Ig Design Share Discussion Threads

[time 2 retire] 29/11/2017 06:56

We also get nice write ups in The Telegraph and Daily Mail today.





This share wont be down for long IMO, yesterdays 35p fall wasn't warranted when you look at the ratio of buys to sells, a bit of profit taking is always to be expected.

[time 2 retire] 29/11/2017 06:37

A nice write up from The Motley Fool...

IG Design Group (LSE: IGR) has been one of the London’s poorest performers in Tuesday business.

Following the release of half-year numbers it was down 10% from Monday’s close but, as you will see, there was little in the statement to prompt such a sudden drop.

Instead, today’s mild sell-off can be attributed to profit booking on the back of recent share price strength. IG Design’s market value swelled by almost a quarter in the month leading up to today’s results, with the firm hitting a record of 435p per share just yesterday.

Today’s release suggests to me that the Bedfordshire-based firm should resume its upward charge sooner rather than later.

Global superstar
In a sign of further progress, chief executive commented today that it had enjoyed yet another “robust performance” in the six months to September, a period in which it saw “all regions trading profitably and growth being achieved both organically and through acquisition.”

Revenues at IG Design — which designs and manufacturers gift packaging, greetings, stationery and a variety of other giftware — leapt 14% in the six months to £166.5m, with organic sales at constant currencies increasing 10% year-on-year. As a result, pre-tax profit at the firm ballooned 27% in the first half to £10.5m.

Buoyed by this impressive performance, IG Design decided to light a fire under the interim dividend, hiking the payment by 14% to 2p per share.

It’s little surprise to see IG Design striking such an upbeat tone as its broad catalogue of products fly off the shelves across all major territories. In the Americas and the UK, IG Design saw revenues climb by 18% and 4%, respectively, in the period to September, to $91.3 and £57.5m. And sales are likely to continue booming Stateside thanks to the shrewd acquisition of US-based rival Lang last year.

As if this wasn’t enough, IG Design also continues to make impressive progress in its other international markets; in Continental Europe and Australia sales advanced 19% and 13%, respectively, in the first half.

City analysts are expecting earnings at the business to rise 10% in the year to June 2018 — and follow this with a 14% advance in fiscal 2019. And I reckon that these impressive projections could be subject to meaty upgrades in the weeks and months ahead.

With IG Design’s improving balance sheet also raising, the possibility of additional earnings-boosting M&A (net debt fell £6.2m during the first half to £70.2m), I reckon the business is a brilliant growth share worthy of a premium forward P/E ratio of 19.5 times.

[montynj] 28/11/2017 14:20

I've added also. Stock has made the classic chart retracement back to the level where it broke out recently. Now the advance will start. Great level to buy

[nw99] 28/11/2017 12:28

Adding here looks oversold

[rivaldo] 28/11/2017 11:16

Cheers Jeff H. Looks like some traders exiting today from those who pushed the price up pre-results. I often wonder how many of these people ever make any money, or at least enough to warrant the risks they're taking before every such RNS? A debate for another day....

Progressive Research have issued a rather weighty 37 page report on IGR today - free to view:



"Better by Design
Initiation and Interim Results

IG Design Group plc. (“Design Group”), is an industry leading, global retail supplier. It operates in four main categories: Celebrations, which includes gift wrap, cards, crackers and bags; Stationery and Creative Play, Gifting and Not-For-Sale Consumables. It is differentiated by its concept of end-to-end design which takes a whole-process engineering approach from building customer relationships, through sourcing and manufacturing to delivery.

It pays meticulous attention to customer requirements, making considered investment in manufacturing capacity, sourcing expertise and achieving incremental cost reduction gains which protect margins in the face of cost pressures. It is focused and entrepreneurial in its search for new revenue streams in adjacent product categories.

Strong first half-performance sees management confident of meeting
or exceeding full-year expectations."

[jeff h] 28/11/2017 10:05

Thanks Tomps, here's Cenkos view of the Interims:-

Cenkos: IG Design Group Plc - Strong interim results

IG Design Group (DG) has reported another strong set of interim results with H1/18A reported revenues and adj EPS up 14% YoY to £166.5m and 10.9p respectively – reflective of the positive impact of both the Group’s investment in design-led manufacturing technologies and pursuit of earnings-enhancing M&A. With a full order book and with each operating segment continuing to trade profitably, the inherent organic growth potential of the Group’s geographically diverse market positioning continues to underpin our forecast convictions – our market forecast for both 2018E and 2019E remains unchanged. BUY.

