Ig Design Share Discussion Threads

[darrin1471] 30/11/2023 08:43

"The seasonality of our business cycle means that first-half profit and margin delivery is diluted in the second half of the year"

[justiceforthemany] 29/11/2023 23:58

Is the P/E not around 4 here?
If H2 matches H1?
US sales the main concern. Steep drop off - reason?

[time 2 retire] 29/11/2023 18:59

Just watched the presentation and nothing scary there.
Divis back in 16 months if things stay on track.

[darrin1471] 29/11/2023 18:02

H1 results appeared better than I expected and I appear to be wrong on the timescale for recovery. I don't know if I was just tired yesterday but the numbers just did not make sense when I read them. I will watch the presentation and look at them again over the weekend.

[aleman] 29/11/2023 16:22

Some revisions look to have been digested. Consensus of 3 brokers sees 2024 EPS lifted to 7p but 2025 eases to 17p. 2026 comes in with 22p. Dividend 0p, 5p then 8p. Net cash £59m, £70m, £79m.

The shares look very cheap if you net cash off. I can see that a pessimist might say we need to see more numbers hit expectations in the current tricky market - though it's a good stock for a tricky market. Whilst already expecting a good cash level on the balance sheet, falling sales would just convert more of the substantial stock and/or receivables into cash.

[tomps2] 29/11/2023 15:34

IG Design Group (IGR) Half Year 2024 results presentation - November 23

IG Design Group CEO, Paul Bal and CFO, Rohan Cummings present results for the six months ended 30 September 2023, followed by Q&A.

Watch the video here:

Or listen to the podcast here:

[aleman] 28/11/2023 10:53

We should get another good write-up in the IC. This was published only 6 days ago, with comment on Canaccord numbers after the October update, so it should soon draw another comment with revised numbers tweaked or not.



IG Design rallied in response to a half-year update. It confirmed that it had achieved “significant growth in profit and margins for the six months ended 30 September”. It added that “net debt was significantly lower than a year ago, reflecting strong cash flow”. “Both measures were notably ahead of management’s expectations for the period.” Canaccord Genuity issued a note that valued the company at 12.4 times earnings the current year ending March 2024. More importantly, it expects it to recommence paying a dividend in the following year to March 2025. Even after the rally in the share price, that leaves the stock at 150.5p, on a March 2025 price/earnings (PE) ratio of 5.9 times and a dividend yield of 6.4 per cent. Management is doing an excellent job of restoring the business to profitability. The jump in the share price suggests expectations were at rock bottom. I don’t think it is the only stock in my portfolio where some good news will spark a sharp recovery in the share price.

[aleman] 28/11/2023 10:29

In the latest 6 months, Net Assets rose by $21m and that's despite some minor reductions in fixed and intangible assets and deferred tax assets. Current assets minus current liablities rose from $202.5m to $216.6m. Scrub off lease liabilities and there's only $18m of non-current liabilities so no debt to speak of outside of that to finance seasonal working capital which has been greatly reduced as it has become expensive. The balance sheet looks much stronger. They almost look like like they could pay out the consensus 2025 dividend of 7p in 2024 based on cashflow, though EPS this year don't look like covering it yet. It will be interesting to see how the EPS and dividend outlook gets revised after what looked like quite a strong H1.

[aleman] 28/11/2023 08:18

A $48.6m reduction in net debt is "nothing to see"? They'll be earning interest in H2 instead of paying it. These look outstanding results in a difficult market.

[se81] 28/11/2023 08:13

Very quiet here- I'm really impressed with those numbers this morning- the net debt, profit/margin recovery on lower revenues- looking like quite a smooth turnaround

[wall street trader] 28/11/2023 08:08

This is just a hold for a longer term recovery - they are on track - nothing to see here today

[pugugly] 28/11/2023 07:17

Looking good - Now to see if meets market expectations.

[time 2 retire] 31/10/2023 07:08

IGR gets a hold rating from Questor in todays Telegraph.


The Telegraph
If you are an aggressive, risk-tolerant investors should hold on to these shares
Russ Mould
Tue, 31 October 2023 at 7:00 am.
wrapping paper.

Regular readers of this column will know that one of our favourite trends at any company is a reduction in debt. Lower borrowings mean less risk, as well as lower interest costs.

A less risky business can attract a higher multiple of earnings from investors to reflect greater certainty that profits will be maintained or increased in future, while lower interest costs mean, all else being equal, a rise in profits. Hence the potential for a nice double boost to the share price from a fall in debt.


IG Design, the stationery, gift wrap and crafting specialist, looks like a case in point, rather as we hoped in our study of December last year.

The shares jumped nicely last week thanks to comments in a trading update from the company that cash flow had exceeded forecasts, with the result that debt was lower than expected.

The Aim-quoted concern achieved this thanks to cost cuts and operational efficiencies, even as sales in the first half of the fiscal year to March 2024 fell year-on-year, owing to weakness in the US market in the run-up to Christmas and some normalisation in seasonal ordering patterns.

