Ig Design Share Discussion Threads

[time 2 retire] 24/10/2022 16:27

All of the US Xmas paper operations moved I think D1471, from midway Georgia to memphis some 650 miles, memphis is I believe where CSS Industries manufacturing is based which IGR bought out a few years back, so both companies consolidated into one. I worked in midway in 04 and it was a huge place so expect it would have cost a few quid to move the whole manufacturing site, machines and all.

[darrin1471] 24/10/2022 16:07

T2T. Do you know what parts of the business moved ? Would they have installed new machines in Tennessee?
If IGR were making big profits in usd then it would be a big positive. Balancing usd sales vs in other currencies and materials in usd and hedging the dollar probably makes no difference this year. May be a positive in the outlook if they forecast profits next year in usd.

[time 2 retire] 24/10/2022 15:31

Not one article I've read since last weeks TU has mentioned last years move from Georgia to Tennessee! This would have cost millions plus caused lots of production disruption I would guess but will eventually result in $5 million per annum in savings.
Plus nowt mentioned in the strength of the $ to the £ which will aid our bottom line.
I hope IGRs troubles are behind them and we'll start to rebuild from next year.
Gla.

[z1co] 23/10/2022 10:46

Nice write up by Tracey Bearton:



IG Design’s cracking summer
By Tracey Bearton
21 October 2022

Pulled-forward seasonal orders give group ‘significantly improved’ profits and cash flow


Early seasonal orders have helped greeting card, giftwrap and cracker giant IG Design Group pull in more money than expected over the summer.

With retailers pulling forward their seasonal orders to avoid a repeat of last year’s supply-chain issues, IG Design Group reported “strong trading” between April and September when it released its trading update yesterday, 20 October.

The statement added: “As a result, the group’s sales, profits, margins and cash flow are expected to be significantly improved on the same period last year, and also ahead of the board’s expectation for the period.”

The main sales driver was cited as supermarkets and shops placing orders for crackers, wrapping paper and greeting cards earlier than usual. Last year was blighted by Covid-related factory closures in Asia and a shortage of cargo ships, which hit deliveries.

IG Design is the world’s largest producer of celebrations products, including greeting cards, wrap, Christmas crackers, gift bags and partyware, with its main UK factory in Wales and head office in Newport Pagnell, alongside operations in the Americas, Netherlands, Australia, and Asia.

Following the surprise departure due to personal reasons of long-time ceo Paul Fineman on 1 March with just a week’s notice after 17 years with the business, Lance Burn is now leading the group on a day-to-day basis as chief operating officer.

The statement added: “This performance reflects the strong relationships that have been sustained with customers and the ongoing demand for the group’s products. Given the bring-forward of orders during this period, the Board believes the trading results for the full year to 31 March 2023 will have a strong first half weighting, but overall will remain in line with the Board’s expectations for the year as a whole. This represents a small year-on-year improvement in profits compared to the prior financial year.”

Full-year profits are likely to stay around the £3.87million ($4.3m) previously suggested, up on last year’s £3.42m ($3.8m), and further details on performance, along with an updated outlook, will be set out with the period’s results which will be published on 30 November.

Top: IG Design is the world’s biggest producer of celebrations products

[z1co] 21/10/2022 17:30

Funds are also buying which bodes well for further upside.
571,060 shares bought at 87.1076p.

[z1co] 21/10/2022 09:13

From the trading statement we know that the company has traded strongly and ahead of board's expectation for the six months to 30 September.

Revenue for H1 will see a significant improvement over last years H1 of $483.9m.

Profits,margins and cash flow will show a significant improvement over last years H1.

The main reason for this performance is that many customers have brought forward their seasonal ordering so as to avoid the supply chain challenges experienced in the second half of calendar year 2021.

We will get more information regarding the current trading for October and November at the time of their Interim results on 30/11/2022.

The company has stated yesterday that trading for the full year to 31/03/2023 will be in line with expectations.

They might even trade slightly better than expectations during the H2.

Revenue, profits, margins and cash flow will all show an improvement over last year.

Full year revenue will be close to $1 billion.

Valued at only £84m.

[wall street trader] 20/10/2022 13:47

added more today holding for the long term

[darrin1471] 20/10/2022 12:50

"the Board believes the trading results for the full year to 31 March 2023 will have a strong first half weighting, but overall will remain in line with the Board's expectations for the year as a whole. This represents a small year-on-year improvement in profits compared to the prior financial year."

We know IGR have good visibility on orders, so an update on margin recovery via Nov 30th webinar presentation will probably determine the speed of the share price recovery.

No news on a COO appointment, so Lance may get the job permanently if he can show he is turning around the Americas.

[z1co] 20/10/2022 11:34

Group's sales, profits, margins and cash flow are expected to be significantly improved on the same period last year, and also ahead of the Board's expectation for the period.

Last years interim figures:

Financial Highlights +++++++++++++++ H1 2022

Revenue +++++++++++++++++++++++ $483.9m

Adjusted*
- Profit Before Tax ++++++++++++++++ $19.9m

- Diluted Earnings per Share ++++ ++++ 13.6 cents

Reported
- Profit Before Tax ++++++++++++++++ $18.9m

- Diluted Earnings per Share ++++++++ 12.3 cents


Interim Dividend +++++++++++++++++ 1.25 pence

Last years revenue for 6 months to 30/09/2021 was $483.9m and pbt was $19.9m this years revenue for 6 months could well be around $500m and on improved margins pbt will be significantly higher than last years.

Valued at only £84m.

[z1co] 20/10/2022 10:31

One should never fight the market. If the trading update was not good MM's would have marked the share price down by a similar amount.

[darrin1471] 20/10/2022 10:06

Bubloo. If you have done your research on IGR then I would be interested to hear why you think a share still 90% off its highs has further to fall?

[bubloo] 20/10/2022 09:36

I like the fact market has misread it. gives me a opportunity to go short and make a few quid

[z1co] 20/10/2022 08:47

The market does not seem to agree with you the share price is UP by 10%.

[bubloo] 20/10/2022 08:42

no change expected in full year results. it looks like second half sales being brought forward. I think they will have a miserable 2nd half.

[z1co] 20/10/2022 08:34

Excellent trading update this morning:

Both of the Group's divisions, DG Americas and DG International, experienced strong trading over the period. As a result, the Group's sales, profits, margins and cash flow are expected to be significantly improved on the same period last year, and also ahead of the Board's expectation for the period.

[se81] 20/10/2022 07:24

Turnaround looks like it’s starting to take shape here. Think that RNS is fairly positive. The input cost inflation that m’ment referred quite specifically to during FY results presentations has started to ease so potentially that’s an “at least in line” statement? (consumer sentiment more difficult to predict!)

[darrin1471] 13/10/2022 15:13

Held SCS pre GFC. Made good money. From memory they had little or no debt going into GFC but went into administration within months and were bought by private equity.

[davidosh] 12/10/2022 23:17

For those keen on dividends....it is a whopping 14% yield at SNWS and 11% at SCS with neither company at risk of not paying into the future. SCS has net cash in excess of the market cap.

[hamhamham1] 05/10/2022 07:57

All will be fine IMO, just a chance to get a bite at low prices again.

[fegger] 22/9/2022 13:55

This must be another share that will benefit from US dollar strength (when figures converted to sterling). For the fiscal year ended 31 March 2022 the total revenues were $965 million. Of that $659 million was from the Americas segment ie 68%. Of course they do need to post an overall profit this time!

[hamhamham1] 22/9/2022 13:27

And never as good as the NWG divi I got today.

[mustau] 20/9/2022 09:43

Can’t be as lovely as tga??