IG Design posts record annual profit and revenue

In the year to the end of March 2018, pre-tax profit increased 51% to £19.7m on revenue of £327.5m, up 5% on the previous year. The final dividend was lifted 45% to 4p per share, which together with an interim dividend of 2p took the total dividend for the year to 6p per share, up 33%.

Revenue in the Americas, which account for 37% of overall group sales, was up 4.8% to $158.8m, reflecting growth across all channels. In the UK and Asia, which make up 38% of group revenue, sales were up 5.4% to £123.3m and the company said it had seen a return to profit growth, with encouraging momentum across many areas of its UK-based business.

IG said that while its share of the UK market for gift packaging remains substantial there is still scope for profitable growth across this and all other categories, both online and through 'brick and mortar' retailers.

"This growth opportunity is underpinned by the excellent performance of our gift wrap and paper bag manufacturing operation in Wales and card, bag and cracker production facility in Huizhou, China," it said.

In Europe, which accounts for 16% of sales, revenue was 10% higher at €58.5m, with sales of bespoke gift products especially strong and on-trend photo frames and photo-based gift accessories achieving record volumes.

Chief executive officer Paul Fineman said: "We are delighted to report that 2017/18 has seen our well-diversified business deliver a very successful overall performance, but more importantly, on-going momentum and opportunity for 2018/19 and beyond.

"With the effective combination of our product and brand portfolio, together with an array of value adding services, we remain very well placed to continue to grow organically, across all regions and channels. This, together with carefully considered M&A opportunities supported by an ever strengthening balance sheet, provides a very bright future."

At 0940 BST, the shares were flat at 436.05p.