LONDON (ShareCast) - (Sharecast News) - IG Design Group posted sharply lower interim revenues and profits on Tuesday, after US tariffs and softer UK demand weighed heavily on the specialist celebration designer.
Revenues at the AIM-listed business, which focuses on wrapping paper, greeting cards and crafting, slid 13% to $131.4m in the six months to 30 September. Adjusted pre-tax profits tumbled to $5.3m from $12.3m.

IG Design said revenues had been hit by softer UK demand, the impact of US tariffs, European pricing pressures and timing of shipments moving into the second half.

The company also offloaded its troubled US arm in May, after US tariffs and the country's weak retail environment hampered efforts to turn the business around.

However, looking to the full year and IG Design remained upbeat.

It said it had a strong order book visibility entering the second half, with 96% of full-year forecast sales.

It also reaffirmed full-year guidance for revenues of between $270m and $280m, and an adjusted operating margin of 3% to 4%. The margin was 4.3% at the half-year.

Stewart Gilliland, interim executive chair, said: "While the macro environment remains mixed, we know exactly what we need to do to continue strengthening the business.

"We enter the second half as a less complex business that last year, with confidence in our business, stable customer relationships and a defined pathway to further improvement in profitability and long-term value creation."

Gilliland became interim executive chair earlier this year, after chief executive Paul Bal stepped following the disposal of DG Americas.

IG Design said the search for Bal's successor was ongoing.

As at 1100 GMT, the stock had put on 1% at 46.35p, having earlier reached just shy of 50p.

Mark Photiades, analyst at Canaccord Genuity, called it a "robust" financial performance amid challenging market conditions.

He continued: "Near-term headwinds persist, but we believe IG Design is now better positioned as a simpler, more profitable, cash-generative business with a robust and stable platform for future growth."

Canaccord Genuity, which has a 'buy' rating on the stock, is IG Design's nominated advisor and broker.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE