Ig Design Share Discussion Threads

[rivaldo] 13/6/2018 11:19

The IC says Buy (gswredland, read down to the bottom....):



"More than paper profits at IG Design

IG Design (IGR) has revealed a marked step up in earnings despite rising input costs. Closure of paper and cardboard plants in Asia have led to a drop off in supply, accelerating price increases. But mitigating actions taken by the greeting card and gift packaging group have been effective, pushing adjusted operating profit up 33 per cent at constant currencies. This stands in contrast to more prosaic top-line growth – ergo unit profitability is on the rise. The net operating margin has climbed 140 basis points to 7 per cent over the year, but chief executive Paul Fineman sees further growth ahead, and is predicting it will reach 8 per cent in the next 12-24 months.

While the group has grown across all regions, the reasons for each areas’ performances differ. However, in general terms, the group has benefited from a move into higher-margin product lines such as gifting, stationery and creative play. Management plans to supplement the business with acquisitions where possible, consolidating its marketplaces and looking into related products it can cross-sell to existing customers. Capital investment came in at £9.4m, against £5.1m in FY2017.

Broker Cenkos upgraded its forecasts following the results announcement and now expects adjusted pre-tax profit of £24.4m in 2019, giving EPS of 24.9p (from £21.4m and 21.8p in 2018).

IC View

Taking into account the rapid growth and ballooning margin, it is unsurprising to see IG’s shares trading slightly ahead of their history and peer group average at around 17 times forecast earnings. However, with further expansion expected and strengthening operating cash flow, we reckon it's still a viable entry point for new investors. Buy."

[gswredland] 13/6/2018 07:50

Any one know what the PE is please?

[time 2 retire] 12/6/2018 23:20

The futures looking good..

IG Design Group Sold 220 Million Cards In The Last Year.

For the first time ever we sold over 220 million greeting cards in the last year,” a delighted Paul Fineman, ceo of IG Design Group revealed to PG Buzz yesterday (June 11) having just announced the group’s buoyant annual results, which covered the 12 months to 31 March 2018.

He confirmed that its greeting card sales are continuing to grow and now account for 11% of the group’s £327.5 million global turnover. Pre-tax profit was up by an impressive 51% to £19.7 million.

The group now claims to be the third largest card and gift packaging player in the world – generating retail sales of an estimated £15 billion.

Expanding from its historic business of supplying grocers with own brand Christmas cards, giftwrappings and crackers the company’s strategy to shift emphasis away from such strong seasonality into everyday has provided successful as has the broadening of its retail customer base. In the last year, only 51% of its sales were for Christmas products with sales of everyday and other seasons products almost on a par.

Sales of its single greeting cards soared by 25% in the last year while the volume of giftwrap it sells grew by 9%.
In the last year it sold 100 million single cards alone and over 1 billion metres of giftwrap having become a major supplier to the value retail varietal chains for greeting cards and other paper products.

It has been well placed to benefit from the global growth of both Aldi and Lidl, with IG’s sales with these two of the world’s largest discount retailers having grown by an “average of 95%” over the last year.

Paul told PG Buzz that its Celebrations business (into which greeting cards fall), which represents 74% of the company’s sales remains “a key area of growth” with the coming year likely to see a further shift into everyday sales and minor occasions.

Partyware represented 5.5% of sales in the last year while licensed merchandise across all products accounted for 13% of total sales.

The group’s acquisition of Australian greeting card company Biscay Greetings and US-based Langs have now been fully integrated. The latter has enabled IGD to grow its calendar business, which saw some 15 million units being sold in the last year, up by 20% on the previous year.

IG Design Group sells products to 10,000 customers, who collective account for 200,000 stores in 80 different countries.

hxxps://www.pgbuzz.net/ig-design-group-sold-220-million-cards-in-the-last-year/

[jeff h] 11/6/2018 18:50

Sounds like another acquisition on the cards (excuse the pun!):-

"Analyst at Berenberg said that the management team had a "clear appetite for acquisitions" which could be beneficial to earnings by 2020."

