IG Design's profits leap after seasonal acquisition

IG Design Group reported on Tuesday that its interim profit increased following the recent purchase of Minnesota-based Impact Innovations.

The gift packaging and greetings card maker’s profit before tax for the six-month period ended 30 September stood at £14m, up by 48% from the same period the year before, as revenue increased by 23% to £205.2m.

At 30 September, cash and cash equivalents stood at £1.6m, down from £2.3m at the same point last year, while the interim dividend increased by 25% to 2.5p per share.

Paul Fineman, chief executive of IG Design, said: "Our overall performance during the first half of the year has been particularly pleasing. Alongside the completion of a milestone acquisition in the USA, we have seen robust organic growth particularly in higher margin product categories and an excellent return on investment coming through from the many efficiency initiatives undertaken."

Excluding the impact of gift packaging and seasonal décor provider Impact Innovations, which was acquired for £56.5m in August, sales increased by 4% and profit before tax jumped by 38%.

"We go into the second half with a record order book and meaningful operational and commercial initiatives in full swing throughout the group. As a result, we are pleased to announce the group's full year forecasted earnings are anticipated to be ahead of market expectations. The board is confident that our stakeholders should expect more of the same going forward," said Fineman.

IG Design’s shares were up 1.99% at 576.25p at 1535 GMT.