Ig Design Share Discussion Threads

[hastings] 30/4/2024 20:48

Looking at the broker note and having spoken with the CEO, I'd be very surprised if there was a dividend before the end of full year 2025.What he did say, which I didn't include in my article is that they do not intend to commence a dividend only to then have to reign back. I'm therefore reading that 2025 will see the resumption of dividends as forecast with a confidence to continue that in the subsequent years.

[aleman] 30/4/2024 20:16

The dividend decision for Y/E 2024 could be interesting. If orders are flat for Y/E 2025, I suspect they might pay a 2.5p to 3p dividend from the better than expected earnings and cash balance . If orders are higher into Y/E 2025, and they are going to need some extra cash to build the higher stock swing needed to service them, then I suspect they might pass a possible Y/E 2024 dividend. It's not often that I hope a business does not return to paying a dividend soon, but I do on this occasion.

[aleman] 30/4/2024 16:15

Looking set up for a golden cross in a few weeks, too, if the rise sticks?

[aleman] 30/4/2024 16:12

Not a lot of profit-taking after such a rise. I'd guess they might go little higher after Investors Chronicle write it up again. (They've covered it before.) I can't find anything yet so they might be saving it for the actual results or maybe waiting for a slight pull-back themselves so they'll get more bang for their buck.

[johnv] 30/4/2024 12:31

Nice update, back to the price it was a year ago.

[cjohn] 30/4/2024 12:25

I remain a holder here, having bought back in the doldrums as a classic deep value purchase when they were being given away at ridiculous discounts to net tangible assets a couple of years ago.


Now it makes sense simply to hold on the basis of the strong likelihood of yet further improvements in trading.

[hastings] 30/4/2024 12:22

Write up for interest following my recent catch up with management.https://martinflitton1.wixsite.com/privatepunter/post/igr-on-the-recovery-road-30-04-23

[hamhamham1] 30/4/2024 11:53

To see CSS turnover:
page 31

[hamhamham1] 30/4/2024 10:54

If did get to $40m earnings.
Then at 14x that would be double and some from here.
That'll do me.

(And besides, more likely snapped up by other industry Corp or those damn PEs is my guess)

[hamhamham1] 30/4/2024 10:45

Am not against the sp, just being toned down.
To prove it, I have just bought a load.
About 12k x across 2 trades.

[eddie1980] 30/4/2024 10:37

Example: 2019, op profit 25.7m on rev of 588m - margin 4.4%. Gave normalised EPS of 40.1c.

Share price in the £6’s.

Post 2020 - revenues now 800-900m (due to acquisiton.

Trying to get back to 4.5% (and beyond). Note they don’t talk about specific EPS, they are guiding on margins.

Achieving same margins on turnover 50% bigger, will give profits 50% bigger. EPS will be broadly same / slightly bigger (if only 40% increase in shares vs 50% profit.)

So, with EPS same/slightly bigger, and business on same multiple, why not same share price as before?

(I’m not saying I think it will ever go that high, but simply saying larger share count means it won’t, when issued share were for accreditive earnings) is wrong.

[eddie1980] 30/4/2024 10:28

That’s not what you said though - it was implied the raise was because it was in distress (ass saving) - when exact opposite. Acquiring business using a very high equity value to fund.

On the share price - again you are ignoring the increase in EPS an acquisition brings. If the enlarged entity is value accreditive - enhances EPS, then no reason the share price would decline. More shares but equally more profit, so if valued on same multiple (and acquisition was at lower multiple) it would drive price higher.

I assume you are simply mistaking it for a raise to cover losses, where increased share count would not have brought increased earnings.

[hamhamham1] 30/4/2024 10:03

Prob true.
But there are 40% more shares around nowadays comp to pre 2020, so add 40% to current price to get a comparable to old days IMO.

[eddie1980] 30/4/2024 09:44

Um, that is a very cinical view of the placing in Jan 2020. They bought another company for $120m and raised the funds via share placement at above £6.50. Given the share price now, that is an absolute bargain for current / new share holders.

Hardly saving ass.

[blackhorse23] 30/4/2024 08:48

Money moved to GNC

[masurenguy] 30/4/2024 08:22

What a fabulous update
😊
Onwards and upwards !

[aleman] 30/4/2024 08:15

Huge cash balance, PBT of $50m/£40m two years away, and market cap is about £140m after the rise.

Edit - I can't keep up. £150m.

[dan_the_epic] 30/4/2024 08:04

up 20% despite no change to 2025 profit forecasts.

Better cash but now some new legal claim to deal with that there is hardly any detail on....

seems a bit of a intraday bubble

[tonytyke2] 30/4/2024 07:59

se81, cheers thanks, hopefully the share price will start re-rating today.

[se81] 30/4/2024 07:58

yes TP 325p

[tonytyke2] 30/4/2024 07:56

se81 have Cana increased their price target to £3.25 now from £2.75? The value here looks ridiculous, dividends look set to kick in also. Again, as a reminder Sharepad indicating NTAV of £279.2m v market cap of £119.4m. This could imo, really start to launch this morning.

[justiceforthemany] 30/4/2024 07:49

Dividend must be reinstated.

[se81] 30/4/2024 07:34

Turning into a pretty stunning turnaround from Bal et al

Cana this morning

"IGR’s FY24E TU highlights a better-than-expected financial outcome and confirms another year of progress in rebuilding margins and profitability. Whilst the 10% revenue decline was in line with expectations, margin recovery was better-than-expected with FY24E EBIT margins increasing by c.200bps yoy to 3.8% (CGe 3.4%), delivering adjusted PBT of c.$25.9m (CGe $20.5m), growth of c.182% yoy and c.27% ahead of our $20.5m forecast. YE net cash of c.$95m (CGe $75m) is also better than expected. The strong FY24E outcome gives management confidence that it can return the Group to prepandemic margins in FY25E. We see today’s update as a potential inflection point that should give the market confidence in the deliverability of future forecasts. We believe the market should now focus on the near-term strategic growth ambitions presented by management, which include an aspiration to achieve c.$900m in revenues, EBIT margins north of 6%, and adj. PBT of c.$50m by the end of FY27E, +c.40% compared to IGR's previous record adj. PBT of c.$35.8m in FY19. The FY24E margin beat prompts meaningful FY24E profit upgrades, albeit FY25E P&L forecasts are unchanged at this stage with cash forecasts increased."