Ig Design Share Discussion Threads

[dr biotech] 17/1/2025 07:17:36

That’s a shocker of an update. This was one of scsw tips of the year and I thought about buying in (a couple of their other tips have already gone up significantly). Think this could halve today. Their US arm looks to be a total mess.

[ayl30] 17/1/2025 07:17:04

Glad I don't hold, sounds bad news all round. Makes CARD look even more stronger than it is

[masurenguy] 17/1/2025 07:07:13

What a complete disaster. My only consolation is that I just retained a residual small position here having sold 70% of my original holding @190p last July.

Trading Update

IG Design Group plc announces an update on trading for the period covering the nine months ended 31 December 2024, material developments since then, and an update on its outlook for the year ending 31 March 2025.

Key trading and operational developments:

. Transformation of the Group continues to plan, with business simplification, efficiency and cost-saving initiatives particularly focused on the turnaround of the DG Americas division

· Challenging market conditions and retail trends experienced in H1 across a number of our markets have continued into H2, and they have more than offset the benefits resulting from such initiatives

· Trading across both divisions since H1 has been impacted negatively over the important Christmas season, with DG Americas particularly affected, due to challenging retail conditions affecting customers

Post-period key trading and operational developments:

· As we previously communicated, a number of our retail customers in the very competitive US retail market have experienced considerable distress, and have in recent weeks entered protective arrangements or bankruptcy procedures. This week, a major (4th largest) customer of our DG Americas division has re-entered Chapter 11 protection. These events have required DG Americas to establish significant provisions, circa $15m, to offset its exposure to the amounts receivable from such customers as well as the inventory associated with them

· Furthermore, the sales performance of our categories at the retail level during the Christmas season versus customer expectations is also leading a number of retail customers to reduce or delay their forward ordering, impacting our future revenue projections, production scheduling and cost absorption

· As recently announced, Sue Buchta, the new CEO for DG Americas, has now joined the organisation. Sue brings an exceptional breadth of leadership experience and commercial acumen from a career in the consumer products industry. With her onboarding well underway, Sue will build on the turnaround plan, with a particular focus on how our strategy returns DG Americas to profitable growth.

Outlook:

· Given the aforementioned events, as well as the continuation of challenging retail conditions across both divisions, overall Group revenue for the year ending 31 March 2025 is now expected to be c10% below last year, and therefore below expectations, with both divisions expected to experience decline, with DG Americas estimated to decline c13%, and DG International decline c1%

· Correspondingly, FY25 adjusted profit is now expected to be significantly impacted, with profit delivery for the full year around break-even, and well below last year, as well as being significantly below current market expectations (believed to be $32.0m)

· Whilst the Group was on track to deliver its strategic expectations of returning margins to above proforma pre-pandemic levels of at least 4.5% in FY25, this will now not be realised and our aspirations will have to be re-planned and re-set

· A strong net cash position is still expected to remain at the year-end, albeit being lower than previous expectations given the reduced profit delivery and expected lower receivables recovery due to customer in protective arrangements or bankruptcy procedures. The Company also continues to expect cash proceeds from property disposals.

· As communicated at results, it remains too early to comment on what impact, positive or negative, any future changes in international trade tariffs resulting from the incoming US administration will have on the Group

· Under these challenging circumstances, at this stage, and until the recent events are more fully assessed, the Board is no longer able to provide guidance for the years beyond FY25. Pending any other material developments, the Group will provide a further update on its results for the year ending 31 March 2025 in late April 2025, with fuller reporting on 17 June 2025 ("FY25") which will include revised management expectations for FY26. Following the recent trading performance of DG America, the Group would now expect to write down the carrying value of its DG Americas division as part of its FY25.

Stewart Gilliland, Chair, commented:"We have been making good progress throughout our turnaround, focusing on our path to growth, developing a strategy of winning with the winning retailers and reducing the complexity across our business. However, the continuing challenging retail backdrop, especially in the US market has undoubtably impacted the performance, position and confidence of many of our customers - with clear winners and losers emerging. Whilst we do work with a significant proportion of the winners, our exposure to some of those finding things more challenging means that we are exposed to changing fortunes in the retail space. We're very pleased to have someone of Sue's calibre leading our Americas division. As a passionate and innovative leader, we are confident that her experience both in our industry and adjacent industries will bring further momentum to the transformation of this business.

These developments and their impact on the Group are clearly very disappointing, and we will continue to strengthen our business model to better withstand the emerging market reality. Notwithstanding external factors, fundamentally, our business is robust and we remain focused on our strong customer relationships, and with the continued commitment of our strengthening team, we will re-map our path to stronger and more consistent delivery. The Board is committed to re-introducing future guidance at the appropriate time."

[time 2 retire] 08/1/2025 07:22:50

A new CEO for DG Americas just announced, a lady with vast experience in this type of business. Starts today.

