(Alliance News) - IG Design Group PLC on Wednesday reported an increased profit as it managed to sustain customer relationships despite the challenging economic environment.
IG Design is a Buckinghamshire-based gift packaging and stationery company.
In the six months that ended September 30, IG Design's pretax profit increased by 69% to USD31.9 million from USD18.9 million the year before, as operating profit rose by 64% to USD35.1 million from USD21.4 million.
Revenue increased 7.7% to USD521.3 million from USD483.9 million in the same period last year. Both of IG's divisions - DG America and DG International - performed ahead of last year, reflecting an "acceleration of orders" as customers try to de-risk supply chains.
It paid no dividend in the first half in line with guidance, compared to 1.7 cents last year.
The company said it has a strong order book for 2023, which at the end of October was at 93% of budgeted revenue. IG Design said this showed that "customer relationships have been sustained".
Although IG Design admitted that the cost environment remains "challenging", it said that cost inflation is being mitigated. It now expects an operating margin improvement in the 2023 financial year.
It noted that it saw an "acceleration of customer orders related to Christmas trade" in the first half of the year, meaning its full year results will be skewed towards the first half.
Beyond 2023, IG Design remains cautious due to "deteriorating consumer sentiment".
Interim Chair Stewart Gilliland said: "While the challenging external backdrop and the uncertain impact of sustained cost inflation on consumer sentiment in some markets does temper our optimism notwithstanding the strong start to this year, the group has once again proved that it has extremely strong relationships with its customers and there is ongoing demand for our products."
Shares in IG Design were trading 4.0% higher at 118.51 pence each in London on Wednesday morning.
By Chris Dorrell; chrisdorrell@alliancenews.com
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Design Group (IGR)