REG - IG Design Group PLC - Trading Update

IG DesignAnnouncement

24/08/2021 07:00

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RNS Number : 5215J  IG Design Group PLC  24 August 2021

24 August 2021

IG Design Group plc

("Design Group", the "Company" or the "Group")

 

Trading Update

 

Strong revenue growth but challenging cost headwinds

 

 

IG Design Group plc, one of the world's leading designers, innovators and
manufacturers of celebrations, craft, gifting, stationery and creative play
products, today issues a trading update for the four months ended 31 July
2021.

 

The Group has had a good start to the new financial year with like-for-like
revenue for the period up 25% on the prior year and up 10% on proforma
revenues (including CSS prior to ownership) for the four months to 31 July
2019. These results are driven by growth across both the Americas and
International divisions reflecting the ongoing success of the Group's 'Working
with the Winners' strategy.

 

The business is experiencing challenging cost headwinds, particularly in
relation to sea freight, as well as regional operational disruption relating
to the ongoing impact of Covid -19 restrictions on the logistics functions
within the Company's global supply chain. Nevertheless, as a result of the
strong sales momentum and work across the Group to mitigate the impact of the
cost pressures earnings to date have been in line with expectations.

 

Looking forward the Group's orderbook for the year continues to be ahead of
prior year, underpinning a full year sales outlook ahead of expectations, and
as a result the full year forecast earnings remain in line with current market
expectations, albeit with the ongoing issues associated with the current
supply chain and Covid-19 related challenges.

 

At 31 July 2021 the Group had net debt of $5 million (31(st) July 2020: net
debt $29 million) reflecting the strong cash generation in the prior year and
ongoing robust cash management in the current year.

 

Paul Fineman, Group CEO, commented:

 

"Working with the world's winning retailers and e-tailers has helped deliver
our double-digit revenue growth for the year to date and underpins our strong
forward orderbook, as we navigate the ongoing impact of Covid-19 across our
supply chain.

 

Furthermore, while we remain focussed on meeting customer requirements for the
current year, we have confidence in our mid-term outlook and continue to
implement initiatives that support the execution of our recently announced
Growth Plan."

 

For further information, please contact:

 

 IG Design Group plc                                       Tel: 0152 588 7310
 Paul Fineman, Chief Executive Officer
 Giles Willits, Chief Financial Officer

 Canaccord Genuity Limited (Nominated Adviser and Broker)  Tel: 0207 523 8000
 Bobbie Hilliam, NOMAD

 Alex Aylen, Sales

 Alma PR                                                   Tel: 0203 405 0205
 Susie Hudson

Sam Modlin

 

About IG Design Group plc

 

IG Design Group plc, the largest consumer gift packaging business in the
world, is a designer, innovator and manufacturer of products that help people
celebrate life's special occasions. Design Group works with more than 11,000
customers in over 80 countries throughout the UK, Europe, Australia and the
USA.

 

Its products are found in over 210,000 retail outlets, including several of
the world's biggest retailers, for example Walmart, Target, Amazon, Costco,
Lidl and Aldi. Its brand, Tom Smith, also holds the Royal Warrant for the
supply of Christmas crackers and Christmas wrapping paper to the Royal family.
Design Group is a diverse business operating across multiple regions,
categories, seasons and brands.

 

Its five major product categories are: Celebrations, Gifting, Craft &
creative play, Stationery and 'Not-for-resale' consumables. It offers
customers a full end-to-end service from design through to distribution,
offering both branded and bespoke products from the value-focused through to
the higher-margin ends of the market.

 

The Company was admitted to the Alternative Investment Market of the London
Stock Exchange in 1995 under the name 'International Greetings plc' and
rebranded to IG Design Group plc in 2016. For further information please
visit www.thedesigngroup.com.

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