Full Year Results-IG DESIGN GROUP PLC

Full Year Results-IG DESIGN GROUP PLC

IG Design Group PLC

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

Results for the year ended 31 March 2023

IG Design Group plc, one of the world's leading designers, innovators and manufacturers of Gift packaging, Celebrations, Craft & creative play, Stationery, Gifting and related product categories announces its audited results for the year ended 31 March 2023.

Highlights for the year ended 31 March 2023

Financial Highlights

FY2023

FY2022

Revenue

$890.3m

$965.1m

Adjusted(a)

-          Profit/(loss) before tax

$9.2m

($1.3m)

-          Diluted loss per share

(0.2c)

(7.7c)

Reported

-          (Loss)/profit before tax

($18.9m)

$2.2m

-          Diluted loss per share

(28.6c)

(3.3c)

Net cash as at the period end

$50.5m

$30.2m

Full year dividend

-

1.7c

Average leverage

0.6x

1.0x

 

(a)   Adjusted results exclude the impact of adjusting items - for further detail see alternative performance measures reconciliation within the detailed financial review 

·   Adjusted profit before tax was significantly ahead of initial expectations mostly driven by strong trading in Europe, and further benefits from ongoing restructuring initiatives in the US

·   We delivered on customer commitments, but reported revenues were down by nearly 8% (4% on constant currency) mainly as a result of adverse foreign currency movements, lower second-half volumes in DG Americas and the strategic decision to continue to exit from unprofitable contracts in the US

·   Margins improved due to continued efforts to manage costs, simplify the business and some recovery of prices in the face of continued high cost inflation

·   Reported profit before tax was significantly impacted by a non-cash, one-off write-down of the historic goodwill in the UK business

·   The Group remained net cash positive at year-end, at $50.5 million, with the strong year-on-year improvement reflecting better working capital management

·   In line with the Board's previous guidance, no dividend is being declared for the year (FY2022: 1.25 pence)

·   Post year end, the Group announced that it had completed the refinancing of its banking facilities to June 2026 which has secured access to appropriate financing to support the seasonal working capital cycle

·   Board changes include the appointment of Paul Bal, previously Group CFO, as Group CEO from April 2023; Rohan Cummings joins as Group CFO from July 2023; Lance Burn stepped down as Interim Group COO at the end of March 2023; and Claire Binyon joined as an independent Non-Executive Director in June 2022

·   Senior management team strengthened with the appointments of new CEO and CFO for DG Americas and two new MDs within the DG International businesses

·   Supported our workforce through additional cost of living enhancements

Outlook

·   The immediate priority of the Group remains continued recovery in its financial performance with particular focus on DG Americas, where the leadership team has been strengthened

·   The FY2024 orderbook continues to build, at 62% of budgeted revenues (FY2022: 71%), reflecting a return to more normalised phasing of orders between H1 and H2 than experienced last year, as customers expect more stable supply chains

·   Inflation remains an issue, with pricing challenges in all markets, but especially so in the UK

·   A new strategy to restore sustainable, profitable growth is being developed and cascaded through the Group

·   During FY2024, the Board anticipates continued progress with its aspiration to return to pre-pandemic operating profit margins by the end of FY2025

Stewart Gilliland, Non-Executive Chair, commented:

"FY2023 was a strong year of recovery and delivery by the Group, notwithstanding continued economic challenges across our markets. Last year's decision to place stronger, immediate focus on recovering margins, simplifying the business model and better managing working capital delivered results ahead of our expectations. I thank our teams across the Group for their extraordinary efforts. Our aspiration to return to pre-pandemic operating margins by the end of FY2025 remains, and we hope to continue growing profits and margins in FY2024 despite the continuing tough market back-drop and the uncertainty it is creating for our customers and our consumers.

We have made good progress in strengthening our leadership teams, both at Board and local level, and especially so in the US. We have been able to attract high calibre individuals as well as promote talent from within. With more stability in future leadership, we are able to outline a new strategy designed to return the Group to more sustainable and profitable growth, building on the recovery that is underway. We have a refreshed team, scale that we can leverage, very strong customer relationships, and have recently secured longer-term financing, all of which gives us a stronger foundation from which to build a more resilient business."

 

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