Ig Design Share Discussion Threads

[dan_the_epic] 01/4/2024 10:25

Will freight costs (they said they were more floating at half results) and a weak christmas consumer cause a profit warning?

[tonytyke2] 15/3/2024 10:50

Yep justiceforthemany this appears to be in significant value territory imo.If the next update is anywhere decent we could be off to the races imo. Fingers and toes crossed on this.Sharepad stats today indicates a market cap of £115.5m and a NTAV of £279.2. Really that much variance?

[blackhorse23] 14/3/2024 08:44

I think GNC better chance for growth rather than IGR

[justiceforthemany] 12/3/2024 15:38

This is trading at very low multiples on all metrics.
NAV is 285p!

[deanowls] 26/2/2024 13:21

Some decent buys going through today again. Results will show cash, can they increase the margin and slow the falling sales. If they can this should decently rerate.

[deanowls] 21/2/2024 09:13

Continued block sales going through, big seller in the background holding the price down?

[blackhorse23] 15/2/2024 12:54

https://www.londonstockexchange.com/news-article/GNC/director-pdmr-shareholding/16333680

[aleman] 15/2/2024 10:06

Concentrate on margin. It's already reduced debt to the point that they can pay a dividend again. Growth will come in time or not but if they keep the better margin, we'll get a decent return through the dividend.

[investopia] 15/2/2024 08:36

Interesting point you make darrin1471 and food for thought. On balance, though, I'd rather have profits than volume. More bang for the buck, so even smaller increases in volume will then likely boost the bottom line.

[darrin1471] 08/2/2024 08:06

Has the EBT scheme supported the share price or put a lid on it?
Revenue growth predictions look easier to forecast than to achieve.
I do not follow IGR as closely as I used to but my view was that volumes were sacrificed for margin. Are IGR going to be able to get those volumes back on higher margins?

[masurenguy] 08/2/2024 07:48

"If I pull out one of the recovery names, IG Design Group. The provide celebrations paraphernalia to big retailers. Walmart, Tesco, etc. Historically done 6% to 7% operating margins. Those margins got crushed through Covid. Management have come out saying, we can get margins back to 6%. If they do, that business is trading on 5 x P/E. In the 5 years to 2021 the business traded in excess of 15 x P/E. So, I’m not saying that’s the right multiple, but 5 x is a very low valuation for that business." George Ensor, fund manager of River and Mercantile UK Micro-Cap, 2nd February 2024.

[time 2 retire] 07/2/2024 17:49

Some nice big trades through today, that should be the end of EBT scheme. RNS soon to confirm imo.

[time 2 retire] 05/2/2024 08:39

£2.80 million at £1.40 a share I make it about 345k shares maximum left to buy.

[masurenguy] 05/2/2024 07:59

More EBT shares being purchased @£140p. They must be close to completing the £2.8m purchase programme announced in December.

[time 2 retire] 25/1/2024 14:05

This share price is so predictable, it was always heading back to £1.40 to allow the company to complete the EBT, hopefully not long left now until they complete the £2.8 million maximum purchase.

[blackhorse23] 24/1/2024 17:15

Not feeling great in here ! money moving to GNC

[time 2 retire] 19/1/2024 18:08

A nice 750k trade gone through at £1.40 so hopefully that's the end of the company buying for the EBT scheme. RNS Monday most probably.

[aleman] 19/1/2024 00:13

On examining the balance sheet changes, there are about $45m lower inventories and a $30m lower balance on receivables over payables. That totals $75m lower that can potentially be converted from working capital into cash. It ties in with the lower working capital build in H1 of $100m versus $136m the year before. That is less to reverse. Cash freed up in H2 is going to be much less than last year but it will depend on orders. My guess is the cash released in H2 will come in below FY22's $90m (FY23 being flattered by stock reduction and reduced receivables /payables as the business shrank. It might shrink more.). If it turns out about $75m or so, it would take FY net cash to about $60m or so. Call it £50m. That's only $10m ahead of last year and well short of the market cap. If there is more business shrinkage, as looks possible, it might be a little higher. But we don't really want more shrinkage.

Having worked this out myself, I only then thought to check consensus forecast. It is net cash of £58m for 2024 and £70m for 2025. These are significant enough to still give investors pause for thought in valuation.

[hatfullofsky] 18/1/2024 23:00

Cash delivery over the year is expected to be above Board expectations

[hatfullofsky] 18/1/2024 22:55

In FY23 net cash increased 123m in H2In FY22 net cash increased 90m in H2In FY24 some sales were pushed into H2 plus (as has been mentioned) a HY Net Debt of 15mIt may not reach 145m but it's going to be stand out

[aleman] 18/1/2024 15:58

I think he is possibly exaggerating a bit but there is an underlying story there. The swing in net debt from H1 to FY can be over $100m and there is only $15m net debt at H1. The market will probably ignore a prospective large FY cash balance until it is announced and then rave about it as if it is some amazing turnaround when the turnaround is pretty much on show at H1. There are graphs of monthly net debt in the H1 presentation on page 10:



I imagine the shares will rise in the run up to the results as it anticipates the huge improvement in net cash and the associated reduced interest cost of funding seasonal working capital. I don't think the market has fully understood the improvement as it has concentrated on the reduced revenues rather than margins, stocks and cashflows.

I should caution, however, that the business has shrunk a bit and cut stocks so the swing could be less than $100m this time - but still give a good net cash figure.

[time 2 retire] 18/1/2024 15:18

Hatfullofsky,
That would be nice but where are you getting these figures from?
IGR got a market cap of £140+million and I think the most they've ever had at year end is circa £45 million.

[hatfullofsky] 18/1/2024 14:40

IGR could announce net cash near their current market cap by the end of March, it's seasonal but also amazing

[time 2 retire] 18/1/2024 11:26

This was always going back to £1.40 to allow the company to complete their share purchase scheme, once complete perhaps we'll finally take off!

[darrin1471] 17/1/2024 18:27

"Paul Scott / Graham Neary on Stockopedia one of their 2024 stock picks"

Not the one I was thinking of.

The tip did not convince me that I should buy back in. I did go back and look at the last IGR webinar again