IG Design on track to meet full-year market expectations

AIM-listed IG Design said on Tuesday that it is on track to deliver against full-year market expectations after the first-quarter was in line with both management and market views.

The company said sales in the first quarter, together with overall customer order levels already received for the balance of the year, are in line with management expectations.

IG Design said sales volumes continue to grow through its broadening product offering and to its extended customer base. New business includes sales to regional grocery and drug stores in the USA. Exports to Mexico are on track to double and exceed $2m in the year.

Operational and commercial integration of the recently acquired Lang Companies Inc. is proceeding well with the business performing in line with management expectations. In addition, synergy opportunities have already been identified and should be largely realised during 2017/18.

IG Design said the phased programme of investment in its US-based gift wrap production facilities is already benefiting the group with enhanced levels of production efficiency being achieved.

In Australia, the business is trading in line with expectations, with growth especially strong in the party ware category.

IG noted the award of a major new contract for the supply of every day greetings cards, with an estimated annual volume of over 10m cards.

The group has also been awarded new licensed categories across all Disney, Marvel and Star Wars franchises.

In the UK, growth has been augmented by increased volumes of party ware products, while sales of licensed stationery for the ‘back to school’ period include new licenses, such as Paw Patrol, Secret Life of Pets and Finding Dory franchises.

In Continental Europe, the group has achieved record sales and production levels of its core gift packaging product categories, across its existing customer base and to new customers throughout Europe.

Chief executive officer Paul Fineman said: "The group has made a most encouraging start to the year with our order book at record levels and an excellent blend of sales activity across categories, regions and brands, both with new and existing customers.

"We are also pleased to have 'hit the ground running' with the integration of our new business in the US - Lang Companies Inc. Early indications are positive and we are confident of future growth opportunities. This is particularly pleasing alongside the robust organic growth that we are achieving throughout the group."

At 1107 BST, shares were down 2.2% to 236.20p.