IG Design Group PLC Trading Update (6965N)
22 January 2019 - 6:00PM
UK Regulatory
TIDMIGR
RNS Number : 6965N
IG Design Group PLC
22 January 2019
22 January 2019
IG Design Group PLC
(the "Company", the "Group" or "Design Group")
Trading Update
Strong Christmas trading with earnings per share(1) on track for
substantial year-on-year growth
IG Design Group plc, one of the world's leading designers,
innovators and manufacturers of gift packaging, greetings,
stationery, creative play products and giftware, is pleased to
announce its trading update for the nine month period to 31
December 2018.
The Group continued to deliver a strong performance with
reported revenues for the nine months to 31 December 2018 up 36%,
with like-for-like sales up 9%(2) . The Group has seen growth in
reported revenue and profit across all regions, with non-UK based
customer revenues now accounting for over 70% of the Group.
The integration of Impact Innovations ("Impact"), acquired in
August 2018, is progressing ahead of expectations and on schedule
to deliver the anticipated US$5 million of annual synergies by the
end of FY21. The US manufacturing operations are now fully
consolidated and the proposed sale of the Midway site, as announced
at the Group's interim results on 27 November 2018, has now been
completed ahead of schedule with gross proceeds of $7 million.
The Board is pleased to confirm that the Group's full year
performance remains on track to deliver diluted earnings per
share(1) in line with current market expectations, with
year-on-year growth expected to be in excess of 20%. We continue to
see strong cash conversion across the Group and expect average
leverage(3) for FY19 to follow the progress made in recent years
and be below 1.3 times.
Looking forward to the year ahead, we have a strong committed
order book and pipeline of contracts in negotiation, with a number
already secured for FY20. Our UK based Not for Resale bags business
continues to grow ahead of expectations with the order book now
consisting of over 30 million bags, including having won a number
of contracts with new retail brands. In addition, we have already
secured new business in everyday cards in the UK, renewed card
contracts in Australia and have concluded new licensing deals
including Disney's Frozen 2 and Toy Story 4 in the UK and
Australia.
Paul Fineman, Chief Executive said:
"The performance of the Group throughout this period has been
strong with all regions growing both revenue and profit,
underpinning significant year on year growth. The acquisition of
Impact has delivered everything we expected with the integration
ahead of schedule and planned synergies remain on track.
"Continued delivery against our strategy means we confidently
enter FY20 with good overall momentum, across our diversified Group
including further benefits from the integration of the Impact
acquisition in the US."
1 - Diluted Earnings per Share is calculated before exceptional
items and LTIP charges.
2 - Excluding the effect from the acquisition of Impact
Innovations ('Impact') which was completed on 31 August 2018.
3 - Calculated as the twelve month average net debt divided by
the last twelve months EBITDA before exceptional items and LTIP
charges as at 31 March 2019
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
Canaccord Genuity Limited (NOMAD and Broker) Tel: 020 7523 8000
Bobbie Hilliam - NOMAD
Alex Aylen - Sales
Alma PR Tel: 020 3405 0205
Rebecca Sanders-Hewett designgroup@almapr.com
Susie Hudson
Sam Modlin
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END
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