the period, net of tax 4,450 (10,132) (6,972)
Total comprehensive expense for the period, net of tax (141,956) (5,764) (106,247)
Attributable to:
Owners of the Parent Company (142,369) (6,628) (106,330)
Non-controlling interests 413 864 83
(141,956) (5,764) (106,247)
Total comprehensive income/(expense) for the period attributable to owners of
the Parent Company arises from:
Continuing operations 8,396 (5,130) (854)
Discontinued operations (150,765) (1,498) (105,476)
(142,369) (6,628) (106,330)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
SIX MONTHS ENDED 30 SEPTEMBER 2025
Attributable to the owners of the Parent Company
Share
premium
and capital Non-
Share redemption Merger Hedging Translation Retained Shareholders' controlling
capital reserve reserve reserve reserve earnings equity interests Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
At 1 April 2025 6,358 224,704 41,907 (533) (11,770) 2,220 262,886 7,284 270,170
Loss for the period - - - - - (146,422) (146,422) 16 (146,406)
Recycling of translation reserve on disposal of subsidiary - - - - 6,441 - 6,441 - 6,441
Other comprehensive income/(expense) - - - 182 (2,570) - (2,388) 397 (1,991)
Total comprehensive (expense)/income for the period - - - 182 3,871 (146,422) (142,369) 413 (141,956)
Transactions with owners in their capacity as owners
Reclassification on disposal of division - - (23,557) - - 23,557 - - -
Equity-settled share-based payments - - - - - 379 379 - 379
Cash settlement of share-based payments - - - - - (329) (329) - (329)
Options exercised - - - - - - - - -
Exchange differences on opening balances 249 8,794 1,640 - - - 10,683 - 10,683
At 30 September 2025 6,607 233,498 19,990 (351) (7,899) (120,595) 131,250 7,697 138,947
SIX MONTHS ENDED 30 SEPTEMBER 2024
Attributable to the owners of the Parent Company
Share
premium
and capital Non-
Share redemption Merger Hedging Translation Retained Shareholders' controlling
capital reserve reserve reserve reserve earnings equity interests Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
At 1 April 2024 6,201 219,210 40,883 42 (5,740) 101,022 361,618 7,869 369,487
Profit for the period - - - - - 3,974 3,974 394 4,368
Other comprehensive (expense)/income - - - 42 (10,644) - (10,602) 470 (10,132)
Total comprehensive income/(expense) for the period - - - 42 (10,644) 3,974 (6,628) 864 (5,764)
Transactions with owners in their capacity as owners
Equity-settled share-based payments - - - - - 640 640 - 640
Tax on equity-settled share-based payments - - - - - 13 13 - 13
Options exercised 2 - - - - (2) - - -
Equity dividends paid - - - - - - - (668) (668)
Exchange differences on opening balances 377 13,352 2,490 - - - 16,219 - 16,219
At 30 September 2024 6,580 232,562 43,373 84 (16,384) 105,647 371,862 8,065 379,927
YEAR ENDED 31 MARCH 2025
Attributable to the owners of the Parent Company
Share
premium
and capital Non-
Share redemption Merger Hedging Translation Retained Shareholders' controlling
capital reserve reserve reserve reserve earnings equity interests Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
At 1 April 2024 6,201 219,210 40,883 42 (5,740) 101,022 361,618 7,869 369,487
Profit for the year - - - - - (99,685) (99,685) 410 (99,275)
Other comprehensive expense - - - (575) (6,030) (40) (6,645) (327) (6,972)
Total comprehensive income/(expense) for the year - - - (575) (6,030) (99,725) (106,330) 83 (106,247)
Transactions with owners in their capacity as owners
Equity-settled share-based payments - - - - - 925 925 - 925
Options exercised 2 - - - - (2) - - -
Equity dividends paid - - - - - - - (668) (668)
Exchange differences on opening balances 155 5,494 1,024 - - - 6,673 - 6,673
At 31 March 2025 6,358 224,704 41,907 (533) (11,770) 2,220 262,886 7,284 270,170
In line with the Group's accounting policy, share capital, share premium,
capital redemption reserve, merger reserve and hedging reserve are translated
into US dollars at the rates of exchange at each balance sheet date and the
resulting cumulative exchange differences are included in translation reserve.
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2025
Unaudited Unaudited
as at as at As at
30 Sep 2025 30 Sep 2024 31 Mar 2025
Note $000 $000 $000
Non-current assets
Property, plant and equipment 26,380 60,855 53,558
Intangible assets 15,044 74,134 22,892
Right-of-use assets 36,697 54,212 64,969
Long-term assets - 3,906 2,899
Deferred tax assets 1,273 39,035 1,306
Total non-current assets 79,394 232,142 145,624
Current assets
Asset held for sale 10 186 5,573 1,803
Inventory 86,292 217,921 172,651
Trade and other receivables 76,863 217,896 84,827
Income tax receivable 808 2,491 2,218
Derivative financial assets 10 332 403 1
Cash and cash equivalents 7 5,690 48,827 136,493
Total current assets 170,171 493,111 397,993
Total assets 249,565 725,253 543,617
Non-current liabilities
Loans and borrowings 8 (459) (495) (120)
Lease liabilities 37,233 47,601 59,627
Deferred income 224 1,738 2,109
Provisions 2,124 2,902 2,540
Other financial liabilities 274 10,961 15,353
Deferred tax liabilities 81 153 73
Total non-current liabilities 39,477 62,860 79,582
Current liabilities
Bank overdraft 7 2,688 40,677 52,539
Loans and borrowings 8 1,594 1,257 (718)
Lease liabilities 3,815 14,373 13,513
Deferred income 283 513 262
Provisions 295 6,549 1,741
Income tax payable 673 10,464 8,670
Trade and other payables 47,035 173,765 84,822
Other financial liabilities 14,758 34,868 33,036
Total current liabilities 71,141 282,466 193,865
Total liabilities 2 110,618 345,326 273,447
Net Assets 138,947 379,927 270,170
Equity
Share capital 6,607 6,580 6,358
Share premium 231,696 230,767 222,970
Capital redemption reserve 1,802 1,795 1,734
Merger reserve 19,990 43,373 41,907
Hedging reserve (351) 84 (533)
Translation reserve (7,899) (16,384) (11,770)
Retained earnings (120,595) 105,647 2,220
Equity attributable to owners of the Parent Company 131,250 371,862 262,886
Non-controlling interests 7,697 8,065 7,284
Total equity 138,947 379,927 270,170
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
SIX MONTHS ENDED 30 SEPTEMBER 2025
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Note $000 $000 $000
Cash flows from operating activities
Profit/(loss) for the period
Continuing operations 3,946 5,866 6,161
Discontinued operations (150,352) (1,498) (105,436)
Loss/(profit) for the period including discontinued operations (146,406) 4,368 (99,275)
Adjustments for:
Loss on disposal of subsidiary's net assets including reclassification of 138,158 - -
translation reserve
Depreciation of property, plant and equipment 3,074 6,473 10,679
Depreciation of right-of-use assets 4,181 7,689 15,505
Amortisation of intangible assets 288 1,231 2,430
Impairment of property, plant and equipment, right-of-use assets and - - 7,069
intangible assets
Goodwill impairment - - 48,679
Net finance cost 1,308 1,353 1,944
Income tax (credit)/charge 6 (266) 1,328 43,744
(Profit)/loss on disposal of property, plant and equipment (763) 246 (4,542)
Loss/(profit) on disposal of leases 3 (70) (70)
Equity-settled share-based payments 96 725 877
Operating (loss)/profit after adjustments for non-cash items (327) 23,343 27,040
Change in trade and other receivables (31,483) (125,359) 3,365
Change in inventory (26,855) (48,337) (6,338)
Change in trade and other payables, provisions and deferred income (8,392) 78,512 (7,864)
Cash (used in)/generated from operations (67,057) (71,841) 16,203
Tax paid (2,439) (3,167) (9,565)
Interest and similar charges received/(paid) 950 (979) (2,813)
Net cash (outflow)/inflow from operating activities (68,546) (75,987) 3,825
Cash flow from investing activities
Proceeds from sale of property, plant and equipment 2,414 81 8,837
Proceeds from sale of division net of cash 5 (10,624) - -
Acquisition of intangible assets (476) (6) (627)
Acquisition of property, plant and equipment (1,975) (3,209) (6,121)
Net cash (outflow)/inflow from investing activities (10,661) (3,134) 2,089
Cash flows from financing activities
Net movement in credit facilities 1,856 2,000 -
Lease liabilities principal repayments (4,602) (8,376) (16,504)
Loan arrangement fees (824) - -
Dividends paid to non-controlling interest - (668) (668)
Net cash outflow from financing activities (3,570) (7,044) (17,172)
Net decrease in cash and cash equivalents (82,777) (86,165) (11,258)
Cash and cash equivalents and bank overdrafts at beginning of the period 83,954 93,710 93,710
Effect of exchange rate fluctuations on cash held 1,825 605 1,502
Cash and cash equivalents and bank overdrafts at end of the period 7 3,002 8,150 83,954
NOTES TO THE INTERIM FINANCIAL STATEMENTS
SIX MONTHS ENDED 30 SEPTEMBER 2025
1. Accounting policies
Basis of preparation
The results for the six months ended 30 September 2024 and the twelve months
ended 31 March 2025 have been represented to reflect that the results of DG
Americas are now reported as discontinued operations and are therefore
reported separately or excluded where required. See note 5 'Discontinued
operations' for more information.
