TIDMIGR
RNS Number : 9489V
IG Design Group PLC
20 April 2021
20 April 2021
IG Design Group plc
("Design Group", the "Company" or the "Group")
Post Close Trading Update
Continued strength in the final quarter delivers full year
performance in line with expectations
IG Design Group plc, one of the world's leading designers,
innovators and manufacturers of celebrations, craft, gifting,
stationery and creative play products, today issues a post close
trading update for the financial year ended 31 March 2021.
Post close trading update
The Group finished the financial year with reported revenues up
40% year on year at over $870 million (FY20: $624 million), driven
by a full year of trading from CSS Industries Inc. ('CSS')
following the completion of the acquisition on 3 March 2020. These
results reflect strong growth in the Americas as a result of the
CSS acquisition, and a much better than expected performance in
International, particularly in Australia and Europe. Despite the
impact of Covid-19, like for like revenues of the Group (excluding
CSS) for the financial year were down only c.5% (proforma CSS
revenues year on year were only 1% down). Due to this strong sales
performance, full year earnings are anticipated to be in line with
current market expectations.
As at 31 March 2021 the Group had net cash of over $76 million
(FY20: $52.4 million) following strong cash generation from across
the Group. As a result, the Group expects to report average
leverage for the year to 31 March 2021 close to zero, reflecting
its effective cash management. The Company's banking facilities
remain in excess of $300 million. Total Adjusting items, which
during the financial year primarily related to the one-time CSS
integration costs, are anticipated to be significantly down year on
year.
Overall, our customers continue to trade well and the high
sell-through rates seen over the 2020 festive period provide a good
basis to build a stronger orderbook for the new financial year.
Everyday sales have also remained robust, particularly in the Craft
& Creative Play categories in the US. Our enlarged e-commerce
based activities are delivering an increasingly large sales
contribution, and we plan to further develop this area in the new
financial year. Product design and innovation continues to focus on
commercial sustainable product lines. We've had great success with
our recently developed Eco Nature(TM) brand which launched
nationwide as an everyday range with the UK's largest retailer in
March 2021.
Our manufacturing and sourcing operations have remained open for
the final quarter of the year, maintaining their focus on working
closely with our customers to maximise trading opportunities.
The integration of CSS continues to progress well and to deliver
synergy savings ahead of schedule. In addition, the fully
integrated management team's focus on its programme of priorities
is developing further sales opportunities and cost savings ahead of
original estimates.
The Company plans to pay a final dividend for the financial year
in line with market expectations and will provide further details
when it announces its full year results on 15 June 2021.
Outlook for FY2022 and beyond
Looking ahead, whilst the Group remains cautious about the
ongoing impact of Covid-19 and its associated impact on raw
material and freight pricing, we are extremely encouraged by the
resilience of our diverse customer base and our broad product
portfolio. Assuming the current progress in opening up the regional
economies in which our businesses operate continues, the Board
expects significant year on year growth in both revenues and
earnings in FY2022, in line with current market expectations.
Non-Executive Director Resignation
Greg Hodder has resigned for personal family reasons as
non-executive director of the Group, effective 30 April 2021. The
Board has begun the search for a new Non-Executive Director to be
appointed in due course.
For further information, please contact:
IG Design Group plc Tel: 0152 588
7310
Paul Fineman, Chief Executive Officer
Giles Willits, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser Tel: 0207 523
and Broker) 8000
Bobbie Hilliam, NOMAD
Alex Aylen, Sales
Alma PR Tel: 0203 405
0205
Susie Hudson
Sam Modlin
Molly Gretton
About IG Design Group plc
IG Design Group plc, the largest consumer gift packaging
business in the world, is a designer, innovator and manufacturer of
products that help people celebrate life's special occasions.
Design Group works with more than 11,000 customers in over 80
countries throughout the UK, Europe, Australia and the USA.
Its products are found in over 210,000 retail outlets, including
several of the world's biggest retailers, for example Walmart,
Target, Amazon, Costco, Lidl and Aldi. Its brand, Tom Smith, also
holds the Royal Warrant for the supply of Christmas crackers and
Christmas wrapping paper to the Royal family. Design Group is a
diverse business operating across multiple regions, categories,
seasons and brands.
Its five major product categories are: Celebrations, Gifting,
Craft & creative play, Stationery and 'Not-for-resale'
consumables. It offers customers a full end-to-end service from
design through to distribution, offering both branded and bespoke
products from the value-focused through to the higher-margin ends
of the market.
The Company was admitted to the Alternative Investment Market of
the London Stock Exchange in 1995 under the name 'International
Greetings plc' and rebranded to IG Design Group plc in 2016. For
further information please visit www.thedesigngroup.com.
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