IG Design profits set to improve in H2

29th Oct 2024 09:29

(Sharecast News) - Stationery product manufacturing company IG Design said on Tuesday that profits were anticipated to improve in H2.

IG Design said revenue had declined 11% in the six months ended 30 September, driven by DG Americas, which resulted in a 62% year-on-year decline in adjusted profit in H1.

However, IG anticipates profit improvement in H2, with its business simplification, efficiency and cost-saving initiatives all driving profit recovery.

The AIM-listed group stated it had executed a number of cost-saving initiatives during H1, including the closure of its Chinese manufacturing facility and "significant restructuring" within DG Americas, which will positively impact H2 profitability.

"The board believes the trading results for the full year to 31 March 2025 remain in line with its revised expectations as communicated at the group's AGM statement last month. This represents strong year-on-year improvement in both profit and cash flow compared to the prior financial year," said IG Design.

"It will also deliver the board's aspiration to return the group to pre-pandemic operating margins of at least 4.5% by the end of FY2025."

As of 1135 GMT, IG Design shares were 4.86% higher at 132.65p.

Reporting by Iain Gilbert at Sharecast.com