IG Design Group (IGR)

Sector:

Household Goods

Index:

FTSE AIM All-Share

146.00p
   
  • Change Today:
      3.50p
  • 52 Week High: 235.00p
  • 52 Week Low: 111.00p
  • Currency: UK Pounds
  • Shares Issued: 96.16m
  • Volume: 128,337
  • Market Cap: £140.40m
  • RiskGrade: 195

IG Design warns over full-year earnings

By Michele Maatouk

Date: Wednesday 26 Jan 2022

LONDON (ShareCast) - (Sharecast News) - IG Design tumbled on Wednesday after it warned that full-year earnings would be "significantly" below market expectations and that there would be no final dividend, citing higher costs and lower craft sales in the final quarter.
The designer and manufacturer of packaging and stationery said it experienced further supply chain delays and headwinds in the nine months to the end of December. This meant that a significant volume of seasonal orders were processed and shipped in a shorter time window than previously envisaged, thereby incurring fulfilment-related cost premiums.

Meanwhile, craft sales in the US fell below the higher prior-year Covid-19 levels, with this trend expected continue into the final quarter of the year.

As a result, the US business has incurred "significant" supply chain costs, it said, specifically in relation to freight, labour and raw materials. This, alongside lower craft revenues, has resulted in group adjusted operating margins of 4%, down 460 basis points on the year.

"This year to date performance, together with the expectation of the continuation of the cost headwinds and lower craft sales in the final quarter, means the group now expects its full year FY22 adjusted operating profit to reduce to a breakeven position, resulting in full year earnings significantly below current market expectations," IG Design said.

The company also said there will be no final dividend payment for the current year, although beyond FY22 it plans to continue paying dividends in line with its existing policy.

Chief executive officer Paul Fineman said: "To say that I and the whole board are disappointed with our financial performance over FY22 to date is a huge understatement. Without any end to the supply and cost challenges in sight we cannot simply wait for these external challenges to improve. We have therefore instigated a review of our US operations, analysing our cost base and identifying improvements that can be made quickly.

"We remain confident in our long term strategy but with the current challenges unlikely to ease in the short term we plan to undertake this review to ensure it remains appropriate. We will update on progress over the next few months."

At 0910 GMT, the shares were down 52% at 122p.







Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

IG Design Group Market Data

Currency UK Pounds
Share Price 146.00p
Change Today 3.50p
% Change 2.46 %
52 Week High 235.00p
52 Week Low 111.00p
Volume 128,337
Shares Issued 96.16m
Market Cap £140.40m
RiskGrade 195

IG Design Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
47.77% above the market average47.77% above the market average47.77% above the market average47.77% above the market average47.77% above the market average
27.27% above the sector average27.27% above the sector average27.27% above the sector average27.27% above the sector average27.27% above the sector average
Price Trend
20.79% above the market average20.79% above the market average20.79% above the market average20.79% above the market average20.79% above the market average
16.67% above the sector average16.67% above the sector average16.67% above the sector average16.67% above the sector average16.67% above the sector average
Income
3.35% below the market average3.35% below the market average3.35% below the market average3.35% below the market average3.35% below the market average
41.18% below the sector average41.18% below the sector average41.18% below the sector average41.18% below the sector average41.18% below the sector average
Growth
71.86% below the market average71.86% below the market average71.86% below the market average71.86% below the market average71.86% below the market average
63.64% below the sector average63.64% below the sector average63.64% below the sector average63.64% below the sector average63.64% below the sector average

What The Brokers Say

Strong Buy 2
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 3
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

IG Design Group Dividends

  Latest Previous
  Interim Final
Ex-Div 09-Dec-21 09-Sep-21
Paid 19-Jan-22 14-Oct-21
Amount 1.25p 5.75p

Trades for 31-Oct-2024

Time Volume / Share Price
16:10 1,702 @ 148.70p
16:09 588 @ 145.20p
16:06 2,017 @ 148.70p
16:05 60 @ 148.70p
15:58 2,787 @ 148.70p

IG Design Group Key Personnel

CEO Paul Bal
CFO Rohan Cummings

Top of Page