Investor Highlights

A World of Celebration

IG Design Group Plc Annual Report and Financial Statements 2018

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We are delighted to report that the year has seen our diversified business deliver very healthy profit and earnings per share growth driven by strong performance across all segments. The Group’s focus on cash generation has resulted in the business being cash positive at the year end, as well as another year of improvement in average leverage, despite a record level of capital investment and the acquisition of Biscay.

Paul FinemanChief Executive Officer



It is particularly pleasing to report that the Group has successfully mitigated the widely reported cost headwinds within the marketplace, with both gross and net margins increasing in the year. This success reflects the broad and diverse nature of our customer base, product categories and brands supported by our focus on efficiency, product mix and innovation.

Giles WillitsChief Financial Officer



Financial Highlights

A record year of financial progress

(a) Underlying fully diluted earning per share before exceptional items and LTIP charges. Fully diluted earnings per share stated after exceptional gains of 1.4p (2017: 0.4p cost) and LTIP charges of 2.7p (2017: 2.8p) is 20.5p (2017: 15.0p).

(b) Average leverage is calculated as average monthly net debt divided by EBITDA before exceptional items and LTIP charges.

Operational Highlights

Updates from our key trading regions

United Kingdom

In the UK, our re-organised business delivered 5% sales and 6% profits(b) growth. In September 2017 we commenced the manufacturing of ‘not-for-resale’ paper bags in our facilities in Wales.

Americas

In the USA, revenue grew(a) by 5% and profits(b) by 35% through discerning revenue growth. Our project to upgrade IT systems will further enhance our capacity and capability for ongoing growth.

Europe

In Continental Europe revenue grew(a) by 10% and profits(b) by 29% through sales of broader product categories to key customers. In March 2018 our new ‘state-of-the-art’ high speed printing press commenced production.

Australia

In Australia, we delivered 10% revenue growth(a) and 68% profits(b) growth reflecting continued focus on value-added services and products. In January 2018 we completed the acquisition of Biscay.

China

Record levels of gift bag and greetings cards production in China.

(a) Sales growth in local currencies. (b) Underlying profit growth is stated in local currencies, being profits before interest, tax, exceptional items, LTIP charges and management recharges.

Key Facts

From 2018 Annual Report

Profit before tax, exceptional items and LTIP charges up 32% to £21.4 million
Average leverage(a) reduced by 35% from 2.3 times in 2017 to 1.5 times in 2018
Our Group has delivered a 1.3 percentage point gross margin increase whilst sustaining a highly competitive offering
Non-UK revenues by customer destination are 73% of Group revenues
At £9.4 million, investment in fast payback capital expenditure was at record levels
Biscay acquired for £5.1 million in cash, January 2018
Commenced manufacturing of bags ‘not-for-resale’ in Wales, September 2017
Upgrading of IT systems in USA, providing enhanced future efficiencies, proceeding on time and on budget
Highly commended in the category of ‘Company of the Year 2017’ at the Employee Engagement Awards
(a) Average leverage is calculated on average monthly net debt divided by EBITDA before exceptional items and LTIP charges.

PI WORLD INTERVIEW

Full year results insight from Paul Fineman and Giles Willits.

 

A World of Celebration

Download IG Design Group Plc Annual Report and Financial Statements 2018

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