REG - IG Design Group PLC - Trading Update

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RNS Number : 0050F  IG Design Group PLC  28 October 2025

28 October 2025

IG Design Group plc

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

Trading Update

Half-year results support confidence in delivering full-year guidance

IG Design Group plc, a leading designer, innovator and manufacturer across
various celebration and creative categories, announces its post-close trading
update ahead of the release of its unaudited results for the six months ended
30 September 2025 ('the period').

The Group completed the sale of DG Americas to Hilco on 30 May 2025. As
previously set out, the FY2026 reported results will include two months of DG
Americas' trading losses, associated transaction costs, and non-cash
impairment and/or loss on disposal.

The continuing Group comprises businesses in the UK, continental Europe and
Australia. These businesses have less complex models, and a strong heritage
that benefit from long-established and stable relationships with the major
retailers. The Group benefits from a combination of well-structured product
ranges with a strong focus on design and innovation, supported by a
geographically diverse market footprint, trading with 70 countries.

Financial

The Group's first-half performance reaffirms the Board's 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 91%, providing confidence that full-year performance will remain
aligned with guidance.

The continuing Group (previously DGI) revenue for the period is expected to be
c.13% lower than the prior year. This reflects the market headwinds previously
communicated at the time of the full-year results, principally softer demand
in the UK and the tariff impact on UK sales into the US, but also competitive
pricing pressure in Europe. Additionally, c.$7 million of expected revenue has
shifted into the second half of the year due to timing of shipments, primarily
in Europe.

Adjusted operating profit from continuing operations for the period is
anticipated to be c.$5.6 million (4.3% adjusted operating margin). The Group
remains confident that full-year adjusted operating margins will be maintained
within the guided range of 3-4%, supported by continued operational
efficiencies, disciplined cost control, and a focus on higher-margin channels.

The Group ended the period with a net cash position of c.$2 million (HY2025:
$7.4 million). Total cash outflow for the period included c.$33 million
relating to DG Americas. The continuing Group cash outflow in the period
improved by c.13% year-on-year which reflects progress and discipline in cash
and working capital management.

Strategic and Corporate Developments

The CEO recruitment process remains underway. Stewart Gilliland remains
committed to the role of Interim Executive Chair until an appointment has been
finalised.

Hilco's sale process of Design Group Americas, Inc. is progressing, and the
potential future net proceeds, if any, will be determined upon completion of
the wind-down of the business.

Outlook

The Group enters the second half of the year with strong revenue visibility, a
robust orderbook, and a net positive cash position. The Board remains
confident in meeting full-year expectations and continues to prioritise
opportunities that support sustainable growth in both revenue and margin over
the long term.

Further details on the performance for the six months, including updated
segment reporting, the disposal of DG Americas and the outlook for the
remainder of the year, will be provided in the interim results which are
scheduled to be published on 2 December 2025.

 

 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

 

 

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