Ig Design Share Discussion Threads

[jeff h] 29/8/2019 08:22

Progressive Equity also produced a report yesterday:-

"Design Group’s trading update confirms continued progress across its three strategic drivers with both revenue and profit showing strong year on year growth. This positive momentum reflects a combination of underlying organic growth and the full year effect of the Impact acquisition in the US last August, along with its successful integration with existing operations. Order book and production volumes are both ahead of last year and in line with company expectations. Our forecasts remain unchanged at this stage, albeit with potential upside to FY21E from a successful cross selling initiative with a US retailer....."

[rivaldo] 29/8/2019 06:47

Berenberg say Buy:



"IG Design a ‘multi-year winner’, says Berenberg

Berenberg analyst Owen Shirley believes greeting cards business IG Design Group (IGR) is a ‘multi-year winner’ thanks to its consolidation of the global gifting market.

He maintains a ‘buy’ recommendation on the stock and a target price of 680p. The shares were trading at 591p yesterday.

A trading update from IG revealed progress across a number of its strategic priorities.

‘Most notably, the company is scaling the US gifting business, capturing the UK paper bag opportunity and continuing to improve its balance sheet strength, which should provide further firepower for accretive mergers and acquisitions,’ said Shirley.

The takeover of Impact Innovations in August 2018 has helped with plans for scaling up its US business, along with an ultra high-speed printing press which is being installed in Memphis in November. IG also agreed a distribution deal with one of the US’s largest retailers for its 1,500 stores nationwide.

In the UK, it invested in its first paper bag manufacturing line at a factory in South Wales. Its ‘printing and design expertise combined with its operational capabilities, have helped it to gain significant traction in a market that remains relatively nascent, following the ban on free plastic bags in the UK in late 2015’ said Shirley.

Demand has been so significant that a second manufacturing line is to launch in the second half of the year and consideration for further investment is already underway."

[rivaldo] 28/8/2019 07:23

Yet another excellent trading update - can't ask for more:



Crucially, Xmas supplu must have gone/be going extremely well to enable the CEO to say

"The momentum throughout the business continues apace alongside good forward visibility of our order book going into the remainder of the year".

And all of this bodes very well too:

"including the success of combined teams within the US recently reaching agreement with one of the US's largest retailers for the supply of all year round themed and seasonal 'Impulse' gifting products, to over 1500 stores nationwide. This new agreement is expected to generate significant incremental revenues in FY21 and beyond. Further growth opportunities within the Food and Drug retail channel have also been secured, reflecting focus on great value 'Impulse' gifting products.

In the UK, the Company has secured a number of new character licenses across the Gift Packaging categories which represent excellent additions to the broad existing portfolio. The Directors are also greatly encouraged with the enthusiastic response to FY20 key licensed product launches, including Frozen 2 and Toy Story 4."

[time 2 retire] 15/8/2019 14:27

Good news for Walmart today, probably IGRs biggest customer.

[boonboon] 13/8/2019 18:57

Quite a few well know retailers using the bags. Joules, jd sports, Black's, Schuch and new look amongst others. Could become a substantial business.

[jeff h] 13/8/2019 14:13

A couple of stories whilst we await updates:-

[time 2 retire] 09/8/2019 15:30

It's nice to see octopus still adding to its holding.

About time we had the next break out....

[earwacks] 18/7/2019 21:07

If the target is £8.00 hardly seems worth hanging around for a drop of a few more pence. Seems more like a pause for breath.

[discodave4] 08/7/2019 18:46

Around 570 will do me.

[jimbojet17] 08/7/2019 08:42

This is such a great long term investment. There aren't many safer returns in UK small cap IMO

[gswredland] 08/7/2019 08:38

IGR always seems to do this. Good results and then falls away...
Would love a drop to 550 - who knows!

[shanklin] 27/6/2019 15:37

Tomps2

Just finished watching the piworld FY19 results presentation.

It contained a lot of stuff which was news to me. Time well spent IMHO.

Cheers, Martin

[time 2 retire] 18/6/2019 16:46

Video of our new bag facility down in South Wales, it's a big future growth area and got another 2 machines planned.

hxxps://www.igdesigngroup.uk/2019/05/28/paper-twist-carrier-bags-from-design-group-uk/

[time 2 retire] 17/6/2019 10:15

I hope Paul Fineman never retires, the guy is class, a very knowledgeably and interesting 54 min watch. More to come for IGR.

[tomps2] 17/6/2019 08:05

IG Design Group FY19 results presentation by CEO&CFO



Very strong. Future KPI's incl EBITDA +10%; cash conversion 75% ROCE +24%

[steve3sandal] 13/6/2019 19:14

I like everything except the Nil paid options again cashed in upon vesting and the company still adjusting(inflating) earnings presentations in the hope we don’t notice the word adjusted in front of earnings. I’m holding my nose whilst holding my nose. It’s a damn cost. I think I git tha5 from Warren.

[rivaldo] 13/6/2019 14:24

Possibly - great to see new highs anyway.

[gswredland] 13/6/2019 11:16

Perhaps there was an overhang here and now gone?

[rivaldo] 12/6/2019 10:24

800p would be nice....

Progressive Equity have a new report out today. They note that their March'19 forecasts were beaten, and retain their 31.5p EPS forecast for this year with 34.5p EPS for next year:

Extract:

"A successful and Impact-ful year
Further progress on all target metrics

Design Group has delivered another record year of revenue and profits, beating our
forecasts, aided by the strategically transformative acquisition of Impact Innovations Inc in the US. Group revenues advanced 37% including very strong underlying organic growth of 9.8%. Adjusted operating profit rose 41% to £32.6m, ahead of our forecast, with a 20bps increase in adjusted operating margin to
7.3%. With adjusted EPS rising 33% to 29.3p, the 50% increase in final dividend, ahead of our forecast 33% rise, delivers a full year dividend increase of 42% to 8.5p. With its well-defined strategy and clear route map to deliver its shareholder commitments, Design Group is well positioned to increase market share and mitigate external challenges."

[pugugly] 11/6/2019 12:24

Canaccord target retained at 800p this morning.

[rivaldo] 11/6/2019 12:14

Berenberg increase their target to 680p (from 640p) and say Buy:

[jeff h] 11/6/2019 10:10

Watch: Paul Fineman and Giles Willits Discuss 2019 Full Year Results

[jimbojet17] 11/6/2019 09:12

Relatively new to IGR but bought more last week expecting an up tick today. Delighted with the results and even more so that the stock hasn't spiked on the report. I'll hoover up some more happily. GLAH

[jeff h] 11/6/2019 08:22

I like this bit:-

· a progressive dividend policy targeting dividend cover of 2.5 times earnings per share in the near future - in 2019, dividend cover reduced to 3.4 times

...I would think adjusted EPS for the current year would be over 33p so a dividend of about 13.5p possible.

[time 2 retire] 11/6/2019 07:38

Hi Rivaldo, thanks, I did just check and it was indeed 2.5p but for some reason in my little book that I keep a check on things I'd pencilled in 2.25p.

Brilliant results all around. Cheers