The condensed financial information contained in this interim report does not
constitute statutory accounts as defined in Section 435 of the Companies
Act 2006 and is unaudited. Statutory accounts for the year ended 31 March
2025 were approved by the Board of Directors on 28 July 2025 and delivered to
the Registrar of Companies. The report of the auditors on those accounts was
unqualified, did not contain an emphasis of matter paragraph and did not
contain any statement under section 498 of the Companies Act 2006. These
interim financial statements are unaudited.
This condensed consolidated interim financial report for the half-year
reporting period ended 30 September 2025 has been prepared in accordance with
the UK-adopted International Accounting Standard 34, 'Interim Financial
Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority. The interim report does not
include all of the notes of the type normally included in an annual financial
report. Accordingly, this report is to be read in conjunction with the annual
report for the year ended 31 March 2025, which has been prepared in accordance
with UK-adopted International Accounting Standards and the requirements of the
Companies Act 2006, and any public announcements made by IG Design Group plc
during the interim reporting period.
The preparation of financial statements that conform with adopted UK IFRS
requires the use of estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of income and expense during the reporting period. Although
these estimates are based on management's best knowledge of the amount, event
or actions, actual results may ultimately differ from those estimates. The
estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised and future periods if relevant.
The Group has applied the temporary exception under the Amendments to IAS 12
'International Tax Reform - Pillar Two Model Rules' and has not recognised or
disclosed deferred tax assets and liabilities related to Pillar Two income
taxes. Pillar Two legislation has been enacted in the UK and became effective
on 1 January 2024. The Group continues to assess the impact of these rules,
but they are not expected to have a material effect on the Group's financial
position or results.
For the purposes of these financial statements, 'Design Group' or 'the Group'
means IG Design Group plc ('the Company') and its subsidiaries. IG Design plc
is a company limited by shares, incorporated and domiciled in the UK. Its
registered office is Howard House, Howard Way, Interchange Park, Newport
Pagnell, MK16 9PX. Its shares are listed on the Alternative Investment
Market (AIM).
Seasonality of the business
The business of the Group is seasonal and although revenues generally accrue
relatively evenly in both halves of the year, working capital requirements,
including inventory levels, increase steadily in the first half from July and
peak in October as manufacturing of Christmas products builds ahead of
distribution. The second half of the year sees the borrowing of the Group
decline and move to typically a cash positive position as the Group collects
the majority of its receivables through January to March.
Presentation currency
The presentation and functional currency of the Group is US dollars. The
functional currency of the Parent Company remains as pound sterling as it is
located in the United Kingdom and substantially all of its cash flows, assets
and liabilities are denominated in pound sterling, as well as its share
capital.
Going concern
Information regarding the financial position of the Group, its cash flows,
liquidity position and borrowing facilities are described in the detailed
financial review above. Cash balances and borrowings and detailed information
about the borrowing facilities are detailed in notes 7 and 8.
The Group financial statements have been prepared on a going concern basis as
the Directors have a reasonable expectation that the Group has adequate
resources to continue trading for a period of at least twelve months from the
date of this report. This expectation is based on the Directors' assessment of
the Group's current financial position and future cash flow forecasts over the
going concern period. The assessment also considers the structure of the
Group's current borrowing facilities. In forming this view, the Directors have
also considered the Group's liquidity headroom, its ability to adapt to
changes in market conditions, and its capacity to manage principal business
risks over the forecast period.
On 11 July 2025, the Group entered into a new Receivables Finance facility
with HSBC and NatWest, replacing its previous Asset Backed Lending (ABL)
arrangement. The new facility is a minimum three-year agreement and provides
funding capacity based on the level of eligible receivables across
participating Group companies. The facility is subject to certain operational
covenants but not financial covenants.
In connection with the implementation of this new facility, the Group's £15.0
million overdraft facility was cancelled.
The Directors have reviewed detailed forecasts through to 31 March 2027. These
indicate a reduction in cash flow volatility following the disposal of the DG
Americas division, with the remaining Group expected to deliver more stable
profitability and cash generation, reflecting continued progress towards more
consistent and resilient financial performance. The forecasts also incorporate
the inherent seasonality of the Group's operations.
These forecasts have been sensitised to reflect severe but plausible adverse
scenarios. Specifically, the scenarios considered the following risks:
· a potential loss of significant trading with a major customer,
modelled as a reduction in sales, with associated impacts on cash flow,
facility availability, and working capital;
· a sustained period of inflation in freight rates, resulting in
additional costs and related cash outflows;
· the occurrence of a cyber security incident during peak trading
periods, modelled as a temporary reduction in receivables, affecting both
liquidity and availability under the Group's receivables-based facility; and
Please refer to 2025 Annual Report for further details.
