Ig Design Share Discussion Threads

[arthur_lame_stocks] 02/6/2025 12:33:39

I sold out this morning because I made 50% in a few weeks and partly because I think a recovery is 2 years away and there will be another chance to buy in when this years results come in which are going to look truly awful.

That said I think their lenders will remain supportive and there is the possibility of significant cash coming back from the disposal and a price of at least £1.50 is achievable in a couple of years time.

[volsung] 02/6/2025 08:54:48

Ghis is on a pe of 2.7
With the US lossmaker gone should rise to at least 6
150p fair value?

[value hound] 31/5/2025 20:36:35

The last time I tried a valuation, I came out around an optimistic £2 a share (c.£190m mkt cap) BUT that presumed a gradual recovery in the U.S business, so I need to get my calculator out now!

In the meantime, here's a broker note I just read...

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IG Design Group has announced the disposal of its US subsidiary, DG Americas (DGA), to a special purpose vehicle set up by Hilco Capital. The nominal $1 sale price represents a clean break ahead of the peak seasonal working capital with no ongoing recourse to the group, but with the upside optionality of 75% of any post sale (relevant) proceeds. We regard this as a timely and elegant exit from a business buffeted by many external factors, not least the evolving tariff situation. In the face of increasing profit and cash pressures, this protects shareholders from further downside risk.

DGA disposal − a rapid response to untenable pressures. An exit from DGA was trailed as the probable strategic option at the group’s post-close trading update on 30 April. Today’s announcement addresses how this has been achieved with a view to achieving the best possible outturn for the group and its shareholders. The nominal upfront payment sees the group assign to Hilco any receivables owed by DGA to the group, with there being importantly no ongoing recourse on the group. IG Design Group retains upside optionality however, as it will receive 75% of any future proceeds from the sale of DGA or realisation of its assets by Hilco, with Hilco receiving 25%. These returns are net of monies utilised by Hilco to provide working capital to DGA. Technically, Hilco is under no obligation to sell, thus total group receipts might not exceed the initial nominal upfront cash payment. ▪ Financing arrangements − new three-year agreement to follow. The existing US receivables backed asset-based lending (ABL) facility will be terminated upon completion of the DGA transaction. The group is in negotiation with its current lenders, which have been providing bridging finance to support working capital, for a new three-year deal, with agreement expected by the end of June.

FY25 results − later publication than usual. The disposal of DGA will delay the publication of the group’s FY25 results, with a reporting date to be announced in due course. We would then expect further guidance on future strategy for DGI alongside guidance for the FY26 financial year. The group has already flagged that the inclusion of two months of trading for DGA, along with some limited transaction costs, will adversely impact the FY26 financial results. We would expect DGA to be reported as a discontinued business within the FY26 results, enabling clearer insight into the performance of the DGI continuing business.

[mammyoko] 31/5/2025 08:59:04

Potentially another 100% upside here. EPS target for 26 possibly 20p @ 8x earnings. Obviously, anything could go wrong with the disposal but only now trading at last stated net cash.

[time 2 retire] 31/5/2025 07:20:52

Deanowls,
They probably gave it away like they have the company.
Completely stupid move.

[deanowls] 31/5/2025 02:24:01

Have they sold the warehouse?
What is now left?
Why couldn’t it have been announced in a 7am rns?

[s34icknote] 30/5/2025 22:06:25

£90 million bought for , issued 13 million shares at 6.78

[blackhorse23] 30/5/2025 19:14:54

They have bought DG group few years ago , made loss , sold with loss and next blanch sheet will disappear that revenues mean another 25% revenues down at next results ... last 2 year lost 200mRevenue

[volsung] 30/5/2025 16:22:21

This is nice

[h1a3] 01/5/2025 18:03:13

Quick look around the web.
2019 £58M for Impact Industries.
2020 88M USD for CSS.
Not sure if that is everything.

[s34icknote] 01/5/2025 15:06:20

What did they pay for dg America ?Would be interesting to see if they get any money back ?This adding to cash pile ?Or will it cost them to offload ?

[baner] 01/5/2025 08:39:06

.Absolutely in play ! Worth north of 100p with US gone and significant net cash.

[volsung] 30/4/2025 16:49:18

Not a bad day all in all
The company is cheap, has good cash reserves and a good UK business
The US was a step too far especially with the Orangeman in charge

[s34icknote] 30/4/2025 13:36:51

Some late sells this morning going through .A lot would have bailed ! Must admit it's certainly gone the opposite way you would expect !!

[volsung] 30/4/2025 11:19:35

Bought a few as a gamble
Not a bad company metric wise
Getting out of the US a good move

[h1a3] 30/4/2025 10:44:22

BH23. Rubbish.
Cash is down due to supply chain issues and so inventory up.
I believe that is a short term issue.
The banks are on board which is a positive.
Over the next 2 months I think the tariffs will be grossly reduced as Wall Street/big corporations TELL DT that there is trouble in the streets and he will be blamed.
DT will then tell the world he has negotiated a fabulous deal of low tariffs especially with China!!!
IGR closing/selling USA and concentrating on the remaining divisions will mean IGR will in time go back to over £2.

[s34icknote] 30/4/2025 10:41:29

I suppose the shackles of the American acquisition being off loaded is good news as the rest of the company is ok !And not priced in ?????This morning a missed opportunity ?

[s34icknote] 30/4/2025 10:40:07

Someone buying 10k blocks !

[blackhorse23] 30/4/2025 09:28:42

Cash burning very quick .. cash outflow 11 million this year , business very bad , making loss and using own cash to survive... called BANKRUPT company , technically yes

[time 2 retire] 30/4/2025 08:51:29

The only positives I take from that update are that the banks are on board until summer of 27 plus they still got over $80 million cash in the bank.

Market cap under £50 million!!!

[s34icknote] 30/4/2025 08:43:07

Judging by market reaction It's priced in with the trading below cash balance !!

[s34icknote] 30/4/2025 07:53:40

50p = 47 million market cap 65 million cash left , not sure if that includes recent factory sale ?Cost of exit ??? Share price today ? 40pAnother company failed to break America !! Long list of uk retailers !