TIDMIGR
RNS Number : 6796M
IG Design Group PLC
25 January 2021
25 January 2021
IG Design Group plc
("Design Group", the "Company" or the "Group")
Trading Update
IG Design Group plc, one of the world's leading designers,
innovators and manufacturers of celebrations, craft, gifting,
stationery and creative play products, today issues a trading
update for the nine month period ended 31 December 2020.
Trading update
The Group's trading in the period delivered a 35% year on year
increase in reported revenue to approximately $737 million
(including $242 million from CSS Industries Inc. ('CSS')). These
results reflect good growth in the Americas as a result of the CSS
acquisition and a better than expected performance in
International, particularly in Europe. Group revenues excluding CSS
were 9.2% down year on year reflecting the impact of Covid-19
across the Group, with proforma CSS revenues in the period down
year on year a similar amount.
The continued focus on cost management across the Group, and the
ongoing realisation of synergies from the CSS acquisition,
alongside the inclusion of CSS results for the first time in the
nine month period to 31 December 2020, have driven an increase in
the Group's Adjusted profit before tax compared to the same period
in the prior year, with both Americas and International continuing
to deliver year on year profit growth.
The Group has continued to deliver a year on year reduction in
net debt, which as at 31 December 2020 stood at $26.3 million,
compared to $69.1 million in the prior year. This strong
performance continues to reflect the focus on cash management
during the period, particularly in all aspects of working capital.
The Group expects to report average leverage for the full year 2021
below 0.5x Adjusted EBITDA.
Across all our regions retail customers have reported very
strong sell-through rates over the festive period. Sales of all
Christmas product categories have performed well, with particular
best sellers including gift wrap, Christmas Décor and creative
play. This has ensured minimal inventory overhang going into the
start of the ordering process for Christmas 2021. Everyday sales
have also continued to remain robust, particularly in the Craft and
creative play categories in the US, while we are also seeing
stronger performances from our enlarged e-commerce based activities
with further developments expected in the new financial year.
Product design and innovation continue to focus on developing
sustainable product lines following the success of our eco nature
range at Christmas.
Despite various restrictions tightening in several locations
globally, all our regional businesses and manufacturing operations
have remained open, maintaining their focus on working closely with
our customers to maximise trading opportunities. Furthermore,
following the end of the Brexit transition period we have not
experienced any significant disruption to our operations.
The integration of CSS continues to progress well and to deliver
synergy savings ahead of schedule. In addition, the fully
integrated management team's focus on its programme of priorities
is developing further sales opportunities and cost savings ahead of
original estimates.
The Group continues to note the effect of Covid-19 and in
particular, the impact of the current lockdowns around the world.
Whilst demand for the Group's product offering remains robust, the
ongoing restrictions, together with associated macro-economic
challenges, create ongoing uncertainty. For this reason, whilst the
Board notes that performance in the nine months to 31 December 2020
has been stronger than expected, the full year outlook remains in
line with current market expectations. A further update will be
provided as part of the post-close trading update in April.
For further information, please contact:
IG Design Group plc Tel: 0152 588
7310
Paul Fineman, Chief Executive Officer
Giles Willits, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser Tel: 0207 523
and Broker) 8000
Bobbie Hilliam, NOMAD
Georgina McCooke
Alex Aylen - Sales
Alma PR Tel: 0203 405
0205
Rebecca Sanders-Hewett
Susie Hudson
Sam Modlin
About IG Design Group plc
IG Design Group plc, the largest consumer gift packaging
business in the world, is a designer, innovator and manufacturer of
products that help people celebrate life's special occasions.
Design Group works with more than 11,000 customers in over 80
countries throughout the UK, Europe, Australia and the USA.
Its products are found in over 210,000 retail outlets, including
several of the world's biggest retailers, for example Walmart,
Target, Amazon, Costco, Lidl and Aldi. Its brand, Tom Smith, also
holds the Royal Warrant for the supply of Christmas crackers and
Christmas wrapping paper to the Royal family. Design Group is a
diverse business operating across multiple regions, categories,
seasons and brands.
Its five major product categories are: Celebrations, Gifting,
Craft& creative play, Stationery and 'Not-for-resale'
consumables. It offers customers a full end-to-end service from
design through to distribution, offering both branded and bespoke
products from the value-focused through to the higher-margin ends
of the market.
The Company was admitted to the Alternative Investment Market of
the London Stock Exchange in 1995 under the name 'International
Greetings plc' and rebranded to IG Design Group plc in 2016. For
further information please visit www.thedesigngroup.com.
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