Individually and in aggregate, these severe but plausible scenarios do not
change the conclusion that the Group has sufficient liquidity and resources to
continue as a going concern. Based on this assessment, the Directors have
formed a judgement that there is a reasonable expectation the Group will have
adequate resources to continue in operational existence for the foreseeable
future.
Discontinued operations
A discontinued operation is a component of the Group's business that
represents a separate major line of business or geographical area of
operations that has been disposed of or is held for sale, or is a subsidiary
acquired exclusively with a view to resale. Discontinued operations are
presented separately from continuing operations in the consolidated income
statement as a single amount comprising the post-tax results of the
discontinued operation and the post-tax gain or loss recognised on its
disposal.
The assets and liabilities of a disposal group when classified as held for
sale are measured at the lower of their carrying amount and fair value less
costs to sell and are presented separately in the consolidated balance sheet.
Comparative information for the prior period has been represented, where
relevant, to reflect the classification of the disposed business as a
discontinued operation, consistent with the current period presentation.
Significant accounting policies
The accounting policies adopted in the preparation of the interim report are
consistent with those of the previous financial year and corresponding interim
reporting period and the adoption of new and amended standards. A number of
new or amended standards became applicable for the current reporting period.
The Group did not have to change its accounting policies or make retrospective
adjustments as a result of adopting these standards.
2. Segmental information
The Group has one material business activity, being the design, manufacture
and distribution of various celebration and creative products.
Following the disposal of DG Americas, the Group has introduced new reporting
segments, and previously disclosed segments have been re-presented to reflect
the current structure.
The Group operates under three reporting segments, which are reviewed and
evaluated by the Chief Operating Decision Makers. These segments are:
· DG UK: Includes operations in Wales, Newport Pagnell, and the
Group's sourcing offices in Asia.
· DG Europe: Comprises operations in the Netherlands and Poland.
· DG Australia: Represents the Group's joint venture in Australia.
In addition, Central and Eliminations cover Group head office activities and
consolidation adjustments.
Inter‑segment pricing is determined on an arm's length basis. Segment
results include items directly attributable to a segment as well as those that
can be allocated on a reasonable basis.
Financial performance of each segment is measured on adjusted operating profit
before management recharges. Interest and tax are managed on a Group basis and
not split between reportable segments. However, the related financial
liabilities and cash have been allocated out into the reportable segments as
this is how they are managed by the Group.
Segment assets are all non-current and current assets. Inter‑segment
receivables and payables are not included within segmental assets and
liabilities as they eliminate on consolidation.
DG DG DG Central &
Europe UK Australia eliminations Group
Six months ended 30 September 2025 $000 $000 $000 $000 $000
Revenue - external 58,839 49,802 22,756 - 131,397
- inter-segment - 511 - (511) -
Total segment revenue 58,839 50,313 22,756 (511) 131,397
Segment profit/(loss) before adjusting items 7,446 736 1,739 (4,253) 5,668
Adjusting items (note 3) - (247) (1,125) - (1,372)
Operating profit/(loss) 7,446 489 614 (4,253) 4,296
Finance income 515
Finance costs (1,157)
Income tax 292
Loss from discontinued operations (150,352)
Loss for the six months ended 30 September 2025 (146,406)
Balances at 30 September 2025
Segment assets 104,689 97,098 45,592 2,186 249,565
Segment liabilities (28,093) (52,958) (28,446) (1,121) (110,618)
Capital expenditure additions
- property, plant and equipment 534 614 619 1 1,768
- intangible assets - 476 - - 476
- right-of-use assets 731 162 94 - 987
Depreciation - property, plant and equipment 953 1,318 194 6 2,471
Amortisation - intangible assets 8 4 16 - 28
Depreciation - right-of-use assets 638 759 1,213 - 2,610
Loss on disposal of property, plant and equipment - (1) (54) - (55)
DG DG DG Central &
Europe UK Australia eliminations Group
Six months ended 30 September 2024 $000 $000 $000 $000 $000
Revenue - external 59,011 71,199 21,093 - 151,303
- inter-segment - 749 - (749) -
Total segment revenue 59,011 71,948 21,093 (749) 151,303
Segment profit/(loss) before adjusting items 8,664 7,167 1,129 (4,010) 12,950
Adjusting items (note 3) - (4,341) - - (4,341)
Operating profit/(loss) 8,664 2,826 1,129 (4,010) 8,609
Finance income 605
Finance costs (1,182)
Income tax (2,166)
Loss from discontinued operations (1,498)
Profit for the six months ended 30 September 2024 4,368
Balances at 30 September 2024
Segment assets 106,263 112,542 28,617 27,655 275,077
Segment liabilities (60,068) (68,118) (10,609) (2,687) (141,482)
Capital expenditure additions
- property, plant and equipment 229 1,604 21 5 1,859