"This, together with carefully considered M&A opportunities supported by an ever strengthening balance sheet, provides a very bright future."

[jeff h] 11/6/2018 18:43

THE ANALYSTS’ TAKE

‘We are increasingly confident that IG Design can continue to invest, improve efficiency and optimise procurement to consequently deliver earnings growth in the medium term,’ enthuses Berenberg this morning. ‘We therefore upgrade our earnings per share (EPS) numbers by 7.6%/8.5%/13.4% for full year 2019/2020/2021 respectively,’ says the investment bank, sticking with its ‘buy’ rating but upgrading its price target from 500p to 520p.

Meanwhile, Cenkos maintain its ‘buy’ recommendation ‘to reflect IG Design’s next phase of double-digit growth underpinned by high cash generation’. The brokerage raises its full year 2019 EPS forecast by 5.3% to 24.9p, ups its dividend estimate 11.5% to 7.25p and increases its net cash estimate by the best part of 16% to £9.5m.

[time 2 retire] 11/6/2018 16:26

Berenberg Bank reiterates buy recommendation with new target price of £5.20

[time 2 retire] 11/6/2018 16:25

Today in summary by proactiveinvestors...

IG Design Group reports record profits for full-year and hikes final dividend
Share
14:53 11 Jun 2018
The AIM-listed greeting card manufacturer reported pre-tax profits of £19.7mln, up 51% on the prior year

IG Design Group PLC (LON:IGR) has reported record profits in its full-year results, which were accompanied by a hike in its final year dividend.

The AIM-listed greeting card manufacturer reported pre-tax profits of £19.7mln, up 51% on the prior year, while revenues climbed 5% to £327.5mln.


Final Dividend hiked 45%
The firm also hiked its final dividend 45% to 4p, while capital investment during the year nearly doubled to £9.4mln from £5.1mln the year before.

In its outlook, the company said a strong order book and growth across all its regions meant it had opportunities to create growth in the new financial year.

Paul Fineman, IG chief executive, said: “Whilst we have achieved record levels of sales and profits, we have also invested for the future with fast payback capital investment of just over £9.4 million, demonstrating our confidence in the future and our determination to retain a distinct competitive advantage and to be the preferred choice for our customers and all stakeholders.

He added: “With the effective combination of our product and brand portfolio, together with an array of value adding services, we remain very well placed to continue to grow organically, across all regions and channels. This, together with carefully considered M&A opportunities supported by an ever strengthening balance sheet, provides a very bright future.”

In late-afternoon trading Monday, IG shares were up 4.5% at 456p.

[time 2 retire] 11/6/2018 13:56

I just watched the piworld video and a brilliant watch fair play, this company is in very good hands in Fineman and Willets.

[gswredland] 11/6/2018 09:24

Just bought back in . Results look good

[rivaldo] 11/6/2018 08:45

Good results and a confident outlook. Excellent stuff:

"With a strong order book in place and a positive start to the new financial year, we are excited about the opportunities to deliver further growth in 2018/19."

Great to see the upgrades from Progressive Research too. With more acquisitions likely to follow the apparently already successful Biscay purchase, we should see further upgrades during the course of the year.

Here's a direct link to the new note:

[tomps2] 11/6/2018 08:32

IG Design Group (IGR) Full year results 2018 video


IG Design Group CEO Paul Fineman and CFO Giles Willits, talk about the Groups’ full year results to 31st March 2018.
Paul Fineman, CEO.
Introduction – 00:18
Regional performance – 1:30
Giles Willits, CFO.
Financial highlights – 2:50
Efficiencies – 3:36
Paul Fineman, CEO.
Strong performance in retail – 4:39
Investor outlook – 6:19

