IG Design Group (IGR)

Sector:

Household Goods

Index:

FTSE AIM All-Share

83.00p
   
  • Change Today:
      15.00p
  • 52 Week High: 565.00
  • 52 Week Low: 46.60
  • Currency: UK Pounds
  • Shares Issued: 96.37m
  • Volume: 949,250
  • Market Cap: £79.98m
  • 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.







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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 83.00p
Change Today 15.00p
% Change 22.06 %
52 Week High 565.00
52 Week Low 46.60
Volume 949,250
Shares Issued 96.37m
Market Cap £79.98m
RiskGrade 195

IG Design Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
89.54% above the market average89.54% above the market average89.54% above the market average89.54% above the market average89.54% above the market average
52.00% above the sector average52.00% above the sector average52.00% above the sector average52.00% above the sector average52.00% above the sector average
Price Trend
97.48% below the market average97.48% below the market average97.48% below the market average97.48% below the market average97.48% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Income
29.05% above the market average29.05% above the market average29.05% above the market average29.05% above the market average29.05% above the market average
10.00% above the sector average10.00% above the sector average10.00% above the sector average10.00% above the sector average10.00% above the sector average
Growth
35.55% below the market average35.55% below the market average35.55% below the market average35.55% below the market average35.55% below the market average
25.93% below the sector average25.93% below the sector average25.93% below the sector average25.93% below the sector average25.93% below the sector average

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 28-Jun-2022

Time Volume / Share Price
13:19 240 @ 82.00p
13:19 5 @ 84.00p
13:19 2,000 @ 82.15p
13:17 2,000 @ 82.15p
12:54 247 @ 82.90p

IG Design Group Key Personnel

CFO Paul Bal

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