Shares in IG Design (IGR) jumped after the creative and celebrational products seller said FY26 results will top expectations. Investors celebrated the latest positive update from the AIM-listed firm. IG Design said its revenue, profit and cash performances all exceeded estimates last year.
The market also applauded the ‘highly complementary’, earnings-enhancing acquisition of Glenart. Focused on South Africa, the UK and the USA, Glenart’s particular specialty lies in the manufacture of crackers.
More cracking news
A company with a troubled recent past, IG Design makes greetings cards, wrapping paper, gift bags and other gifting products. It also makes goods not for resale like recyclable paper bags which reduce waste in the retail industry.
Building on the positive update unfurled in February, IG Design said it has continued to experience ‘good trading momentum’. Results for the year to March 2026 are now expected to be ahead of market consensus and the board’s expectations.
Cash in the coffers
IG Design now expects to report FY26 revenues of roughly $292 million, comfortably ahead of the $282 million consensus, and adjusted pre-tax profits of about $11.5 million.
Cash has ‘significantly exceeded expectations’, said the company. In fact, year-end net cash amounted to around $72 million. That is some $16 million ahead of consensus expectations and reflects stronger-than-expected Q4 trading and disciplined working capital management.
Unsurprisingly, IG Design remains cautious in its outlook, given ongoing macroeconomic uncertainty and softer consumer confidence.
However, the board is ‘encouraged by FY26 results and the clear outperformance against expectations set earlier in the year. Together with the recently announced appointment of a group CEO, this provides a solid platform for continued progress against the group’s long-term strategic growth pillars.’
Complementary deal
IG Design also unveiled the £5.3 million acquisition of Glenart. This South African manufacturer operates within the group’s ‘Celebrate’ category and has a particular strength in crackers.
‘The board considers the acquisition a bolt-on, strategically aligned and a compelling opportunity to expand the group’s geographical presence in a complementary product offering,’ said IG Design.
Shares in IG Design soared in February after the firm issued an unexpectedly positive outlook, and the stock is rallying again today.
While it still feels like early days, if IG Design can sustain this turnaround then it could be an interesting recovery situation.
On 16 April, the group announced the appointment of Gerald Kuehr as its new CEO. Kuehr brings a wealth of experience in consumer businesses having previously held roles at Unilever (ULVR), Procter & Gamble (PG) and Partner in Pet Food.
Read the press release here: https://www.thedesigngroup.com/regulatory-news/
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