Ig Design Share Discussion Threads

[time 2 retire] 04/11/2019 16:12

I couldn't resist taking a bit of profit today after this nice consistent little rise so I sold a few I bought at 45p way back in 2008.
I'm confident we're still onto a good thing here with IGR and there's more climbing to come in the weeks, months and years.
GLA

[grantley] 01/11/2019 16:40

Strange closing UT trade of 660 - if anyone understands what that may be about, other than Mondays opening is likely to (falsely) look like the share price is well down.

[rivaldo] 31/10/2019 22:57

Evidently so are the markets t2e :o))

The lovely strong finish bodes well.

[time 2 retire] 31/10/2019 17:22

Another new high 😊. I'm looking forward to the results in a few weeks.

[rivaldo] 18/10/2019 23:35

Good to see IGR attracting attention - but behind a paywall unfortunately.

[time 2 retire] 18/10/2019 07:46

"Buy" tip from yesterdays Investors Chronicle....

IG Design’s (IGR) latest trading statement this morning reassures that the group is on track for full-year market expectations - which currently predict an adjusted EPS of 31.6p, up from 28.3p last year, according to Bloomberg. The order book is strong going into the second half and leverage is expected to fall to around 1.1 times by the full year. Buy.

[shanklin] 18/10/2019 07:37

Thank you rivaldo

[rivaldo] 18/10/2019 07:35

Hi Shanklin. No idea about Canaccord's forecasts I'm afraid.

Progressive Equity Research have this morning issued a new note - they've left their numbers unchanged for the moment, presumably because it's too early in the year to do so. They conclude very bullishly as follows:



"Reaping the rewards: This H1 performance is testament to the group’s clear strategic focus, built on leveraging its core strengths and grasping market opportunities. Despite topical challenges including Brexit, trade tariffs and lower global economic growth rates, the group’s focus on its three key strategic drivers (working with winners, design & innovation, efficiency & scale) has continued to deliver strong growth, which is set to continue in FY20E and beyond. The group’s geographic diversification spreads and reduces commercial risk, and its policy of working with winners mitigates downside risk in those local markets facing structural and economic challenges. Given this unerring strategic focus, an active acquisition pipeline, and with the cross-selling opportunities and benefits from the Impact acquisition yet to be fully realised, the outlook for FY21E and beyond is for continued strong growth and market share gains."

[shanklin] 18/10/2019 07:16

Hi rivaldo

Any idea please as to whether Canaccord also upped their forecasts. I find it quite difficult to believe IGR will only meet FY expectations.

Thank you, Martin

[rivaldo] 17/10/2019 22:53

Nice finish - looks like new highs.

Cheers Pug. Here's confirmation of Canaccord's Buy recommendation and 800p target:

[pugugly] 17/10/2019 09:04

Canaccord target price now 800p - Would be nice if achieved.

[rivaldo] 17/10/2019 07:09

Excellent H1 update - as confident as usual, with a "strong performance" and already able to state they're confident of meeting expectations given the high order book.

And there's "an active pipeline of acquisition opportunities throughout all regions"....

[time 2 retire] 12/10/2019 07:11

We could be getting the H1 trading update next week, was on Oct 16th last year...

[rivaldo] 10/10/2019 07:32

Berenberg today reiterate their Buy and 680p target:

[time 2 retire] 03/10/2019 23:29

IC tip in full..

If broker forecasts are to be believed, IG Design (IGR) will have nearly trebled underlying EPS over five years by the time it finishes its current financial year to the end of March 2020. We think a US acquisition a year ago provides the potential for the group to build on this impressive performance.
IG Design develops and sells gift packaging, cards and stationery, as well as creative play products. It has operations in 80 countries, but following a recent acquisition the US is by far its largest geography, generating half its sales last year, or 68 per cent factoring in a full year from its August 2018 stateside acquisition.

By virtue of being in the gifting market, trading is skewed heavily towards Christmas, where it makes 56 per cent of its sales. Debt also surges around this time; a noteworthy risk.

