REG - IG Design Group PLC - Trading Update

IG DesignAnnouncement

29/10/2024 07:00

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RNS Number : 9393J  IG Design Group PLC  29 October 2024

29 October 2024

IG Design Group Plc

('Design Group' or the 'Group')

Post-Close Update

IG Design Group PLC announces its post-close trading update ahead of the
release of its results for the six months ended 30 September 2024 ('the
period').

In line with the expectations set out in last month's pre-AGM trading update,
Group revenue has declined 11% in the period, driven by DG Americas, which
resulted in a 62% decline in adjusted profit in H1 compared to the prior year
period.  However, as stated last month, we anticipate profit improvement in
H2.  Business simplification, efficiency and cost-saving initiatives will
drive profit recovery in H2 such that we expect to deliver a profit in that
period, compared to a loss in that period last year. We have executed a number
of cost saving initiatives during H1 including the closure of the Chinese
manufacturing facility and significant restructuring within DG Americas which
positively impacts the higher H2 profitability.

Cash generation remains strong. At the 30 September 2024 the Group ended with
net cash of $7.4 million (H1 2023: Net Debt $15.1 million) driving a positive
average cash balance for the period.

Outlook for the full year:

The Board believes the trading results for the full year to 31 March 2025
remain in line with its revised expectations as communicated at the Group's
AGM statement last month. This represents strong year-on-year improvement in
both profit and cash flow compared to the prior financial year.  It will also
deliver the Board's aspiration to return the Group to pre-pandemic operating
margins of at least 4.5% by the end of FY2025.

Further details on the performance for the six months, and the outlook for
the period ahead, will be set out with the Company's interim results to be
published on 26 November 2024.

For further information, please contact:

 IG Design Group Plc                           Tel: +44 (0)1525 887310

 Paul Bal, Chief Executive Officer

 Rohan Cummings, Chief Financial Officer
 Canaccord Genuity Limited (Nomad and Broker)  Tel:  +44 (0)20 7523 8000

 Bobbie Hilliam

 Harry Pardoe
 Alma Strategic Communications                 Tel:  +44 (0)20 3405 0209

 Rebecca Sanders-Hewett                        designgroup@almastrategic.com (mailto:designgroup@almastrategic.uk)

 Sam Modlin

 Will Merison

 

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