Ig Design Share Discussion Threads

[hastings] 25/6/2024 06:17

Agreed Mas, happy with that. Speaking with the CEO and CFO again this morning, so will look to add something, although plenty of detail already there!

[masurenguy] 25/6/2024 06:07

Excellent, as expected after the y/e Trading Update 7 weeks ago.

Results for the year ended 31 March 2024

Second successful year in the three-year turnaround journey, with improving operational efficiency and simplification of the business

This is the second year in our three-year turnaround journey. We have continued to improve margins, delivered significant profit growth, and generated more cash than we had expected. Adjusted profit before tax is up 183% to $25.9 million (FY2023: $9.2 million). Margin recovery remains a key focus, and the 94% increase in adjusted operating profit to $31.1 million (FY2023: $16.1 million) translated into a 210 basis point rise in adjusted operating profit margin to 3.9% (FY2023: 1.8%). We therefore remain confident that we will restore, by 31 March 2025, the Group's adjusted operating profit margin to at least the 4.5% that was the proforma pre-Covid-19 margin following the acquisition of CSS Industries Inc. ('CSS') in March 2020.

I am pleased to report that both divisions contributed to the increased profits. The two main drivers behind this result remain the continued positive momentum in DG International, and the benefits coming from the turnaround initiatives that are continuing in the DG Americas division. The achievement is all the more greater as our teams have had to overcome some significant challenges in the second half of the year that were on top of the weaker consumer sentiment in a number of our key markets. First, disruption to shipping routes, both in the Middle East and around Panama, and the consequential spiking of freight costs. And secondly, managing credit risk in the increasingly competitive US retail environment.

Revenue was impacted by continued soft demand in a number of key markets, with continental Europe proving the exception. As a result, Group revenue at $800.1 million was 10% lower at reported exchange rates, or 11% lower in constant currency terms. Almost all of the decline was experienced in the DG Americas division. Another strong year of cash generation resulted in the Group ending the year with a net cash balance of $95.2 million (FY2023: $50.5 million). This improvement stems from continued progress in better managing working capital levels, especially inventory. Following the FY2024 re-financing, there is sufficient funding for our requirements.

Two years into the Group's three-year turnaround, we remain confident that we will restore, by 31 March 2025, the Group's adjusted operating profit margin to at least the 4.5% that was the proforma pre-Covid-19 margin following the acquisition of CSS in March 2020. Our actual aspiration is to deliver 5.0% by March 2025, and this should return the Group to its historic highest level of profit delivery, which was an adjusted profit before tax of c$35.8 million delivered in FY2019. Furthermore, we hope to see the Group return to profitable revenue growth during FY2025 as the restructured DG Americas division emerges stronger, and better equipped with the capabilities required to build a more sustainable, growing and profitable business.

[hamhamham1] 25/6/2024 06:05

Solid result confirmation with good outlook.
260p+ today defo.

[hamhamham1] 25/6/2024 06:04

Nice target in the Outlook section...

"Looking further ahead, the financial impact from the successful execution of the new strategy suggests that by 31 March 2027, the Group should have delivered three consecutive years of profitable sales growth, with targeted annual sales around $900 million by that time; whilst delivering an adjusted operating profit margin of over 6%. This translates to an adjusted profit before tax exceeding $50 million. We also expect strong cash conversion to continue, with average annual leverage being no more than 1.0x under normal conditions. These aspirations will be further defined as we make progress with the new strategy"

[hamhamham1] 25/6/2024 05:30

That's what I meant, after the spike on initial expectations recently with the prelims, any conformation with a couple of sweetners will send this to 250p+ hopefully.

[time 2 retire] 24/6/2024 18:22

No, full year results tomorrow.

[hamhamham1] 24/6/2024 18:11

Is it an update tomorrow?
Would be nice to get a 10% bounce if so ;)

[bigbigdave] 21/6/2024 13:04

Decent buying but refuses to budge

[masurenguy] 20/6/2024 14:37

Well we know what to expect from the year end trading update issued some 7 weeks ago.
A summary: Trading Update for the 12 months ended 31 March 2024
Significant growth in profit and strong cash flow, ahead of expectations

The Group has continued to make good progress on its turnaround journey of improving operational efficiency and simplifying the business. These initiatives have resulted in significant growth in profit and margin for the year. The Group expects to deliver adjusted profit before tax of $25.9m (FY23: $9.2m), which is ahead of market expectations. The Group's adjusted operating profit margin is expected to be c3.8% which is a further recovery of 200 bps on the previous year. The Group expects to deliver revenue for the year in line with expectations of c$800m. This is a 10% reduction year-on-year.

The Group closed the year with a net cash balance of $95m (FY23: $50m), a $45m year-on-year increase which is well ahead of market expectation. This improved cash position was driven by increased profitability and continued improvements in working capital management throughout the Group. Moving forward, the cash position of the Group is expected to continue strengthening due to its financial performance and sale of freehold sites following consolidation in the DG Americas division.

[stockhunters] 20/6/2024 13:25

buyers anticipating results to be very good and you cannot blame them

[bigbigdave] 20/6/2024 12:00

Breaking out here.

[masurenguy] 19/6/2024 14:57

Results due next week on Tuesday 25th.

[time 2 retire] 13/6/2024 14:03

This can't seem to break the £2 to £2.20 range, ping ponging around for the last month.
Hopefully full year results in a week and a half or so will get this moving north again.
GLA

[s34icknote] 06/6/2024 08:39

Some one accumulating ?

[s34icknote] 06/6/2024 08:38

Lots of late trades !!

[tomps2] 03/6/2024 12:26

IG Design Group (IGR) Full Year Results webinar

Tuesday, 25 June, 12:30pm

IG Design Group Chief Executive Officer, Paul Bal and Chief Financial Officer Rohan Cummings will host an online investor presentation of the group’s results for the year ended 31 March 2024, followed by a Q&A session.

To attend, register here: bit.ly/IGR_FY24_results_webinar

[masurenguy] 28/5/2024 15:01

Momentum here continues even on a down day in the markets ! 😊

[aishah] 23/5/2024 12:54

Buy rated by Shares Magazine today @201p:

"With a 345p price target, implying 70% upside, Liberum Capital points out IG Design’s cash pile is ‘already ahead of expectations, so surplus returns to shareholders could be the surprise over the next 12 months’"

[time 2 retire] 23/5/2024 07:58

Masurenguy

Not quite, we hit £2.30ish a couple of days ago before a bit of profit
taking took place but confident this has much higher to go this year.

[masurenguy] 23/5/2024 07:28

Shareprice is currently at a 12 month high !

[time 2 retire] 23/5/2024 07:23

We should get a "notice of results" RNS any day.
Results usually second half of June.

[hastings] 21/5/2024 09:28

Excellent performance over the last few weeks.

[s34icknote] 21/5/2024 09:15

Plus 75 cash pile ?

[s34icknote] 21/5/2024 09:14

What was the target price ? 345p ?That's just the start as margins recover !