Ig Design Share Discussion Threads

[wall street trader] 20/6/2023 08:09

yes me too I am looking to add so will look at some technical areas to buy more

[bubloo] 20/6/2023 08:04

I see it trending lower with no near term news

[wall street trader] 20/6/2023 08:02

very little activity here - have turned a profit so expect this to recover well from here

[time 2 retire] 19/6/2023 14:48

1471,
i take very little notice of the UK positions these days, USA is where its happening and they seem to be turning a corner plus their economy doing much better than our tory "I avnt a clue" led government.

The write down has already been touted in the past so I'm hoping it's just the one off and we move forward from here.

I read in the past also that we're looking at restarting the divi this H1 so I'm interested to see if any forward guidance given on this in the morning.

[darrin1471] 19/6/2023 14:24

I'm not expecting anything positive for the rest of this year.

"Due to the recently deteriorated trading, and very limited pricing expectations for Christmas 2023 in the United Kingdom, the Group is likely to incur a one-off, non-cash write-down to the historic goodwill value associated with certain businesses in that market. The Directors expect this to significantly impact the reported results for
the year"

[time 2 retire] 19/6/2023 13:59

Full year results in the morning, I hope we've finally turned a corner....

[darrin1471] 05/6/2023 16:23

For reference, the PREVIOUS rcf details from the 2022 annual report:

As previously announced, on 1 June 2022 the Company extended the term of its existing banking agreement to 31 March 2024. As part of this extension, covenants have been
revised for the period to 31 March 2023. The amended facilities comprise:
• a revolving credit facility (‘RCF A’) which has reduced from $95.0 million to $90.0 million; and
• a further flexible revolving credit facility (‘RCF B’) with availability varying from month to month of up to a maximum level of £92.0 million (reduced from a maximum level of £130.0 million)
Banking and legal fees associated with the amendment and extension of the facility totalled c.$1 million

[se81] 05/6/2023 15:27

Ah ok- some details from progressive

IG Design has announced a successful and favourable outcome to the refinancing of its lending facilities. The new arrangement replaces the previous revolving credit facility (RCF) agreement from 2019, which was subsequently renegotiated in 2022. The new three-year facility is for $125m through an Asset Backed Lending (ABL) structure. This flexes in line with the group’s US receivables and provides ampleheadroom to finance the key working capital needs over the duration of the facility. In a world of risingcentral bank interest rates,thelower quantum of the facility coupled with the lowermargin than the previous facilityshould help managethe direct finance chargesassociated with the facility,as well as providesavingsinnon-utilisation fees.

New lending facilities−a successful outcome. IG Design has announced the successful renegotiation of its debt facilities after a thorough and rigorous process to secure the most appropriate arrangement to best suit its financing requirements. The new facility has been agreed with (existing relationship) providers HSBC and NatWest for $125m, together with an extension of its overdraft facility already provided by HSBC. The new facility is an ABL structure, which replaces the previous RCF structure, and is secured with an all-assets lien in the USAand an all-assets security in the UK.

Facility terms−lower margin secured. The new facility carries an initial bank margin of 1.75% to2.25% over the forward-lookingterm rate based on the US Secured Overnight Financing Rate (SOFR), which stood at 5.08% on 1June. The margin delivers a markedsaving against the previous 2.5% negotiated on the extension of facilities in 2022, which was set to rise to 3.0% from June 2023 until March 2024. Given the long and careful process of renegotiation, which has included the fall-out of the Silicon ValleyBank situation in the US banking arena, the favourable outcome is to be applauded and should be well-received by investors.

Next newsflow − FY23 full-year results. The group is scheduled to announce its full-year results for FY23 on Tuesday 20 June. This will include full details of the new financing arrangements. Having announced the appointment of its new CFO, Rohan Cummings,in early May, investor focus will likely be on operational progress, along with any articulation of updated strategic direction to deliver the group’s longer-term goals

[allstar_07] 05/6/2023 15:20

Lower margins, i presume not lower rates

[se81] 05/6/2023 14:28

Refinanced at a lower rate? Thats pretty impressive- how have they managed that?

[rcawthra007] 02/6/2023 10:23

Blackhorse, please don't come back on here you absolute bellend.

