REG - IG Design Group PLC - Trading Update and Acquisition of Glenart, S.A.

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RNS Number : 4836C  IG Design Group PLC  30 April 2026

30 April 2026

IG Design Group plc

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

FY2026 Trading Update and Acquisition of Glenart, S.A.

Revenue, profit and cash ahead of expectations

IG Design Group plc, a leading designer, innovator and manufacturer across
various celebration and creative categories, provides an update on its
financial performance for the year ended 31 March 2026 and post year-end
material developments. The trading update refers to the continuing business of
the Group only, excluding adjusting items and losses related to the disposal
of DG Americas announced in May 2025.

Trading Update

Following the positive trading update issued in February, the Group has
continued to experience good trading momentum, and the Board is pleased to
announce that FY2026 results are expected to be ahead of market consensus and
Board expectations*. The Group expects to report FY2026 revenues of c$292
million and adjusted operating profit of c$12.8 million, representing an
adjusted operating margin of 4.4%, and delivering adjusted profit before tax
of c$11.5 million**.

Cash has significantly exceeded expectations with year-end net cash of c$72
million. Excluding c$35 million of outflow in the year relating to DG
Americas, the continuing Group generated over $20 million of cash during the
year, reflecting strong working capital management and $4 million of proceeds
from the sale of a surplus UK warehouse. The Group has a strong balance sheet
position and an update on the future capital allocation policy will be
provided in our full-year results.

The Board acknowledges the ongoing macroeconomic uncertainty, including cost
pressures, inflation, and softer consumer confidence, and remains cautious in
its outlook. However, the Board is encouraged by FY2026 results and the clear
outperformance against expectations set earlier in the year. Together with the
recently announced appointment of a Group CEO, this provides a solid platform
for continued progress against the Group's long-term strategic growth pillars.

Acquisition of Glenart, S.A.

The Group is pleased to announce the acquisition of 100 percent of the equity
interest in Glenart Trading Proprietary Limited, Marcorp Marketing Consultants
Proprietary Limited and Glenart Trading Limited (collectively referred to as
'Glenart S.A.')  for a total consideration of c£5.3 million (including
c£1.3m of cash within the business and working capital adjustments). The
consideration comprises an initial cash payment of c£3.4 million, with
deferred consideration payable over three years, and additional potential
earn-out consideration contingent on future business performance. The
acquisition is financed from working capital and expected to be earnings
enhancing. For the year ended 28 February 2026, the business reported
unaudited revenues of c£4million, PBIT of c£0.8 million and EBITDA of
c£1million, from a net asset base of c£2.7 million.

Glenart S.A. is a South African manufacturer within the Group's "Celebrate"
category, with a particular strength in crackers, and is therefore highly
complementary to the Group's existing operations. The business generates the
majority of its revenues in South Africa, the UK and the USA, and operates
across similar mass-market and trade channels to the Group. The Board
considers the acquisition a bolt-on, strategically aligned and a compelling
opportunity to expand the Group's geographical presence in a complementary
product offering.

 

(*) Current guidance: revenue $280-285 million, adjusted operating margin 4%
and cash $55-60 million. We believe consensus to be revenue $282 million,
adjusted operating margin 4% and cash $56 million.

(**) The Group intends to adopt GBP as its presentational currency for
consolidated financial statements, replacing USD, effective from the FY2026
full-year results.

 

 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 (mailto:designgroup@almastrategic.com)
 Sam Modlin
 Will Merison

 

Notes to Editors:

 

IG Design Group plc is one of the world's leading designers, innovators and
manufacturers of gift packaging, greeting cards, stationery, creative play
products and related items. The Group designs, sources and manufactures a
broad portfolio of products across multiple categories and occasions,
encompassing every day, seasonal and celebration ranges.

 

The Group operates across key international markets, with a strong presence in
the United Kingdom, Europe and Australia. Its products are sold to a diverse
customer base including major retailers and supermarkets such as Tesco, Costco
and Aldi, as well as discounters, online platforms and independent stores. The
Group's heritage brand, Tom Smith, holds a Royal Warrant for the supply of
Christmas crackers and Christmas wrapping paper to the Royal Family, a
distinction it has held continuously since 1906.

 

Across IG Design Group's global teams, it manages a portfolio of more than
22,000 SKUs, supplying over 550 million units annually to customers in
approximately 70 countries. The Group operates a vertically integrated model,
combining in‑house design expertise with global sourcing, manufacturing,
distribution and fulfilment capabilities. Its manufacturing footprint includes
three facilities located in Wales, the Netherlands and Poland. This integrated
platform enables the Group to deliver innovative, responsibly sourced products
at scale, while maintaining cost efficiency, speed to market and flexibility.

 

IG Design Group plc is listed on the AIM market of the London Stock Exchange.

 

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