- intangible assets - 6 - - 6
- right-of-use assets 34 165 92 - 291
Depreciation - property, plant and equipment 863 1,474 133 13 2,483
Impairment - property, plant and equipment - 784 - - 784
Amortisation - intangible assets 7 16 17 - 40
Depreciation - right-of-use assets 598 1,221 593 4 2,416
Profit/(loss) on disposal of property, plant and equipment 11 (6) 7 - 12
DG DG DG Central &
Europe UK Australia eliminations Group
Year ended 31 March 2025 $000 $000 $000 $000 $000
Revenue - external 129,683 119,435 40,603 - 289,721
- inter-segment 75 824 - (899) -
Total segment revenue 129,758 120,259 40,603 (899) 289,721
Segment profit/(loss) before adjusting items 18,583 7,439 2,158 (7,153) 21,027
Adjusting items (note 3) - (6,621) (687) - (7,308)
Operating profit/(loss) 18,583 818 1,471 (7,153) 13,719
Finance income 1,519
Finance costs (3,173)
Income tax (5,904)
Loss from discontinued operations (105,436)
Loss for the year ended 31 March 2025 (99,275)
Balances at 31 March 2025
Segment assets 79,902 87,071 38,430 70,121 275,524
Segment liabilities (27,705) (51,594) (22,579) (45,006) (146,884)
Capital expenditure additions
- property, plant and equipment 721 2,296 812 15 3,844
- intangible assets 46 581 - - 627
- right-of-use assets 220 749 16,687 - 17,656
Depreciation - property, plant and equipment 1,726 2,770 273 26 4,795
Impairment - property, plant and equipment - 765 - - 765
Amortisation - intangible assets 21 25 34 - 80
Depreciation - right-of-use assets 1,197 2,222 1,561 8 4,988
Profit/(loss) on disposal of property, plant and equipment 11 (66) 23 - (32)
3. Operating profit and adjusting items
This analysis of operating profit and adjusting items relates to continuing
operations:
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
Operating profit is analysed as:
Adjusted operating profit 5,668 12,950 21,027
Adjusting items (1,372) (4,341) (7,308)
Operating profit 4,296 8,609 13,719
Adjusting items for continuing operations relate to business restructuring
costs:
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
Cost of sales 1,031 768 1,416
Administration expenses 341 3,541 5,756
Profit and loss on disposal - 32 136
Adjustments to operating profit 1,372 4,341 7,308
Other finance expenses 263 - 240
Adjustments to profit before tax 1,635 4,341 7,548
Adjusting tax credit (419) (16) (217)
1,216 4,325 7,331
Adjusting items are separately presented by virtue of their nature, size
and/or incidence (per each operating segment). These items are material items
of an unusual or non-recurring nature which represent gains or losses and are
presented to allow for the review of the performance of the business in a
consistent manner and in line with how the business is managed and measured on
a day-to-day basis and allow the reader to obtain a clearer understanding of
the underlying results of the ongoing Group's operations. They are typically
gains or costs associated with events that are not considered to form part of
the core operations or are considered to be a 'non-recurring' event (although
they may span several accounting periods).
DG Australia finalised the relocation of its warehousing operations from a
long-standing leased facility to a newly secured site. Relocation costs in the
reporting period totalled $1.3 million (FY2025: $0.9 million) and included
$1.0 million of lease-related and other expenses for the new warehouse, $0.3
million of which were classified as other finance expenses (FY2025: $0.2
million). During the transition, the business incurred double-running costs,
as it remained contractually committed to the previous site while establishing
full operational capability at the new location. These costs have been treated
as adjusting items due to their non-recurring nature and direct link to the
relocation.
Administrative expenses of $0.3 million relate to the final costs associated
with the closure of the China site and the reorganisation of the UK business'
sourcing office in the Far East (HY2025: $4.3 million, FY2025: $6.6 million).
The cash flow effect of adjusting items from continuing operations
There was a $1.5 million net outflow in the current period's cash flow
(HY2025: $3.3 million, FY2025: $4.8 million) relating to adjusting items from
continuing operations.
4. Share-based payments charges
The total expense recognised for the period arising from equity-settled
share-based payments is as follows:
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
Charge in relation to the 2022-2025 LTIP scheme 10 249 207
Charge in relation to the 2023-2026 LTIP scheme 146 287 315
Charge in relation to the 2024-2027 LTIP scheme 223 104 403
Equity-settled share-based payments charge 379 640 925
Social security charge 40 85 (48)
Total equity-settled share-based payments charge 419 725 877
Continuing operations 653 586 662
Discontinued operations (234) 139 215
In September 2025, the 2025-2028 LTIP scheme was granted. The 2025-2028 LTIP
scheme is subject to certain performance criteria being achieved during a
three-year period: relative Total Shareholder Return versus FTSE SmallCap
(excluding Investment Trusts) constituents; and EPS growth, with an 'underpin'
condition to reduce vesting levels if unwarranted 'windfall gains' from share
price movements arise. There is a two-year holding period for one individual.
