Ig Design Share Discussion Threads

[aleman] 06/12/2022 13:12

Also worth noting that the 200-day average has turned slightly upwards recently, though that support is, again, well below the current price if there are market upsets.

[hamhamham1] 06/12/2022 11:14

Nice rise, again, today.

[aleman] 06/12/2022 10:38

Next significant resistance looks more likely to be around 150p, helped by the round number effect. That seems about right on the recent good numbers. I don't see enough good news yet to make the jump to 220p - though I suspect it will come in time. It's a broad channel so there's plenty of room for profit-taking back down to support if there are market upsets. I'd likely top up, should that happen.


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[aleman] 06/12/2022 10:35

Note the lack of significant volume at 140p last time. It should not provide much resistance if moderate buying persists.


free stock charts from uk.advfn.com

[wall street trader] 06/12/2022 08:48

I think the penny has dropped here - will be £3 at least in a few months - dividend will be reinstated and be cooking on gas

[value hound] 06/12/2022 07:46

Yes; concludes with ...

"The £127m market value looks low relative to consensus forecasts for sales of £788m, even adjusting for the debt and leases, while the 130p share price would look awfully tempting if earnings per share got anywhere near their 2020 peak of 16.9p (we sold in 2018 at 584p) and the dividend ever got near to 8.75p again.

IG Design has its risks but there is opportunity too. Buy."

[rideacockhorse] 06/12/2022 07:22

Tipped in today's Telegraph!

[wigwammer] 05/12/2022 09:21

Hmm... many of the doubters were saying the same things at 65p

[hamhamham1] 05/12/2022 08:46

Nice rise, again, today.

[justiceforthemany] 02/12/2022 22:22

Not talking about equity. Total liabilities, current AND non current comes to half a billion dollars. The venture into the US was ill advised. Inventory levels in the hundreds of millions.
Directors hold a pitiful amount of shares, negligible in fact. Not a single director has bought or added after results. Red flags.
Having said that NAV = 315p and price to sales is ridiculously low.

[aleman] 02/12/2022 21:23

Last H2, inventory, receivables and cash started at $654m and finished at $411m. That's a drop of $243m. Most of this freed cash was put to use to reduce liabilities - the bank overdraft, loans and borrowings dropped from $155m to $20m in H2 and trade payables dropped from $224m to $143m. Thats a combined drop of $216m.

This H2, inventory, receivables and cash start at $614m - $40m lower. Bank overdraft, loans and borrowings start at $176m and payables at $187m. Together, these start at $363m - $16m lower. You can still expect $200m+ generated from reducing current assets to be used to reduce the same liabilities in H2. The overdraft loans and borrowings will be reduced to maybe $30m and payables to maybe $120m. In the scheme of things, the year-end $30m of debt is almost negligible (so where does talk of high debt come from?) and might even be almost wiped out if margins continue to improve. Noises are good on that score. The overdraft, loans and borrowings are essentially financing working capital in stockbuilding season and paid off in H2.

Debt is not very high averaged out over the year. That's why interest is only $5m. It was almost negligible at last year-end, and should be only marginally higher this year-end but they will need a bigger facility to manage the large working capital swing if they expect to grow. A higher rate of bank base +3% from here under the temporary smaller facility is going to cost quite a bit more than the bank base +1% - on a lower base rate - that went before it on a larger facility. Presumably they are seeking a full refinancing to try do something about that - maybe more term debt and/or secured debt at a slightly lower rate to put a bit more cash on the balance sheet for flexibility, and less reliance on a revolving facility?

Sales up. Orders up. Margins rising. Underlying operating cashflow increasing. Profit ahead of forecast. Debt looks modest but slightly mismatched to needs. A better match is in the pipeline. Things look on the up - at least until the next global crisis rears its head. The shares are rising on several good trends in the numbers.

[hamhamham1] 02/12/2022 17:49

Last accounts according to HL showed a net asset value of £369m.

[time 2 retire] 02/12/2022 17:06

Half a billion total debt!
Have you had a Friday afternoon tipple?
Debt is nowhere near unless I've missed summat!

[justiceforthemany] 02/12/2022 16:59

I am a holder here but I suggest people look at the balance sheet - half a billion total debt and making a small to negligible profit is the real problem here.

[darrin1471] 02/12/2022 13:25

"Board will shortly initiate the development of a growth-focused strategy." was mentioned several times in the interim results.
This was not being talked about 6 months ago.
Pre covid growth plan was for $1.5bn and adjusted EBITA of $150m through organic growth and M&A.
M&A targets did appear to of been identified.
So if IGR are talking about a new growth strategy, then the intention to "fully refinance in H2 2023" should include organic growth and may include M&A growth.
With finance now being more expensive and harder to get, then dividends may have to take a wait a while if IGR want to take advantage of the growth opportunities they see.

[wall street trader] 02/12/2022 12:30

Santa rally in full swing - once dividends are reinstated this is going to be a great investment for my pension pot - reckon at the price I bought in the 80s this will in a few years pay me 20% a year in the not too distant future

[hamhamham1] 02/12/2022 08:50

Nice 4% rise.
A nice steady climb would suit me.

[hamhamham1] 02/12/2022 08:34

I'll take that :)

[aleman] 02/12/2022 08:11

I don't think the dividend should restart so low. The company only has debt needed to manage a pretty tough working capital cycle. That was aggravated by delivery problems so it cut the dividend to temporarily build extra advance stocks. The problem seems to have passed. (Other companies are also reporting less supply chain disruption AND an improving input cost situation.) I don't see why the dividend can't return quickly to previous levels. It could soon be higher. The company has grown. Marketscreener has consensus of two brokers at 4p dividend in 2024 then 11p in 2025.

[hamhamham1] 02/12/2022 07:48

Divis were 8 or 9p last couple of years before covid.
Hopefully will start with say a 1.5p maybe next year, but happy for them to get solid footing before they start.
Divis are nice here, but I see capital gains as the real potential.
Could get say to 250p that would be up another 130p, that's nearly 15x old annual high divis levels.

[hamhamham1] 02/12/2022 07:31

Yeah, up 2% to nearly 12.25% now.

[time 2 retire] 02/12/2022 07:11

The company Broker picking up another 2 million+ shares for its clients has got to be a good sign.

[justiceforthemany] 01/12/2022 17:59

Should have reinstated the dividend, even if it was a token one. Changes sentiment and share price would have surged. Bad management.