IG Design profit growth driven by Impact Innovation acquisition

IG Design Group on Tuesday reported double digit increases in profit and revenue following its purchase of a gift packaging and seasonal décor supplier.

The gifting and stationery manufacturer recorded a profit before tax of £17.1m for the six months ended 30 September, 22% higher than the year before, as revenue grew by 21% to £248.4m.

The AIM-listed company hiked its interim dividend by 20% to 3.0p per share.

This financial performance was driven by organic growth and the Minnesota-based Impact Innovations acquisition, which was snapped up for £56.5m in September 2018 and led first half turnover from the Americas to jump by 40% to £183.8m

IG said it had entered the second half with good momentum and a confident outlook for the full year.

Chief executive Paul Fineman said: "Our long-established relationships with many of the world's leading and 'winning' retailers provides a strong foundation for us to meet ambitious growth targets, both organically and through an active pipeline of acquisition opportunities, whilst maintaining prudent average leverage.

"We remain focused on driving growth, maintaining our financial strength and continuing to deliver in line with expectations, whilst ensuring we continue to make the most of our many exciting future prospects."

Analysts from Berenberg said the results were very much "business as usual", but added that they continue to view the company as a quality long-term consolidation story and reiterated their 'buy' rating.

IG Group Design shares were down by 1.76% at 636.60p at 1049 GMT.