IG Design delivers 'significant growth' in FY profits

30th Apr 2024 10:54

(Sharecast News) - Greeting cards manufacturer IG Design said on Tuesday that it had experienced "significant growth" in profit and strong cash flows in the year ended 31 March, ahead of expectations.

IG Design said it continued to make "good progress" on its turnaround journey of improving operational efficiency and simplifying the business, resulting in "significant growth in profit and margin" for the year.

The AIM-listed group now expects to deliver adjusted pre-tax profits of $25.9m, up from $9.2m a year earlier and ahead of market expectations. Operating profit margins were expected to be roughly 3.8%, marking a recovery of 200 basis points on the previous year.

IG Design also expects to report full-year revenues of approximately $800.0m, in line with current expectations and a 10% reduction year-on-year.

The company also noted that it expects to make a provision of $5.5m for potential liabilities relating to pre-acquisition era duties owed in the recently acquired DG Americas division but said it was taking legal advice on the matter.

Chief executive Paul Bal said: "I am delighted with our progress in improving operational efficiency and simplifying our business. Through our work, we have delivered another year with significant improvement in profit and margin.

"Looking ahead, whilst the external environment remains uncertain, we remain confident that our strategy is the right one, and that we will achieve our aspiration to return the group to pre-Covid-19 adjusted operating profit margins by 31 March 2025."

As of 1050 BST, IG Design shares had surged 33.33% to 162.0p.

Reporting by Iain Gilbert at Sharecast.com