LONDON (ShareCast) - (Sharecast News) - Stationery and gifting products designer IG Design Group reported a 40% improvement in revenue in its full-year results on Tuesday, to $873.2m (£619.01m), which it said was driven by a full year of trading at CSS since its acquisition.
The AIM-traded firm said like-for-like revenues, excluding CSS, were down 5%, reflecting the impact of Covid-19 across the group.

Adjusted profit before tax was up 4% at $37m for the year ended 31 March, with reported profit before tax rising $15.6m over the prior year.

Adjusted diluted earnings per share reduced in line with market expectations, to 25.9 cents from 32.7 cents, which the board said was driven primarily by an increase in the number of shares in issue, following its equity raise for the acquisition of CSS.

Cash generation was described as "strong", with an average leverage of nil strengthening its final position at year-end.

The board recommended a final dividend of 5.75p per share, delivering full-year distributions of 8.75p, in line with the prior year and reflecting that strong cash generation.

Looking ahead, IG Design announced a new growth plan with its results, targeting revenues of at least $1.5b, with 30% organic growth and the balance from mergers and acquisitions.

That was set to lead to a "doubling" of the group's adjusted EBITDA under the growth plan.

Assuming current progress was maintained in the 'reopening' of regional economies, the directors said they expected to deliver a "strong" financial performance in the current 2022 financial year.

"In what has been a uniquely challenging year, I am very pleased with what the group has achieved," said chief executive officer Paul Fineman.

"We have continued to deliver for our customers, not only on time and in full, but also with agility and whilst providing new, innovative products.

"We have made great strides integrating CSS into the business and unlocking the synergies, and lastly, we have delivered a financial performance in line with expectations for our shareholders."

Fineman said that over several years, IG Design had become known as an "ambitious growth company", and in order to maintain that reputation it needed to continue to set higher goals.

"This is why I am delighted to be announcing today our growth plan, which includes delivering revenue over $1.5bn and doubling our adjusted EBITDA.

"Much of this growth is set to come from merger and acquisition activity, which we have never been better positioned for as the key industry consolidator.

"Our management team has built a strong track record of successful acquisition and integration, and our scale and market position represent a compelling offering for businesses within our industry."

Fineman said the company was now in a "strong" financial position, with zero average leverage.

"Numerous organic initiatives are also well underway that will help us reach our targets, including the acceleration of our e-commerce offering, reinvigoration of our craft brands and products, and the expansion of our sustainable ranges.

"Whilst there remain challenges ahead, many of them the ongoing impact of Covid-19, the hard work and creativity of our teams gives us great confidence in the future."

At 0911 BST, shares in IG Design Group were down 2.09% at 563p.

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