5. Discontinued operations
On 30 May 2025, the Group completed the sale of its wholly owned subsidiary,
Design Group Americas, Inc., the holding company of the Group's US division
(DG Americas), to HUK 168 Limited, a special purpose vehicle owned by the
Hilco Capital group (the 'buyer').
Under the terms of the share purchase agreement, the Company received a
nominal upfront payment of $1 and may be entitled to 75% of any future net
proceeds realised by the buyer from a sale or realisation of DG Americas or
its assets, after agreed deductions and to the extent such proceeds are not
retained for DG Americas working capital purposes. As at 30 September 2025,
and as the buyer progresses with the sale and realisation of the DG Americas
assets, the fair value measured as the expected cash flows from the future
proceeds was estimated at $nil.
A loss on sale of DG Americas of $140.3 million was recognised in the
consolidated income statement in the current year.
Unaudited
six months
ended
30 Sep 2025
$000
Consideration received -
Fair value of contingent consideration -
Total consideration -
Carrying amount of net assets sold (131,210)
Cost to sell (2,092)
Loss on sale before tax and reclassification of translation reserve (133,302)
Reclassification of translation reserve (6,948)
Income tax on sale -
Loss on sale after income tax (140,250)
The carrying amounts of assets and liabilities at the date of disposal on 30
May 2025 were as follows:
Unaudited
six months
ended
30 Sep 2025
$000
Non-current assets 63,719
Inventory 116,900
Trade and other receivables 42,634
Cash and cash equivalents 10,624
Income tax receivable 1,868
Total assets 235,745
Trade and other payables (67,688)
Lease liabilities (31,211)
Income tax payable (5,636)
Total liabilities (104,535)
Net assets of the disposal group 131,210
In accordance with IFRS 5.32, management has determined that the disposal of
DG Americas represents the disposal of a separate major geographical area. As
such, the results of DG Americas have been classified as a discontinued
operation. The financial performance and cash flow information for the current
reporting period includes the results of DG Americas for the two-month period
ended 30 May 2025. Comparative reporting periods present the full results for
those respective periods.
Unaudited six months ended Unaudited six months ended Twelve months
ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
Revenue 28,845 241,765 439,543
Expenses (38,921) (244,101) (507,139)
Loss before income tax (10,076) (2,336) (67,596)
Income tax (charge)/credit (26) 838 (37,840)
Loss after tax (10,102) (1,498) (105,436)
Loss on disposal (140,250) - -
Loss from discontinued operations (150,352) (1,498) (105,436)
Net cash (outflow)/inflow from operating activities (22,927) (23,740) 1,036
Net cash inflow/(outflow) from investing activities 2,274 (1,349) 5,480
Net cash outflow from financing activities (2,036) (5,736) (12,421)
Net increase in cash and cash equivalents generated by discontinued operations (22,689) (30,825) (5,905)
Cents Cents Cents
Basic loss per share from discontinued operations (157.7) (1.5) (110.6)
Diluted loss per share from discontinued operations (157.0) (1.6) (109.4)
Refer to note 9. (Loss)/earnings per share for the weighted average number of
shares used in calculation of losses per share from discontinued operations.
During the period, DG Americas sold a property in Berwick, Pennsylvania that
was previously classified as held for sale. The net proceeds were $2.4
million.
6. Taxation
Recognised in the income statement
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
Current tax charge (credit)/charge
Current income tax (378) 1,185 5,754
Adjustments in respect of previous years - - 319
Deferred tax charge/(credit)
Origination and reversal of temporary differences 112 143 (81)
Derecognition/(recognition) of deferred tax assets - - 37,761
Adjustments in respect of previous periods - - (9)
Total tax (266) 1,328 43,744
Tax (credit)/charge attributable to:
Continuing operations (292) 2,166 5,904
Discontinued operations 26 (838) 37,840
Tax charge/(credit) on adjusting items in continuing operations
Total tax on profit before adjusting items 127 2,182 6,121
Total tax on adjusting items (419) (16) (217)
Total tax (charge)/credit in the income statement (292) 2,166 5,904
The tax expense has been calculated by applying the effective rate of tax
which is expected to apply for the year ended 31 March 2026 by jurisdiction,
using rates substantively enacted by 30 September 2025. The income tax expense
is recognised based on management's estimate of the weighted average effective
annual income tax rate expected for the full financial year. The estimated
adjusted average annual tax rate used for the period to 30 September 2025 on
continuing operations was 2.4% (HY2025: 17.6%). The changes in profit mix
across the various territories between H1/H2 as well as non-recognition of
taxes in the UK and US are the main drivers that impact the effective tax
rate. The tax effect of adjusting items are recognised in the same period as
the relevant adjusting item. The deferred tax assets in the UK continue not to
be recognised based on the assessment of future taxable profits against which
the asset could unwind.
