Ig Design Share Discussion Threads

[hamhamham1] 03/5/2024 16:57

Stock market going to the moon over next couple of years IMO.
Look for undervalued ones ;)

[aishah] 01/5/2024 07:45

@SCSWSharewatch on X:

#IGR IG Design Group: FY24 results well ahead of expectations – on course to hit operating margin target for FY25. You read it here first in January (major write up)

[aishah] 01/5/2024 06:09

Times article unrestricted view:

[hamhamham1] 01/5/2024 06:00

Fag packet figures (rough amounts, not exact)...
Jan 2020 - approx 70m shares at 700p in issue, market cap approx £500m. With last annual adj profit before tax of £30.3m.
Feb 2020 - approx 28m extra shares issued at just under 700p (total £120m). In order to buy CSS Inustries in the USA, adding approx 50% to group revenue.
April 2024 - approx 100m shares at 160p in issue, market cap approx £160m. With expected adj profits before tax of £20m ($25.2m).
May 2024 and rest of year - using the near 17x earnings to market cap ration of 2020, maybe soon at 350p - £340m market cap.(this figure is fully justified already today IMO).
2025 onwards... with profits returning towards 2020 levels, maybe back to 500p share price - £500m market cap (old company size), or maybe 620p share price - £620m market cap (inc CSS expansion)??????

[hamhamham1] 01/5/2024 05:03

Article in todays The Times business section seems to be very impressed...

"A cracking update from IG design.

Pre-tax profits more than double"

[hatfullofsky] 30/4/2024 23:35

Cash will be at lower levels at HY

[hastings] 30/4/2024 21:00

Purely the impression or my reading of it, after speaking with them. A lot of emphasis on where they want or expect to be by March 2025. Could well be wrong on the interpretation, but no big deal either way for me, given they clearly expect that once commencing the payment, it won't be a flash in the pan!

[time 2 retire] 30/4/2024 20:52

Hastings, can I ask why you say divi at full year 25 and not at the interim stage at half year results?

[hastings] 30/4/2024 19:48

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 19:16

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 15:15

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

[aleman] 30/4/2024 15:12

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 11:31

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

[cjohn] 30/4/2024 11:25

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 11:22

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 10:53

To see CSS turnover:
page 31

[hamhamham1] 30/4/2024 09:54

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 09:45

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 09:37

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 09:28

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 09:03

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 08:44

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 07:48

Money moved to GNC