Date: Tuesday 23 Jun 2015
LONDON (ShareCast) - Gift packaging, cards and stationery group International Greetings reported a surge in profits for the year to 31 March and said it was on track to deliver double-digit earnings growth in the future.
The company said it exceeded its goals for profit generation, debt reduction and earnings per share over the year and said it was pleased to report an "excellent set of results".
Adjusted pre-tax profit increased 21% to £9.2m on sales that were up 2% at £229m as volumes of gift packaging and greetings-related products sold worldwide reached record levels. Earnings per share before exceptional items were up 29% at 10.7p.
Underlying profits in Europe in particular were up 32% after the integration of Enper BV Giftware in Holland last summer. Meanwhile, the installation of new gift bag manufacturing facilities in China is expected to be fully deployed throughout 2015/16.
Results were also boosted by major licensing wins across the group including new franchises with Disney and Universal Studios.
Cash generation was 18% higher at £17.9m, while net debt fell 20% to £29.4m.
As promised, the company also restarted paying a dividend a year ahead of schedule wit ha full-year payout of 1p per share.
"The investments we have made during the period mean we are very much on plan to deliver double digit cumulative average growth in earnings per share and we remain determined to continue to drive performance and reduce leverage," said chief executive Paul Finland.
The stock was up 2.7% at 124.82p in early deals on Tuesday.
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