7. Cash and cash equivalents/bank overdrafts
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
Cash and cash equivalents 5,690 48,827 136,493
Bank overdrafts (2,688) (40,677) (52,539)
Cash and cash equivalents and bank overdrafts per cash flow statement 3,002 8,150 83,954
Net cash
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
Cash and cash equivalents 3,002 8,150 83,954
Bank loans (1,856) (2,000) -
Loan arrangement fees 721 1,238 838
Net cash as presented in the financial review cash flow statement 1,867 7,388 84,792
8. Loans and borrowings
This note provides information about the contractual terms of the Group's
interest-bearing loans and borrowings.
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
$000 $000 $000
Non-current liabilities
Loan arrangement fees 459 495 120
459 495 120
Current liabilities
Bank loans and borrowings (1,856) (2,000) -
Loan arrangement fees 262 743 718
(1,594) (1,257) 718
At 30 September 2025, $1.9 million was drawn down under the Receivables
Finance facility. At 30 September 2024, $2.0 million was drawn down under the
Asset Backed Lending (ABL) facility.
On 11 July 2025, the Group entered into a new Receivables Finance Facility
with HSBC and NatWest. The facility has an initial minimum period of 36 months
and provides maximum £40 million funding based on a borrowing base linked to
eligible receivables across participating Group companies. Availability under
the facility is determined by reference to the value of receivables, subject
to eligibility criteria and concentration limits. The facility does not
include financial ratio covenants but is subject to certain operational
covenants.
The Receivables Finance Facility is secured over eligible receivables assigned
by participating Group companies. The facility is supported by specific
security arrangements, including debentures or equivalent local law security
documents, held by a security agent on behalf of the lenders.
During FY2025 the Group had an unsecured overdraft facility provided by HSBC
of £8.5 million. This facility was replaced with £15.0 million overdraft
facility on 30 May 2025 and was subsequently cancelled on introduction of the
Receivables Finance Facility.
During the period, the Group cancelled its Asset Backed Lending facility on 30
May 2025 following the disposal of DG Americas. This facility had previously
been amended in April 2025 to extend its maturity to June 2027 and reduce the
maximum facility amount to $100.0 million. Refer to note 15 of the FY2025
Annual Report for details.
Loan arrangement fees represent the unamortised costs in arranging the Group
facilities. These fees are being amortised on a straight-line basis over the
terms of the facilities.
The Group is party to supplier financing arrangements with a number of its key
customers and the associated balances are recognised as trade receivables
until receipt of the payment from the bank, at which point the receivable is
derecognised. At 30 September 2025 nothing had been drawn down under this
arrangement.
9. (Loss)/earnings per share
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Total (loss)/earnings $000 $000 $000
(Loss)/earnings
(Loss)/earnings attributable to equity holders of the Company (146,422) 3,974 (99,685)
Adjustments
Adjusting items (net of non-controlling interest effect) 142,053 7,611 57,004
Tax relief on adjustments (net of non-controlling interest effect) (209) (833) 37,331
Adjusted (loss)/earnings attributable to equity holders of the Company (4,578) 10,752 (5,350)
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Earnings attributable to Continuing Operations $000 $000 $000
Earnings
Earnings attributable to equity holders of the Company 3,930 5,472 5,751
Adjustments
Adjusting items (net of non-controlling interest effect) 941 4,341 7,084
Tax relief on adjustments (net of non-controlling interest effect) (209) (16) (78)
Adjusted earnings attributable to equity holders of the Company 4,662 9,797 12,757
Unaudited Unaudited Twelve
Number of shares six months six months months
In thousands of shares
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Issued ordinary shares at 1 April 98,308 98,279 98,279
Shares relating to share options 42 28 28
Less: shares held by Employee Benefit Trust (3,011) (3,028) (3,026)
Weighted average number of shares for calculation of basic EPS 95,339 95,279 95,281
Effect of dilutive potential shares - share awards 453 1,049 1,083
Weighted average number of shares for calculation of diluted EPS 95,792 96,328 96,364
Earnings per share are calculated as follows:
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Total (loss)/earnings Cents Cents Cents
(Loss)/earnings per share
Basic (loss)/earnings per share (153.6) 4.1 (104.7)
Impact of adjusting items (net of tax) 148.8 7.2 99.1
Basic adjusted (loss)/earnings per share (4.8) 11.3 (5.6)
Diluted (loss)/earnings per share (152.9) 4.1 (103.4)
Diluted adjusted (loss)/earnings per share (4.8) 11.2 (5.6)
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Earnings attributable to Continuing Operations Cents Cents Cents
Earnings per share
Basic earnings per share 4.1 5.7 6.0
Impact of adjusting items (net of tax) 0.8 4.6 7.4
Basic adjusted earnings per share 4.9 10.3 13.4
Diluted earnings per share 4.1 5.7 6.0
Diluted adjusted earnings per share 4.9 10.2 13.2
Adjusted earnings per share is provided to reflect the underlying earnings
performance of the Group.
