IG Design reports revenue drop, expects H2 recovery

LONDON - IG Design Group PLC, a leading provider of design-led gift packaging and celebrations products, has announced a post-close trading update revealing an 11% decline in group revenue for the six months ending September 30, 2024. The decrease, attributed primarily to its DG Americas division, led to a 62% fall in adjusted profit for the first half (H1) compared to the same period last year.

Despite the downturn, the company remains optimistic about the second half of the fiscal year (H2). IG Design has implemented several cost-saving measures, including the closure of its manufacturing facility in China and a significant restructuring within DG Americas. These actions are expected to contribute to a profit in H2, marking a turnaround from the loss reported in the same period of the previous year.

The group's cash position has strengthened, ending the period with net cash of $7.4 million, a significant improvement from the net debt of $15.1 million reported at the end of H1 2023. This shift indicates a robust average cash balance throughout the period.

Looking ahead, the Board of IG Design maintains that the full-year results ending March 31, 2025, should align with the revised expectations set during the last AGM. The company aims to return to pre-pandemic operating margins of at least 4.5% by the end of the 2025 fiscal year, signaling a year-on-year enhancement in both profit and cash flow compared to the previous financial year.

IG Design will provide more comprehensive details on its six-month performance and future outlook in the interim results, scheduled for publication on November 26, 2024. This update is based on a press release statement from the company.

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Source: Investing.com