TIDMIGR
RNS Number : 1270W
IG Design Group PLC
15 April 2019
15 April 2019
IG Design Group PLC
(the "Company", the "Group" or "Design Group")
Trading Update and Notice of Results
Strong final quarter wraps up another year of double digit
revenue and profits growth
IG Design Group plc, one of the world's leading designers,
innovators and manufacturers of Gift Packaging & Celebrations,
Stationery & Creative Play, Giftware & related product
categories announces its trading update in relation to the year
ended 31 March 2019.
The Group's strong trading performance continued in the final
quarter delivering revenue and profit growth across all regions in
the year. As a result, the Board anticipates the financial
performance of the Group to be in line with market expectations and
significantly up year on year.
The Company's results for the full year to 31 March 2019 will be
announced on 11 June 2019.
Highlights
- Revenue for the year to 31 March 2019 is expected to increase
37% on the prior year driven by the acquisition of Impact
Innovations Inc. ('Impact') and organic growth of 9.8%.
- The Group expects operating profits to be significantly ahead
of last year as a result of the Impact acquisition and improved
overall net operating margins*
- Net cash ended the financial year significantly ahead of the
prior year and ahead of expectations, with average leverage during
the year expected to have been below 1.3x EBITDA* (FY18: 1.5x
EBITDA)
- ROCE is expected to increase year on year, reflecting another
year of focus on working capital management and profit growth
- Exceptional costs remain in line with expectations at
approximately GBP8-9 million, primarily reflecting the acquisition
of Impact and the subsequent US restructuring
- The Board remains committed to its progressive dividend policy
and, in line with previous guidance, expects to increase the
Company's earnings pay-out ratio at the full year
* calculated before Exceptional items, LTIP charges and the
amortisation charge relating to acquired intangibles
Americas
In the USA, our business continues to deliver strong organic
growth alongside increased sales from the recent acquisition of
Impact. The integration of Impact has proceeded on plan with gift
wrap manufacturing operations now fully integrated into one
facility in Memphis. As such, the delivery of the annualised $5m of
operational synergies from FY21, identified at the time of the
acquisition, is being delivered in line with expectations.
Pleasingly, in March 2019, Impact was awarded 'Seasonal and
Celebration Supplier of the Year' by Walmart, the world's largest
retailer. A new ERP system has gone live and is currently being
rolled out across all of our operations in the US, driving further
efficiencies and providing a platform for significant growth.
UK
In the UK, although faced with a challenging market environment,
the business continued to grow both revenues and profits benefiting
from the success of our recently developed 'Not-for-resale bags'
initiative and the continued unification of our businesses under
one leadership team.
Europe
In Europe, a record overall performance was achieved as a result
of strong sales, increased margins and improved efficiencies,
driven by an increase in the mix of revenue toward higher margin
product and the operational benefits delivered following the
installation of our new high-speed printing press in March
2018.
Australia
In Australia, despite market headwinds, growth in sales and
profits has been achieved driven from existing and new customers.
The fully integrated Biscay acquisition, completed in January 2018,
is delivering the planned operational synergies.
Commenting on the year's performance, Paul Fineman, Group CEO,
said:
"Our strong performance in FY19 reflects our close relationships
with the world's leading retailers, our focus on innovation and
efficiency and the increasing benefit of scale as we continue to
grow.
It is particularly pleasing to have achieved significant organic
growth whilst also benefiting from the acquisition of Impact
Innovations and other investments made throughout this and prior
years. This achievement is testament to the global nature of our
business and the extent to which we have diversified and de-risked
the Group.
We look forward to continuing to drive the business forward,
with a focus on continued organic growth, supplemented by
compelling M&A."
This announcement contains inside information
- Ends -
For further information, please contact:
IG Design Group plc Tel: 0152 588 7310
Paul Fineman, Chief Executive
Giles Willits, Chief Financial Officer
Canaccord Genuity Limited (NOMAD and Broker) Tel: 020 7523 8000
Bobbie Hilliam - NOMAD
Alex Aylen - Sales
Alma PR Tel: 020 3405 0205
Rebecca Sanders-Hewett designgroup@almapr.co.uk
Susie Hudson
Sam Modlin
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END
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