Basic earnings per share
Basic EPS is calculated by dividing the profit for the period attributable to
ordinary shareholders by the weighted average number of shares outstanding
during the period, excluding own shares held by the Employee Benefit Trust.
Diluted earnings per share
Diluted EPS is calculated by dividing the profits for the period attributable
to ordinary shareholdings by the weighted average number of shares outstanding
during the period, excluding own shares held by the Employee Benefit Trust,
plus the weighted average number of ordinary shares that would be issued on
the conversion of the potentially dilutive shares.
10. Financial instruments
Derivative financial instruments
The fair value of forward exchange contracts is assessed using valuation
models taking into account market inputs such as foreign exchange spot and
forward rates, yield curves and forward interest rates.
There have been no material changes in the fair value measurements of
financial instruments or in the valuation techniques and inputs used since the
last annual reporting date. For detailed information on the fair value
hierarchy (Levels 1-3), valuation techniques, and inputs used, please refer to
note 24 of the audited consolidated financial statements for the year ended 31
March 2025.
All other financial assets and liabilities are measured at amortised cost.
The Group held the following financial instruments at 30 September 2025, which
were measured at Level 2 fair value subsequent to initial recognition:
Unaudited Unaudited Twelve
six months six months months
ended ended ended
30 Sep 2025 30 Sep 2024 31 Mar 2025
Forward exchange contracts carrying amount $000 $000 $000
Derivative financial assets 332 403 1
Derivative financial liabilities (680) (319) (534)
The Group has forward currency hedging contracts outstanding at 30 September
2025 designated as hedges of expected future purchases in US dollars for which
the Group has firm commitments, as the derivatives are based on forecasts and
an economic relationship exists at the time the derivative contracts are taken
out. The terms of the forward currency hedging contracts have been negotiated
to match the terms of the commitments.
Assets held for sale
The Group had assets held for sale at 30 September 2025 of $0.2 million
(HY2025: $5.6 million), which were measured at Level 2 fair value.
11. Commitments and contingencies
At 30 September 2025, the Group had outstanding authorised capital commitments
to purchase plant and equipment for $nil (HY2025: $4.9 million). At 30
September 2025, the Group has estimated lease commitments for leases not yet
commenced of $nil (HY2025: $18.6 million).
The Group has identified a parent company guarantee relating to a lease for an
industrial property held by DG Americas. DG Americas was sold in May 2025 and
subsequently filed for Chapter 11 in July 2025. At this stage, due to the
early stage of bankruptcy proceedings, it is not practicable to estimate the
potential financial effect of this guarantee. The obligation is disclosed as a
contingent liability under IAS 37 and will be reassessed as further
information becomes available.
12. Related parties
As at 30 September 2025, there are no changes to the related parties or types
of transactions as disclosed at 31 March 2025.
13. Non-adjusting post balance sheet events
There were no known material non-adjusting events which occurred between the
end of the reporting period and prior to the authorisation of this interim
report.
REGISTERED OFFICE
Howard House
Howard Way
Interchange Park
Newport Pagnell
MK16 9PX
IG Design Group plc
is registered in
England and Wales,
number 1401155
Visit us online at
thedesigngroup.com
ADVISERS
Financial and nominated
adviser and broker
Canaccord Genuity Limited
88 Wood Street
London EC2V 7QR
Independent auditors
PricewaterhouseCoopers LLP
Exchange House
Central Business Exchange
Midsummer Boulevard
Central Milton Keynes
MK9 2DF
Public relations
Alma Strategic Communications
71-73 Carter Lane
London EC4V 5EQ
Share registrar
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds LS1 4DL
By phone:
UK - 0371 664 0300
Calls are charged at the standard geographic rate and will vary by provider.
Calls made outside the United Kingdom will be charged at the applicable
international rate. Lines are open between 9.00 - 17.30, Monday to Friday
excluding public holidays in England and Wales.
By email: shareholderenquiries@cm.mpms.mufg.com
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR KFLFBELLLFBF
Copyright 2019 Regulatory News Service, all rights reservedRecent news on IG Design
See all newsREG - IG Design Group PLC - Interim Results
AnnouncementREG - IG Design Group PLC - Notice of Investor Presentation
AnnouncementREG - IG Design Group PLC - Trading Update
AnnouncementREG - IG Design Group PLC - Results of Annual General Meeting
AnnouncementREG - IG Design Group PLC - PDMR Dealing
Announcement