[jeff h] 11/6/2018 08:11

Progressive Equity quick off the mark with new forecasts:-

"IG Design Group have today announced final results for FY2018. All
the financials were in line with our expectations with fully diluted and
adjusted EPS of 21.8p. The final dividend of 4.0p is 0.5p higher than
our forecast. The Group continued with its strategy of growth through
organic product and market diversification, combined with strategic
M&A. This fuelled underlying revenue growth of 5.8% and EBIT margin
expansion to 7.0%. The Group’s strong market position combined
with a target adjusted EBIT margin of 8% and a more advantageous
effective tax rate of 24% (from 28.3%), has led us to upgrade our
forecast EPS to 25.0p from 23.6p for FY2019E and to 27.3p from 25.5p
for FY2020E. We also increase our dividend forecast to 7.25p from
6.5p for FY2019E and 8.5p from 7.5p for FY2020E."

Full note available from them

[pugugly] 11/6/2018 07:39

First glance results look excellent - better than I expected - Turnover growth solid - Profits up
" Underlying operating profit* increased by 30% to £22.8 million (2017: £17.5 million)

- Up 33% at like-for-like exchange rates

· Underlying profit before tax* up 32% to £21.4 million (2017: £16.3 million)

- Gross margin* is up 0.8 percentage points to 21.4% (2017: 20.6%)

- Net operating margin* is up 1.4 percentage points to 7.0% (2017: 5.6%)

· Profit before tax up 51% to £19.7 million (2017: £13.0 million)

· Underlying fully diluted earnings per share* up 20% at 21.8p (2017: 18.2p)

- Fully diluted earnings per share up 37% at 20.5p (2017: 15.0p)"

[time 2 retire] 08/6/2018 10:04

I totally agree edale, it's just the mm's playing games again, price has been held back for a while now and should move up significantly if results are as expected, time will tell.

[edale] 08/6/2018 09:38

I re-read the April trading update yesterday and can't see any reason for the recent fall and would expect the price to start to climb again either today or Monday. If you look at the 5 year chart this sort of drop and the strong recovery has occurred on several occasions. Results Monday should be good and hopefully we will get a positive statement re the coming year.

[time 2 retire] 08/6/2018 07:58

I wonder if this last trading day before the results will be a "blue" one, it's been a sea of "red" lately...

[time 2 retire] 31/5/2018 14:57

RNS just out explains yesterday's drop, allowed Octopus to snap up a few more on the cheap with maybe a few more on the cards given todays unwarranted drop(more buying than selling) DYOR

[panic investor] 30/5/2018 14:37

All stocks have sold off

[time 2 retire] 30/5/2018 14:23

I'm not understanding why peeps would be selling 7 trading days before the results when we've been pre warned that everything is on track...

[rivaldo] 21/5/2018 23:06

Nice close today - looks like new highs.

[time 2 retire] 17/5/2018 12:49

Price being held back AGAIN

[rivaldo] 15/5/2018 08:50

For the record, SCSW updated on IGR as follows in its May issue 9 days ago:

"IG Design

(Sharewatch) IG’s update confirmed that H2 trading saw an acceleration over H1. Full year sales and profit are expected to be in line with estimates at +5% to £326m and +24% to £21m, respectively. Eps forecast is 21.4p.

A continued evolution in IG’s sales mix towards higher margin product categories (eg. single greetings cards) together with a record level of capex/manufacturing synergies and commercial synergies has aided margin expansion. Having sold a surplus site during H2, it has moved to net cash and further acquisitions continue to be sought. Berenberg’s forecast is eps of 23.2p for the current year to end March ‘19 and 24.9p next year.

As an example, the broker notes that if IG were to deploy £33m firepower on M&A at 6x EBITDA, next year’s eps would rise by 14%, relative to its base-case. Await results on 11 June."

[rivaldo] 10/5/2018 13:39

Agreed. And more new highs today....

[pen8] 05/5/2018 05:54

Encouraging new highs and one to sit and and let is rise up over the years ahead .excellent progress .

[time 2 retire] 04/5/2018 19:18

A nice few after hour trades showing up here, Tuesday could see the rise continue. Maybe we'll get another mention in tomorrows SCSW too which could help Tues share price