IG Design Group PLC Trading Update (9457B)
January 16 2018 - 2:00AM
UK Regulatory
TIDMIGR
RNS Number : 9457B
IG Design Group PLC
16 January 2018
16 January 2018
IG Design Group PLC
(the "Company", the "Group" or "Design Group")
Strong trading delivers earnings upgrade
IG Design Group plc, one of the world's leading designers,
innovators and manufacturers of gift packaging, greetings,
stationery, creative play products and giftware, announces an
update for the third quarter, which covers the Group's Christmas
trading period to 31 December 2017.
The Group is pleased to report that following the positive
performance reported over the first six months ending 30 September
2017, trading has continued to be strong up to and throughout the
Christmas period.
In line with the strategy to further diversify the business, the
Group expects to deliver record revenues in FY18 with the continued
expansion of its global footprint outside the UK which the Board
expects will account for over 70% of sales by destination. All
regions are on track to achieve year on year revenue and profit
growth and we are therefore pleased to upgrade the Group's full
year performance with diluted earnings per share(1) expected to be
ahead of current market expectations and delivering strong
year-on-year growth. We continue to see strong cash conversion
across the Group and expect average leverage for FY18 to follow the
progress made in recent years and be significantly below an average
of two times.
Latest initiatives highlighted in our Half Year Results
Announcement remain on track to drive future revenues in FY19 and
beyond. These include:
- the installation of an additional state-of-the art printing press in
our gift wrap manufacturing operation in Holland, which will commence
production in Spring 2018
- the completion of the acquisition on 9 January 2018 of Biscay Greetings
Pty Ltd in Australia with operational and commercial synergies benefitting
FY19
- the upgrading of our IT systems in the USA to create enhanced processes,
capacity and speed across all aspects of our growing business
- the commencement in September 2017 of a new revenue initiative to manufacture
and sell premium paper bags in our factory in Wales to multiple retailers
Additionally, as a result of the level of the Group's US
earnings the Board expects earnings per share to benefit in FY19
and beyond from the recent US tax legislation changes. Furthermore,
the US tax rate change is expected to translate into lower tax
payments, thereby enhancing the cash generation of the Group. The
final US Tax Reform legislation is extensive and complex, as such
full guidance of its impact on the Group will be given at the time
of the announcement of the Group's final results in June 2018.
Paul Fineman, Chief Executive said:
"We are very encouraged with the performance of our businesses
across all regions. It is particularly pleasing that we have again
upgraded our expectations and we remain confident in the Group's
ability to report another year of excellent progress.
We are very well placed to continue to create sustainable value
for our shareholders through organic growth and will also continue
to seek compelling acquisition opportunities underpinned by an
ever-strengthening balance sheet and a long track record of proven
performance."
1 - Diluted Earnings per Share is calculated before exceptionals
and LTIP
"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
Cenkos Securities plc Tel: 0207 397 8900
Bobbie Hilliam
Alma PR Tel: 0203 865 9667
Rebecca Sanders-Hewett designgroup@almapr.com
Susie Hudson
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTSFFEFIFASEEF
(END) Dow Jones Newswires
January 16, 2018 02:00 ET (07:00 GMT)
Ig Design (LSE:IGR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ig Design (LSE:IGR)
Historical Stock Chart
From Apr 2023 to Apr 2024