IG Design shares jump on first-half update
IG Design Group
Giftware and stationery designer IG Design said in an update on Thursday that both of its divisions, DG Americas and DG International, experienced “strong trading” in the first half.
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The AIM-traded firm said that as a result, its sales, profits, margins and cash flow were expected to be “significantly improved” on the same period last year, and also ahead of the Board's expectation for the period.
It said the main reason for the performance was that many customers had brought forward their seasonal ordering in the six months ended 30 September, so as to avoid the supply chain challenges experienced in the second half of the 2021 calendar year.
That performance reflected the “strong relationships” sustained with customers, and the ongoing demand for the group's products, the board said.
“Given the bring-forward of orders during this period, the Board believes the trading results for the full year to 31 March will have a strong first-half weighting, but overall will remain in line with the board's expectations for the year as a whole,” the directors said in their statement.
“This represents a small year-on-year improvement in profits compared to the prior financial year.
“The board's outlook continues to reflect ongoing input cost inflation and signs of a general downturn in consumer sentiment across all of our markets as a result of the tougher economic environment.”
IG Design said it would provide further details on its performance, along with an updated outlook, in its results for the six months ended 30 September on 30 November.
At the close on Thursday, shares in IG Design Group were up 7.41% at 87p.
Reporting by Josh White at Sharecast.com.