Double digit organic sales growth. reported revenues grew organically by 10% YoY (constant FX basis) – driven primarily by strong operational progress in both the Americas (+18%) and Mainland Europe (+19%). Specifically, we understand that both operating segments experienced significant market share growth – achieved via a combination of onboarding new customers and upselling additional product categories (e.g. Creative Play) to key incumbents. Australia also traded robustly with revenues up 13% YoY, driven mainly by traction gained in the robust ‘Independents’ retail channel.

M&A upside potential. We point to the acquisition and successful integration of Enper Giftwrap BV (2014A), Lang and Biscay Greetings Pty (Sep-17) as testament to management’s track record in strategic M&A execution. Whilst we assume no financial upside with respect to additional M&A over our forecast window, we flag the increasingly consolidatory nature of the UK and EU greetings card/gifting market and thereby the potential for further bolt-on and (potentially) transformational acquisitions in the short to medium term.

A solid margin profile. A combination of an evolution in the sales mix towards higher margin product categories (e.g. single greetings cards) and manufacturing/M&A-led synergistic benefits post The Lang Companies Inc. (‘Lang’) acquisition in 2017A has led to a 20% YoY increase in adj operating profit – up £1.8m to £11.1m with margins up ~30 bps to 6.6%.

Cash generation underpinning investment capex and increased DPS. With a ~4% YoY increase in net working capital (£99.4m) materially outweighed by the aforementioned 14% increase in reported revenues, management’s focus on cash flow generation is self-evident. We remain increasingly bullish with respect to the operational upside expected to flow to the Group on account of planned significant capex – e.g. machinery enabling the UK-based production of ‘not-for-sale consumables’. We maintain our 2018E capex forecast at £10.0m (65% allocated against investment capex). Moreover, the Group’s commitment to a progressive dividend policy (DPS up 33% YoY to 2.0p) provides investors with an increasingly attractive combination of both growth and income.

[time 2 retire] 28/11/2017 08:05

A really good watch Tomps2, thanks

[tomps2] 28/11/2017 07:42

IG Design Group (IGR) H1 results November 2017

Overview by Paul Fineman, CEO



Overview – 00:17
Territories – 01:27
Diversification – 02:35
Driving efficiency – 04:13
Acquisitions – 06:08
Outlook – 07:13
Group Financial Officer – 8:11

[nw99] 28/11/2017 07:36

Looks good Rivaldo

[rivaldo] 28/11/2017 07:32

Very good H1 results, with PBT up 27% to £10.5m (from £8.2m) and underlying EPS up 14% to 10.9p.

A confident outlook too, as well as a high-profile CFO appointment:

"A full order book and a strong performance in the first half of the year provides confidence that the Group is fully on track to meet full year market expectations for profit and other key underlying metrics.

Paul Fineman, Chief Executive said:

"We are once again delighted to be reporting a robust performance during the first half of the year, with all regions trading profitably and growth being achieved both organically and through acquisition.

Our business is diversified by product category, regional activity and by customer channel, all with a common theme of adding value through potent and commercial design, efficient manufacturing, sourcing and excellent customer service.

Building on our established track record, we are pleased to be identifying still further compelling investment opportunities to continuously improve efficiency and enhance capability across all territories.

We look forward to providing a further update during January and remain committed to creating sustainable value for our shareholders through both organic growth and, when the opportunity arises, through carefully considered acquisitions."

[time 2 retire] 27/11/2017 15:11

Last bit of topping up before the results, onwards and upwards...
GLA

[panic investor] 27/11/2017 14:01

Are the figures due out tomorrow ?

[interceptor2] 24/11/2017 08:22

Thanks t2r I hadn't noticed the increased broker estimates which are 15% higher than my records from July.

If sentiment has continued in a similar pattern to the August trading update, then next Tuesdays interims should be rather good.

Edit, Correction not 15% increase but about 3%, I had calculated on this years revenues.

[time 2 retire] 24/11/2017 08:15

I've just noticed that next years revenue forecast has been upped to £342.40 million with a pre tax of £23.20 million-looking good...

[nw99] 23/11/2017 15:39

Mopped up just now

[time 2 retire] 23/11/2017 14:19

Someone mopping up these ahead of next weeks results and price holding up very well. Could blast through the 4 quid mark if results are anything like expected.

GLA

[time 2 retire] 15/11/2017 23:42

Was trying to post an article i found but would not let me copy and paste, its on Interactive Investors IGR page if anyone interested.