Design Group Share Price (IGR)

Nice feature on Citywire this morning re Octopus' stake increase:

Https://citywire.co.uk/funds-insider/news/five-shares-the-pros-are-buying-and-selling/a1263568?ref=citywire-money-latest-news-list#i=4

"IG Design (IGRI)

Who’s trading? Citywire AAA-rated Richard Power

The trade: Octopus’ micro-cap expert upped his stake in in greeting card and gift wrap maker IG Design Group from 9.2% of the shares to just over 10% worth £46 million at a share price of 589p

How have the shares performed? The stock is 146% higher over the last three years and is just off an all-time record high of 620p.

What does the company say? Power has rapidly upped his exposure as the share price has climbed this year, as an ambitious foray into North America created the world’s largest gift wrapping business and helped deliver a 37% increase in revenue. Earnings per share climbed 33% last year.

What’s the outlook? City brokers have rapidly revised their forecasts higher over the last year as overseas acquisitions helped boost organic revenue growth of almost 10%, with the median target price rising from 520p to 740p. Despite the speed of this year’s appreciation that means a further 26% rerating is predicted."

Https://citywire.co.uk/funds-insider/news/the-expert-view-bp-diploma-and-chesnara/a1262887

"IG Design a ‘multi-year winner’, says Berenberg

Berenberg analyst Owen Shirley believes greeting cards business IG Design Group (IGR) is a ‘multi-year winner’ thanks to its consolidation of the global gifting market.

He maintains a ‘buy’ recommendation on the stock and a target price of 680p. The shares were trading at 591p yesterday.

A trading update from IG revealed progress across a number of its strategic priorities.

‘Most notably, the company is scaling the US gifting business, capturing the UK paper bag opportunity and continuing to improve its balance sheet strength, which should provide further firepower for accretive mergers and acquisitions,’ said Shirley.

The takeover of Impact Innovations in August 2018 has helped with plans for scaling up its US business, along with an ultra high-speed printing press which is being installed in Memphis in November. IG also agreed a distribution deal with one of the US’s largest retailers for its 1,500 stores nationwide.

In the UK, it invested in its first paper bag manufacturing line at a factory in South Wales. Its ‘printing and design expertise combined with its operational capabilities, have helped it to gain significant traction in a market that remains relatively nascent, following the ban on free plastic bags in the UK in late 2015’ said Shirley.

Demand has been so significant that a second manufacturing line is to launch in the second half of the year and consideration for further investment is already underway."

Yet another excellent trading update - can't ask for more:

Https://uk.advfn.com/stock-market/london/ig-design-IGR/share-news/IG-Design-Group-PLC-Trading-Update/80614476

Crucially, Xmas supplu must have gone/be going extremely well to enable the CEO to say

"The momentum throughout the business continues apace alongside good forward visibility of our order book going into the remainder of the year".

And all of this bodes very well too:

"including the success of combined teams within the US recently reaching agreement with one of the US's largest retailers for the supply of all year round themed and seasonal 'Impulse' gifting products, to over 1500 stores nationwide. This new agreement is expected to generate significant incremental revenues in FY21 and beyond. Further growth opportunities within the Food and Drug retail channel have also been secured, reflecting focus on great value 'Impulse' gifting products.

In the UK, the Company has secured a number of new character licenses across the Gift Packaging categories which represent excellent additions to the broad existing portfolio. The Directors are also greatly encouraged with the enthusiastic response to FY20 key licensed product launches, including Frozen 2 and Toy Story 4."

This is a better link...
https://www.igdesigngroup.uk/2019/05/28/paper-twist-carrier-bags-from-design-group-uk/

https://www.igdesigngroup.uk/video-portal/