The group has “end-to-end221; capabilities to design, manufacture and distribute its products. Products manufactured in-house account for roughly 30 per cent of sales. However, it is still vulnerable to shifts in raw materials prices, Brexit uncertainty and US-China trade tensions. Control of the whole process has contributed sustained margin improvements over recent years (see chart). Meanwhile, the “working with the winners” strategy has propelled sales growth. In 2019, IG's top 10 clients accounted for 48 per cent of sales, from 39 per cent the year before. Organic sales growth for the year was 9.8 per cent, while underlying operating margins rose from 7.1 to 7.3 per cent and return on capital employed (excluding intangibles and cash) climbed from 22.5 to 24.3 per cent.The group's adjusted cash profit to average net debt – the so-called leverage ratio – also continued its downward trend, despite last year's acquisition spending.

Key to sustaining the trends shown in our chart will be the long-term success of last August's £82.2m acquisition of Impact Innovations. Last year, IG took £8.2m of exceptional costs associated with the deal, including restructuring charges that should help set in train expected annual cost savings of $5m (£4.1m) within three years. More importantly, Impact introduces important customers to IG including big US retailers such as Target and Walmart – the latter will account for around a fifth of group revenues.

IC view.

IG Design has grown rapidly in recent years, and its focus on big-ticket customers looks to be paying off already. Any acquisition carries integration risk, and with a deal as big as Impact this should not be ignored. However, IG has gained an important foothold with big US players and we take comfort from management’s solid track record. We think 18 times forward earnings is a price worth paying for the group's recharged growth prospects. Buy.

Last IC View: Hold, 600p, 11 Jun 2019

[rivaldo] 03/10/2019 22:54

Good news, thx Jeff H.

[time 2 retire] 03/10/2019 17:42

Jeff H, great stuff, cheers.

[jeff h] 03/10/2019 17:30

IC Tip of the Week - paper copy of the IC delivered tomorrow.

[rivaldo] 16/9/2019 06:44

Nice...



"IG Design (IGRI)

Who’s trading? Citywire AA-rated Roland Arnold

The trade: BlackRock’s UK small cap expert ramped up his stake in in greeting card and gift wrap maker IG Design Group from 3.9% of shares to just over 5% worth £23.2 million at a price of 588p.

How have the shares performed? The stock has effectively flatlined over the past 12 months but following a strong earlier run remains 112% higher over the last three years.

What does the company say? IG Design’s programme of global expansion has created what it says is the world’s largest gift wrapping business as well as feeding into the bottom line, with adjusted profits 41% higher at £32.6 million last year. Revenue was up 37% to £448 million.

What’s the outlook? Following an expansionary phase the business has begun to share the benefits with a recent 50% increase in its final dividend lifting the full-year pay out 42% to 8.5p. The average City target price has climbed from 520p to 740p over the last year on a unanimous ‘buy’ rating."

[shanklin] 11/9/2019 10:02

Based on the recent TS, broker estimates seem very conservative IMHO.

[rivaldo] 11/9/2019 09:35

Yep, great to see Liontrust declaring with just over 5%. Hopefully they will continue buying :o))

[time 2 retire] 09/9/2019 14:42

Looks like another new major share holder just jumped on board, bought circa £24 million worth of shares....

[time 2 retire] 02/9/2019 09:10

Thanks Rivaldo, a nice read.

[rivaldo] 02/9/2019 08:50

Nice feature on Citywire this morning re Octopus' stake increase:



"IG Design (IGRI)

Who’s trading? Citywire AAA-rated Richard Power

The trade: Octopus’ micro-cap expert upped his stake in in greeting card and gift wrap maker IG Design Group from 9.2% of the shares to just over 10% worth £46 million at a share price of 589p

How have the shares performed? The stock is 146% higher over the last three years and is just off an all-time record high of 620p.

What does the company say? Power has rapidly upped his exposure as the share price has climbed this year, as an ambitious foray into North America created the world’s largest gift wrapping business and helped deliver a 37% increase in revenue. Earnings per share climbed 33% last year.

What’s the outlook? City brokers have rapidly revised their forecasts higher over the last year as overseas acquisitions helped boost organic revenue growth of almost 10%, with the median target price rising from 520p to 740p. Despite the speed of this year’s appreciation that means a further 26% rerating is predicted."