IG Design Reports Revenue Decline, Anticipates Recovery in Second Half

LONDON - The leading supplier of design-led gift packaging and celebration products, IG Design Group PLC, announced a post-close trading update indicating an 11% decline in group revenue for the six-month period ending on September 30, 2024. This decrease, primarily stemming from the DG Americas division, has resulted in a 62% drop in adjusted profit for the first half (H1) compared to the same period last year.

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

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

Looking ahead, IG Design's Board of Directors indicates that the revised expectations established during the last General Meeting should align with the full-year results ending March 31, 2025. The company aims to return to pre-pandemic operational margins of at least 4.5% by the end of the fiscal year 2025, suggesting a year-on-year improvement in both profit and cash flow compared to the previous fiscal year.

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