IG Design Group PLC – Interim Results

IG Design Group plc, one of the world’s leading designers, innovators and manufacturers of celebrations, gifting, stationery and creative play products, is pleased to announce its interim results for the six months ended 30 September 2019.

 

Financial Highlights

 

·	Reported revenue up 21% to £248.4 million (H1 2019: £205.2 million) driven by organic growth and the full year effect of the acquisition of Impact Innovations Inc.
·	Adjusted operating profit* increased 21% to £23.6 million (H1 2019: £19.4 million)
·	Adjusted profit before tax* up 14% to £21.5 million (H1 2019: £18.9 million)
·	Profit before tax up 22% to £17.1 million (H1 2019: £14 million)
·	Adjusted fully diluted earnings per share* up 2% at 20.1p (H1 2019: 19.7p)
·	Reported diluted earnings per share up 16% at 16.0p (H1 2019: 13.8p)
·	Net debt** reduced by £13.8m to £86.2 million (H1 2019: £100.0 million) helping reduce average leverage*** to 1.0 times (12 months to 30 September 2018: 1.3 times)
·	Interim dividend per share increased by 20% to 3.0p (H1 2019: 2.5p)

 

*stated before exceptional items, amortisation of acquired intangibles and LTIP charges

**excludes IFRS 16 lease liabilities

***average leverage is 12 month average debt divided by adjusted EBITDA

 

 Strategic and Operational Highlights

 

·	Group sales and profits growth delivered from strong performances in the USA, Europe and the UK
·	Performance to date achieved despite the backdrop of US-China tariff headwinds. Considerable progress made to mitigate tariff impact going forward which will benefit our performance in the coming year
·	Continued to implement fast payback capital investments, ensuring we remain market leaders, and to support the growth of the Group going into the 2020/21 selling season

 

Outlook

 

With good forward visibility from our order book, which is at record levels, we remain on course to deliver full year performance in line with expectations and to exploit opportunities for further growth in 2021.

 

Commenting on the performance, Paul Fineman, Group CEO, said:

“Our strong start to the year highlights the strength and agility of our business. Our initiatives and investments are bearing fruit and will drive further growth into the future.

Our long-established relationships with many of the world’s leading and ‘winning’ retailers provides a strong foundation for us to meet ambitious growth targets, both organically and through an active pipeline of acquisition opportunities, whilst maintaining prudent average leverage.

We remain focused on driving growth, maintaining our financial strength and continuing to deliver in line with expectations, whilst ensuring we continue to make the most of our many exciting future prospects.”