LONDON (Alliance News) - IG Design Group PLC on Monday said it expects annual performance to be significantly ahead of the prior year, as trading in the fourth quarter continued to deliver growth.
For IG Design's year ended March 31, the gift packaging and stationery designer expects revenue to rise 37%, driven by the acquisition of Impact Innovations Inc in the US. Excluding the acquisition, revenue is guided 9.8% higher.
A year prior, the company posted revenue of GBP327.5 million.
The acquisition is expected to also drive operating profits significantly higher, IG Design added.
Exceptional costs are guided to remain in line with expectations, at approximately GBP8 million to GBP9 million, primarily reflecting the Impact's acquisition and the subsequent US restructuring, the company explained.
"Our strong performance in financial 2019 reflects our close relationships with the world's leading retailers, our focus on innovation and efficiency and the increasing benefit of scale as we continue to grow," Chief Executive Paul Fineman said.
He added: "It is particularly pleasing to have achieved significant organic growth whilst also benefiting from the acquisition of Impact Innovations and other investments made throughout this and prior years. This achievement is testament to the global nature of our business and the extent to which we have diversified and de-risked the group.
"We look forward to continuing to drive the business forward, with a focus on continued organic growth, supplemented by compelling M&A."
IG Design shares were trading down 2.2% at 587.00 pence each Monday.
Design Group (IGR)