IG Design FY revenues up, warns of 'significant increase' in exceptional costs
Greeting cards company IG Design said on Thursday that full-year revenues were up approximately 10% year-on-year, but warned of a "significant increase" in exceptional costs as a result of coronavirus-related provisions.
IG said revenues were boosted by four weeks of trading from CSS Industries, following the completion of the acquisition early march but said revenues appeared to have been impacted by at least £7m as a result of Covid-19.
The AIM-listed firm also said it would continue to review its final dividend payment for the financial year ended March 2020, stating that although it was committed to the payment of dividends, it believes that the maintenance of a strong balance sheet during the pandemic-fuelled instability was of "the upmost importance".
IG also noted that its manufacturing sites in the US, UK, China and Europe had all recommenced production, after a short suspension in order to implement appropriate health and safety protocols.
"Although revenues will remain ahead of FY2020 as a result of the full-year effect of the CSS acquisition, there will be a material reduction in expected group revenue for FY2021," said IG.
"The group continues to forecast operating within its current banking facilities. Assuming a return to more normal sales volumes by the end of the FY2021, the Board would expect significant year on year growth in both revenues and earnings in FY2022."
As of 1030 BST, IG Design shares were down 5.07% at 524p.