Shares in creative and celebrational products seller IG Design (IGR) soared 30% on the firm’s unexpectedly positive FY26 outlook. Revenue is now seen above the upper end of guidance while operating profit is also seen topping the consensus.
Party time
The AIM-listed group makes greetings cards, wrapping paper, gift bags, picture frames and other gifting products. It also makes goods not for resale like recyclable paper bags which reduce waste in the retail industry.
For the nine months to December 2025, the group’s performance was in line with the board’s expectations. Consequently, FY revenue is now seen between $280 million and $285 million or above the top of the previous range.
Operating profit is also expected to beat the market forecast of $9.7 million, with margins at the top of guidance. Cash generation has also been strong with FY net liquidity seen at $55-$60 million, 30% ahead of forecasts.
This cash position will be bolstered by the sale of a surplus UK warehouse which has been provisionally agreed. The firm also issued an upbeat near-term outlook for revenue growth, margins and cash generation.
The market had almost forgotten about IG Design, if the share price chart is anything to go by. Even after today’s bounce, the stock is only trading at 10% of its pre-pandemic valuation if that.
The analysts will have to upgrade their numbers, although they both have a buy recommendation on the stock already. If the firm can sustain this turnaround then it could be interesting, but it feels like early days.
Read the press release here:
https://www.thedesigngroup.com/reports-presentations/
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