Ig Design Share Discussion Threads

[davebowler] 02/12/2015 09:30

Edison;
nternational Greetings (IGR) has delivered a good set of interims, notable particularly for the improving US performance and further progress in bringing down debt. The order book underpins expected growth for the remainder of the financial year and is on track for FY17. The group’s investment in its manufacturing facilities is delivering targeted production efficiencies and bolstering its positioning as a leader in compliant supply-chain. Following strong performance over the last few months, the share price is now reflecting the underlying improvements being made.

For what is (despite the share price performance) still a relatively modest UK enterprise, IGR has a
wide geographic reach. The UK and Northern Europe are ‘home’ markets, as is the US, albeit that
market share still leaves a huge opportunity to grasp. With companies such as Ikea, Lidl, Aldi,
Action, Netto and Auchan now all on the client list, growing market share in other countries across
Europe should follow. The group’s Australian joint venture has also seen an improvement in trading
following a rather torrid period.
There is also an expanding opportunity to build business with the large online retailers for their giftwrapped
delivery options, as well as a direct sales channel

[daz] 02/12/2015 09:29

A dip was to be expected after the strong run up ahead of the results but it will be interesting to see what the forecasts for 2016/2017 look like after these results.
If you pencil in a conservative 15% for next year, then you get earnings of around 16p, which puts the shares on a miserly forward p/e of 11, with a lot of scope to beat that as the US investment will start to contribute.
Furthermore the year 2016/2017 starts in only 4 months time, so at some point markets will start to look forward.

I don't expect the dip to last long.

[imranawan] 02/12/2015 08:24

Daz - that's the rough EPS I calculated based on the growth rate in H1.

[daz] 02/12/2015 07:53

That's the way I see it LG. Although I was using fully diluted adjusted earnings per share. 10.7p in earnings last year split 4.8/5.9, so if they maintain 30% grwoth, then they are on course for around 14p as you say.

[lord gnome] 02/12/2015 07:25

A good set of numbers which offer the promise of a lot more to come. It will be interesting to see how the market reacts.
Some back of envelope calculations using basic fully diluted EPS. Last year the company did 3.4p in H1, this year 6p. In the second half last year they did 5.9p giving a total for the year of 9.3p. If they do, say, (pluck figure out of thin air) 8p in H2 this year, then the total for the year would be 14p giving a fwd PE of just 13. For a company growing rapidly with lots to look forward to, that's still bordering on cheap. Hopefully the market will also see it this way.

[time 2 retire] 02/12/2015 07:18

There's not a lot i can see wrong with that set of results...

Onwards and upwards for IGR...

[30rock] 01/12/2015 16:13

The US high speed wrap plant comes online in 2016, and both the Aus Dollar & Euro exchange rate dropped by +10% against the GBP for the past 12 months. I reckon the positive news has been factor in the price in recent months. I see a correction coming, but the trade update after this will be one to watch. Gd luck all!

[robo21] 01/12/2015 15:45

My money is on the pop !!!

[30rock] 01/12/2015 15:43

Will it be a 15% Pop or 30% Drop tomorrow?

[time 2 retire] 01/12/2015 14:42

ITV cameras are on site in Wales tomorrow so must be something good coming out in the Results for them to report.

I'll keep you all posted.

[lord gnome] 30/11/2015 10:16

Point taken, t2r, but I always expect volume to move the price.

[time 2 retire] 30/11/2015 10:04

Its not always the quantity but sometimes the frequency that gets a share price moving LordG-7 buys without a tick up is the point i'm trying to make, it would be nice to keep momentum going into Wednesday's results

[lord gnome] 30/11/2015 09:37

Hardly 'they' t2r. Level 2 shows just Peel Hunt on the offer at 186. They have 'soaked up' buys totaling just 6567 shares so far today, so I wouldn't expect much movement on that turnover. Their NMS is just 2,500 shares, however, so any decent buy should get them on the move.

[time 2 retire] 30/11/2015 09:33

And now they're holding the price at 186p!!!

[time 2 retire] 26/11/2015 08:50

MM's seem happy to hold this at 183p for some reason!

Ooops, i may have posted a bit early just then-we're on the move again!

[celeritas] 24/11/2015 10:21

Hell of a spike, could do with consolidating.

[daz] 23/11/2015 18:51

It really looks like there are no sellers at the moment with holders content to sit on their stock for the next few years, as IGR reap the benefit of their investments in production while at the same time growing the top line through a mixture of an improving world economy and further partnerships.

[robo21] 23/11/2015 11:37

Strong buying up to results.

[time 2 retire] 22/11/2015 22:35

Thanks Jeff H.

I can see the new Star Wars franchise being massive for us next year.

[jeff h] 22/11/2015 21:39

t2r re your Shares mag query. The writer believed IGR would benefit from the licences they have especially with Xmas looming and having Disney licences etc.

[time 2 retire] 22/11/2015 08:00

Gervais Williams still hot on this share, this was obviously written before last weeks little surge though...

hxxp://www.trustnet.com/News/635488/gervais-williams-the-hidden-gem-stocks-i-expect-to-flourish/2/1/
(page 2 of 3)

Gervais Williams: The ‘hidden gem’ stocks I expect to flourish.

International Greetings

International Greetings has been a firm favourite of William’s for a while, and is held in both the Miton UK Multi-Cap Income and Miton UK Smaller Companies funds.

It is one of the world’s leading designers, manufacturers, distributors and importers of gift packaging, and is only £87m in size.

“This is a bit of a favourite of ours – their operations stretch across UK, Europe, Australia and the US. This is a manufacturing company largely, and this is a company that has been investing for its productivity improvement, it’s had 10m Capex,” Williams explained.

“You could have bought this company at the beginning of the year for £40m, and as that cash-flow has increased it’s getting the extra sales, net margins are actually rising, and they’re seeing an improvement in share price.”

International Greetings recently reported to shareholders that it has seen an increase in customers and it has generated more cash than expected, which means it has been able to pay a dividend this year as opposed to next year as initially planned.

Since the start of the year, the company has returned 102.77 per cent, outperforming its FTSE AIM All Share index by more than 18 times.

The share price has doubled and it’s announced it’s going to invest another £10m in the US. What we’re really saying is, if you follow those companies that are not just investing capital but getting cash payback, that cash payback then allows them to build up cash or pay off debt, but ultimately generate cash which is going to pay dividends. It’s an example of a company that is doing exactly what we want,” Williams said.

International Greetings has a P/E ratio of 15.57, and a P/B ratio of 1.4. Its share price is currently 153.5p.

[celeritas] 20/11/2015 16:21

Tell me about it.

[psolomons] 20/11/2015 14:58

The shares are so tightly held that any demand leads to these significant rises.

[daz] 20/11/2015 13:01

Yes, starting to look very good, perhaps they are trading ahead of expectations.

[time 2 retire] 20/11/2015 11:58

A cracking few weeks ps, and still 7 trading days before the half yearly's so hopefully a bit more to come.