IG Design therefore still has much to do, even if chief executive Paul Bal seems confident that profits and cash flow will improve considerably in the current financial year.

A refinancing in June and continuing debt reduction give Bal and the revamped management team room in which to work and the good news is that analysts’ sales and earnings forecasts are rising.

That slow start to the festive selling season in America may have wider implications for consumer spending, so this is a trend that must be carefully monitored, especially by any investors who own stocks that rely on the US consumer and trade at a high valuation thanks to lofty expectations of future growth.

At least in the case of IG Design we have some protection against any such adverse trends, since its £132m market value compares with $206m (£170m) of inventory on the balance sheet and net tangible assets of $263m (£217m at the current sterling/dollar exchange rate of $1.21).

There is also potential for gains should the company even come close to achieving its goal of returning to pre-pandemic operating margins of around 7pc by March 2025, since earnings per share reached 16.9p in 2020.

The shares trade at barely eight times that figure, although more work is needed on the balance sheet and the risk of a slowdown in consumer spending is not one that can be dismissed easily, so the stock is best suited to aggressive, risk-tolerant investors, not cautious ones or income seekers.

The first-half results will be published on Nov 28; meanwhile the continuing reduction is debt is a welcome trend at IG Design and we will hold.

Questor says: hold

[darrin1471] 25/10/2023 19:48

I'm still feeling negative. Cash generation should be strong if revenues are down and pushed into H2 as less working capital is required in H1.
Canaccord say "restoring operating margins back to pre-pandemic levels by FY25" but IGR consistently say "end of FY2025". Its a subtle but important difference. To me end of FY 2025 is post Christmas 2024

[time 2 retire] 25/10/2023 16:32

A nice write up by Canaccord and gives a £2.75 price target...

IGR News

IGR Professional News
Canaccord Genuity reiterates 'buy' rating on IG Design
Wed, 25th Oct 2023 11:10Sharecast News
(Sharecast News) - Analysts at Canaccord Genuity reiterated their 'buy' rating on consumer products manufacturer IG Design Group on Wednesday, saying the firm's interim trading update detailed "a robust financial performance" in what remain "challenging market conditions".

Canaccord Genuity said "good progress" continues to be made in improving operational efficiencies and simplifying the business, which has resulted in "significant growth" in profits and margins across the first half. It also pointed out that the improved profitability, coupled with more efficient working capital management, led to "strong cash generation" resulting in significantly lower net debt year-on-year.

"We take encouragement that initiatives aimed at restoring operating margins back to pre-pandemic levels by FY25 continue to gain traction and the aspiration remains on track," it said.

"These initiatives include headcount reductions, the benefit from last year's exit of unprofitable contracts and catch-up pricing, and a more joined-up approach to sourcing, along with the consolidation of group sites. We expect to get more detail on this progress along with an updated outlook at the group's interim results on 28 November. As a reminder, we forecast FY24E adjusted operating profit to improve by 62.5% yoy to $26.1m, with margins improving to 3.2% from 1.8% last year.

Canaccord noted that IG Design has made "good strategic progress" under its new leadership team, with the refinancing at more favourable terms, and successful execution of strategic initiatives driving an improved financial performance. It said the focus going forward remains on recovering margins and future growth opportunities.

IGR trades on a March 2024 estimated enterprise value/underlying earnings ratio of 2.6x dropping to 1.7x March 2025E, continuing to highlight "inherent value" in Canaccord's view. The analysts also reiterated their 275.0p target price on the stock.

[smallcapinvestor1] 25/10/2023 14:45

They should be 200p on this update, there was no reason for last week's drop. Very sad. But problem is market wide rather than stock specific.

[blackhorse23] 25/10/2023 12:52

Time to get out & buy more WJG LOL

[tomps2] 25/10/2023 09:51

IG Design Group (IGR) H124 results webinar

Tuesday, 28 November, 1:30pm

Paul Bal, CEO & Rohan Cummings, CFO will present interim results followed by Q&A.

Register here: bit.ly/IGR_H1_2024_webinar

[wad collector] 25/10/2023 08:52

Still spamming the boards with your fantasy buys blackhorse.
Well the market seems to have liked the TU, so far, up 15%.

"The Board believes the trading results for the full year to 31 March 2024 remain in line with the Board's expectations for the year. This represents a strong year-on-year improvement in profit and cash flow compared to the prior financial year, albeit sales will be lower for the reasons given. It demonstrates continued delivery of the Board's aspiration to return the Group to pre-pandemic operating margins by the end of FY2025."

I suppose that the lack of numbers at least will be remedied in a month with the results.

[darrin1471] 25/10/2023 07:52

Trading update. No figures released again.

[blackhorse23] 20/10/2023 12:59

Added GATC & WJG today

[chelseamann] 18/10/2023 16:07

last year it was 20 Oct which would make it this Friday

[tonytyke2] 18/10/2023 14:19

My guess is news possibly tomorrow, but we will see. Update cannot be far away.

[time 2 retire] 16/10/2023 14:45

News!!!

More like lack of news...

This company has always been the same, total silence for months on end...