The Company is also pleased to announce the appointment of Sue Buchta to the role of Chief Executive Officer of DG Americas, effective 8 January 2025. Sue brings an exceptional breadth of leadership experience and commercial acumen from a career in the consumer products industry. She served as CEO of Wilton Brands, whose products are sold in over 105 countries and previously owned Simplicity Creative Group (sewing patterns, needle arts, and kids' craft products) before its acquisition by CSS Industries, Inc. in 2017. In addition to her tenure at Wilton, Sue held several sales and marketing leadership roles at American Greetings, where she ultimately led Papyrus and Recycled Paper Greetings after their acquisition. Her most recent CEO role was with IndiMade Brands, an e-commerce business with multiple brands. Sue will not be a Board director but will become a member of Design Group's Operating Board.

[julietzed] 04/1/2025 11:50:03

Finally, while it's hardly been a tragedy, they have and are saying they will now not achieve what they said they would this year. It's a slower turn-around at least.

[julietzed] 04/1/2025 11:17:34

Also, the market cap is 25% higher than you think, quite a large difference, which I encourage you to look at. Not expensive but still a lot higher.

[julietzed] 04/1/2025 11:04:26

Yes, but the strength of the cash position comes from one-offs, and if you think they will turn it around they will need it, so you won't see all of it. I don't think they are going bust, but I don't know whether they will turn it around in the way you are expecting.

As for growth, a big part of their market in the US is not as stable as it was, and I expect competition in its main market. It might do okay, but I don't feel this is a growth company, and if it is, they will need that 95m, so you invest for one or the other but not both..

[deanowls] 04/1/2025 06:22:18

But that’s why it’s the price it is. Is t it?

They are turning it around and the results of the last few years which have been exasperated by shipping and inflation issues have been managed. These are not switches, it takes a minimum of 9-12 months for strategies to be changed and implemented. Such as the closure of China.

In terms of cash in April I expect them to have approx 95m gbp and that’s without any properties being sold. Against a market cap of currently 120.

That’s when people will get excited and I expect it to find a base and grow from there.

[julietzed] 03/1/2025 13:15:00

It could prove to do okay but it looks like a cigar butt at best. There's no evidence that they have managed to successfully integrate the acquisitions, and there's lots of hidden gotchas in the details if you look at them. I think they are getting smaller. The short-term could give people an out at a generous price, but don't let the cash positions belie the truth in the longer term.

[masurenguy] 01/1/2025 16:44:07

Disagree with #1549. While H1 results were disappointing management seem to have a grasp on developing a turnaround. Cashflow was positive with a$15m net debt in H1 last year converted into a net cash position of $7.4m this year and management remains confident in delivering improved profitability in H2. The sharesprice is off the bottom and up by 20% over the past quarter. Currently, they are trading at a PER of 7.4 for the projected year ending March 2025 and with a reinstated dividend of 3.6%. That represents a good value metric providing that management deliver and their broker Canaccord currently has a price target of 270p!

[veryniceperson] 31/12/2024 10:54:52

Cheers stonk

[stonks394] 31/12/2024 10:18:33

ramped by cocney rebel as a 2025 share tip

usually good to sell share tip spikes imo based on what ive seen in the past. take advantage of weak buyers

RSI is well overbought now and due a pullback

[veryniceperson] 31/12/2024 10:12:25

Has anybody gotten any information on why the price spike. It's a very nice late Christmas present.

[gswredland] 30/12/2024 11:19:55

And rightly so

[stonks394] 30/12/2024 11:06:52

no just being ramped by cocney rebel

[battlebus2] 30/12/2024 10:47:05

Moving well this morning. Those cracker sales must’ve been cracker 🤣

[time 2 retire] 20/12/2024 09:36:36

IGR gets a mention in today's Times but I'm unable to post as not a subscriber.

[hamhamham1] 07/12/2024 17:52:44

HAMHAMHAM1 RAISES IG DESIGN GROUP PRICE TARGET TO 245 (180) PENCE - 'BUY BUY EVERYBODY BUY BUY'

[battlebus2] 04/12/2024 19:32:48

Thanks T2R. 🤞. Hope that retirement is going well.

[time 2 retire] 04/12/2024 19:24:35

Hi bb2, good to hear off you, we conversed a few yrs back.
Yepp I spent 24 years with IG before retiring in 2012 but I'm still here for my sins.
Glad to see you a holder once again, good luck to us both.

[battlebus2] 04/12/2024 19:18:49

Hi T2R. You’re a blast from the past. Do I remember you working for IGR way way back?

[time 2 retire] 04/12/2024 19:16:23

Bh23, no active shorters with IGR apart from you and you're irrelevant!
Hamilton sold under 3000 shares out of 10 million so nothing to worry about but nice try!

[blackhorse23] 04/12/2024 12:00:27

Hamilton is shorting , ref: RNS

[battlebus2] 29/11/2024 13:47:35

Thanks value hound. I agree with all of that summary. I’m optimistic that management will do what they say.