[blackhorse23] 01/6/2023 17:19

Switched to CURY , excellent timing , will be reversing now

[time 2 retire] 01/6/2023 11:08

Death by a thousand cuts here!
At this rate we'll be back at penny stock status by time of the results but hey ho, have been here before!
I'll continue to hold.

[wall street trader] 30/5/2023 10:10

I sliced half mine at the recent top ( good timing for once)have bought them back today

[volsung] 22/5/2023 11:04

Topped up here.
Due a wee rise

[darrin1471] 19/5/2023 20:18

ottrott. I happy to bounce ideas.
Previous high of around £8 was built on clearing debt, growth and the prediction of future growth. This is now a recovery stock without any growth currently. I was looking to reduce between £2 and £4 on execution of the previous plan.
I still think £4 over 3-4 years is doable if all things remain equal, which they wont.
However the next 6 months has headwinds vs last year and what was behind the "recently deteriorated trading, and very limited pricing expectations for Christmas 2023 in the United Kingdom".
IGR fell nearly 50% after 08/22 highs and is today 20% off YTD highs.
"Lance Burn has agreed to remain in role as Interim Chief Operating Officer through to 31 October 2023". What happens then? How much of the US management has been changed and are any of the customer relationships effected by the change in US personnel?
"management's aspiration to restore pre-Covid operating profit margins by the end of FY25". That is "end of FY25" which by my reading is around 01/01/2025, for sales taken for delivery in Christmas 2025. Adjusted operating margin was 7.3% in FY 2019.
Lots of outlook clarification needed on June 20th and during the Q&A.

[ottrott] 19/5/2023 17:15

darrin1471: "FY24 to present demand and pricing challenges...Nevertheless, it expects to make progress towards its FY25 aspiration." If op margin moves from the present 1.8% towards the pre covid 6% that will have a dramatic effect on profitability. If this turns out to be the case then even if H1 24 revs are lower than H1 23, profits are likely to be higher.
I think Lance Burn and the present management were singing from the same hymn sheet so see no change in the strategy of bringing DGA op margins in line with DGI. In fact in the last presentation the CEO suggested that margins in the US should in theory be higher than DGI.

So in summary I think it is the change in margins not rev that is most important here. That's what I'll be looking at on 20th June.

I guess time will tell. Good luck anyway.

[darrin1471] 19/5/2023 14:51

I had intended to top slice before the end of year update, but took my eye off the ball as the price kept on rising.
Results for YE23 were slightly better than expected. We knew the FY23 was weighted to the first half due to the early delivery of Christmas orders.
What concerned me was the outlook. "FY24 to present demand and pricing challenges". This is concerning because orders will already be in for Christmas 2023. They are not forecasting but reporting future sales. Supply chain bottlenecks have been resolved so there has to be a risk that early H1 revenue will fall back to their normal position in H2.
H1 YE24 results and profits are likely to be significantly lower than H1 YE23.
With a new CEO and CFO they will be working on a new strategy. I liked the old strategy being executed by Lance Burn, so I see a potential risk there.
Having reflected on the above I feel IGR could drift lower for the rest of the year and have sold IGR.
I will be watching IGR closely and may jump back in if I have made the wrong call.
Good luck all.

[darrin1471] 19/5/2023 13:51

virtual presentation and Q&A for investors at 14:00 on 20(th) June 2023.

[tomps2] 19/5/2023 09:05

IG Design Group (IGR) Full Year results webinar

IGR Chair, Stewart Gilliland and CEO, Paul Bal will present Full Year results for the year ended 31 March 2023, followed by Q&A.

Register here: bit.ly/IGR_FY_results_webinar

[darrin1471] 05/5/2023 08:01

"Appointment of Rohan Cummings as Chief Financial Officer, effective from 3(rd) July 2023"

Paul Bal and Rohan Cummings are likely to of known of each other as Paul was running the international drinks business Stock Spirits at the same time as Rohan was CFO at Asahi Europe and Asahi International.

[darrin1471] 04/5/2023 09:33

Since November 2022 Canaccord have moved from 5% to 16%
About 50% of IGR held by Hedlund, Canaccord, Octopus and Fidelity.

[time 2 retire] 04/5/2023 07:09

CANACCORD GENUITY added nearly another million shares to their holding.