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
% Group revenue
HY2026
HY2025
Change
HY2026
HY2025
Change
HY2026
HY2025
$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 $m
HY2025 $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 translation reserve
138,158
-
-
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 intangible assets
-
-
7,069
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 In thousands of shares
six months
six months
months
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
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END
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