LONDON (ShareCast) - (Sharecast News) - Gift wrap and greeting card manufacturer IG Design Group warned on Friday that full-year profits would be "well below" last year as "challenging market conditions" continued into H2.
IG Design said overall revenues were expected to be roughly 10% lower year-on-year, with both of the company's divisions expected to report declines, while adjusted profits were now expected to be "significantly impacted".

The AIM-listed group stated FY profits were pegged to be around break-even, and well below last year, as well as being significantly below current market expectations of $32.0m.

IG Design also noted that while it was on track to deliver its strategic expectations of returning margins to above proforma pre-pandemic levels of at least 4.5% in FY25, this will now not be realised and said its aspirations "will have to be re-planned and re-set".

"Under these challenging circumstances, at this stage, and until the recent events are more fully assessed, the board is no longer able to provide guidance for the years beyond FY25," said IG.

"Following the recent trading performance of DG America, the group would now expect to write down the carrying value of its DG Americas division as part of its FY25," added IG.

As of 1040 GMT, IG Design shares had sunk 58.60% to 59.0p.





Reporting by Iain Gilbert at Sharecast.com

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