Ig Design Share Discussion Threads

[se81] 30/11/2022 07:49

Progressive Eq (paid for) research this morning

IG Design Group has delivered a strong set of interim results, as guided in October’s trading update, with adjusted PBT up 35% to $27.4m on a reported basis (+42% on a constant currency basis). This was driven by accelerated ordering of seasonal goods by retailer customers keen to de-risk their supply chains, alongside catch-up pricing and product engineering, which has delivered some gross margin recovery. While cautious on the outlook given continuing economic uncertainties, the Board has upgraded FY23E guidance to a small adjusted profit before tax (PBT).

▪ Interim results − making progress. Revenue rose 8% to $521m, with DG Americas up 7% and DG International 9% better. Adjusted gross margin saw a 40bps improvement to 16.6% from catch-up pricing and product redevelopment to mitigate the factors that depressed H2 FY22 adjusted gross margin to 9.1%. Disciplined management of operating costs helped to deliver improved profit margins at all levels, resulting in a 38% increase in adjusted diluted earnings per share to 19.6 cents. In line with previous guidance, no dividend was declared, and with ongoing economic uncertainty the Board has said the prospect of any dividend payment in FY23E is unlikely.

▪ DG Americas − initiatives bearing fruit. The improvement in H1 figures was the net result of many different factors. While the biggest positive impact came from catch-up price increases, this was closely followed by cost savings delivered from the DG Americas turnaround plan. Further to Paul Bal’s appointment as Group CEO from 1 April 2023, good progress was reported on the recruitment of a new DG Americas CEO.

▪ Strong management − of cash and working capital. The group has operated comfortably within the covenants of its amended and extended banking facilities, signed on 1 June. Despite the accelerated trading seen in H1, disciplined management of working capital levels has seen these contained below expected levels. Consequently, net debt was below expectations throughout the period, with FY23E average net debt guidance now improved to $40m from the previous $75m-$80m range.

▪ Outlook and forecasts − FY23E upgrade. The Board expects to see a continuation of a high inflationary environment and therefore remains cautious on prospects against an uncertain backdrop and weak consumer confidence. Upgraded Board guidance to a small FY23E PBT is reflected in our new forecasts, alongside an initiation of FY24E estimates.

[onjohn] 30/11/2022 07:45

No cos debt

[se81] 30/11/2022 07:44

financial results ahead of expectations, working capital and average net debt are now expected to remain below previous expectations......progress

[blackhorse23] 30/11/2022 07:38

No dividends??

[hamhamham1] 30/11/2022 07:30

You could see that today, am holding for the medium term.

[oakville] 30/11/2022 07:27

Took a few at 83p at the end of October so looking for 50% return.

[oakville] 30/11/2022 07:25

Excellent.

[hamhamham1] 30/11/2022 07:17

Financial Highlights - for 6 months - HY2023.
(previous = HY2022)

Revenue
$521.2m
$483.9m (previous)

Operating profit
$30.5m
$22.6m (previous)

Profit before tax
$27.4m
$20.3m (previous)

Diluted earnings per share
19.6c
14.2c (previous)

Reported:

Operating profit
$35.1m
$21.4m (previous)

Profit before tax
$32.0m
$18.9m (previous)

Diluted earnings per share
23.1c
12.3c (previous)

Net debt as at the period end
$73.7m
$58.8m (previous)

Half year dividend
0.0c
1.7c (previous)

[bigbigdave] 30/11/2022 07:12

Good results, look to have turned a corner.

[hamhamham1] 30/11/2022 07:11

Update RNS out.

[blackhorse23] 29/11/2022 00:16

Independent newspapers: Best cyber Monday deal at CURY (LSE) https://www.independent.co.uk/extras/indybest/black-friday/currys-black-friday-deals-cyber-monday-best-sale-2022-b2233839.html

[hamhamham1] 28/11/2022 10:56

I expect good results, they already indicated that, from recent RNS..

"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. 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. This performance reflects the strong relationships that have been sustained with customers and the ongoing demand for the Group's products."

[h1a3] 28/11/2022 10:49

Half year results are due Wed 30th Nov.
Does Bal throw out the kitchen sink?

[hamhamham1] 28/11/2022 08:39

Share price drops are usually dramatic and recoveries can take easy 3x, 4x or 5x longer time period compared to the drop timeframe to recover.
Look at the historic charts, but that's just a 10,000ft view and hugely generic.

[hamhamham1] 28/11/2022 08:35

t2r, I am looking at that within next 18 months.
And my best case goes to 350-400p+ in 3yrs.
But who knows.
Is it update on Wednesday?
If so, would hope for 120p by tomorrow afternoon, but again what do I know, and calling short term pricing is just for fun, I am holding for 3-4yrs, over that time I really hope for a 3x from here, time will tell, and I spread my investments over 30ish companies, never all in on one!

[darrin1471] 27/11/2022 18:01

IGR issues of freight costs and late arrival of shipments are over. Margins will be recovering and should have fully recovered when new contracts are negotiated in January.
A small increase in sales volume, plus price inflation and a strong USD vs £ could add up to a growth in revenues of 20% in the next 12 months.
Recovery in margins and renewed focus on CSS efficiencies could happen in the next financial year.
So IMO we could see £2.50 within 6 months.

[time 2 retire] 27/11/2022 16:18

Ham1, so you're expecting a price of £2.50 then.? But can I ask in what time frame.
I'm hoping for at least £3 before I start off loading my 100k shares. Gl to us both come Wednesday and beyond.

[hamhamham1] 27/11/2022 11:31

I only got 20k x these, but that's enough to potentially get me £50k back, or maybe more, hopefully, GLA

[darrin1471] 25/11/2022 17:22

220k @ £1.15 after hours today

[time 2 retire] 22/11/2022 15:40

Some nice hefty trades going through lately.
Results next week.

[h1a3] 18/11/2022 13:44

Surprised Ankers has not bought more share at this price.

[aleman] 16/11/2022 16:21

So the company broker has increased its holding from 5.0% to 10.2% for its wealth management arm's discretionary investors. It says something if they are buying for their own clients in a big way.

[darrin1471] 16/11/2022 13:11

BH. Dollar is still strong despite recent weakness. Purchases in dollars, sales mostly in dollars and results in dollars. Easy to hedge what is not naturally hedged.

[darrin1471] 16/11/2022 13:05

VH. I hold CARD also but for very different reasons. IGR is up around 60% over the last 2 weeks and there was no noticeable change in trading in IGR after the Card TU.
Card, IGR and Moonpig all up around 50% in the last month so there appears to of been a change in sentiment.
Card TU said upgrade was mainly due to shops and "commercial partnerships are performing in line with expectations."
IGR are 60%+ US focused.