Pulled-forward seasonal orders give group ‘significantly improved’ profits and cash flow
Early seasonal orders have helped greeting card, giftwrap and cracker giant IG Design Group pull in more money than expected over the summer.
With retailers pulling forward their seasonal orders to avoid a repeat of last year’s supply-chain issues, IG Design Group reported “strong trading” between April and September when it released its trading update yesterday, 20 October.
The statement added: “As a result, the group’s sales, profits, margins and cash flow are expected to be significantly improved on the same period last year, and also ahead of the board’s expectation for the period.”
The main sales driver was cited as supermarkets and shops placing orders for crackers, wrapping paper and greeting cards earlier than usual. Last year was blighted by Covid-related factory closures in Asia and a shortage of cargo ships, which hit deliveries.
IG Design is the world’s largest producer of celebrations products, including greeting cards, wrap, Christmas crackers, gift bags and partyware, with its main UK factory in Wales and head office in Newport Pagnell, alongside operations in the Americas, Netherlands, Australia, and Asia.
Following the surprise departure due to personal reasons of long-time ceo Paul Fineman on 1 March with just a week’s notice after 17 years with the business, Lance Burn is now leading the group on a day-to-day basis as chief operating officer.
The statement added: “This performance reflects the strong relationships that have been sustained with customers and the ongoing demand for the group’s products. Given the bring-forward of orders during this period, the Board believes the trading results for the full year to 31 March 2023 will have a strong first half weighting, but overall will remain in line with the Board’s expectations for the year as a whole. This represents a small year-on-year improvement in profits compared to the prior financial year.”
Full-year profits are likely to stay around the £3.87million ($4.3m) previously suggested, up on last year’s £3.42m ($3.8m), and further details on performance, along with an updated outlook, will be set out with the period’s results which will be published on 30 November.
Top: IG Design is the world’s biggest producer of celebrations products
