IG Design sees 'significant growth' in profits

25th Oct 2023 08:16

(Sharecast News) - Stationery and gifts manufacturer IG Design Group said on Wednesday that it had seen "significant growth" in both profit and margins in the six months ended 30 September.

IG Design said it had continued to make "good progress" on improving operational efficiency and simplifying the business, resulting in "significant growth" in profits and margins year-on-year.

In addition, IG said that net debt was "significantly lower" than a year ago, reflecting strong cash flow.

The London-listed group said it had seen a return toward normal ordering seasonality following disruption to international supply chains in recent years, meaning that some sales had returned to being in the second half of the financial year.

Alongside this, IG noted that it had also seen lower consumer demand for everyday products in some markets and reduced order quantities guided by lower customer expectations of the forthcoming Christmas season. Consequently, the group delivered lower sales versus the same period last year.

However, IG said its full-year trading results will still be in line with internal expectations, representing a "strong year-on-year improvement in profit and cash flow".

"It demonstrates continued delivery of the board's aspiration to return the group to pre-pandemic operating margins by the end of FY2025," said IG.

As of 0900 BST, IG Design shares had shot up 13.48% to 127.66p.

Reporting by Iain Gilbert at Sharecast.com