LONDON (Alliance News) - International Greetings PLC Tuesday said it expects its results in the financial year that just ended to come in ahead of expectations, and confirmed it plans to start paying a dividend again on the back of its strong trading performance.
The company, which designs, manufactures and distributes gift packaging, greeting cards, stationary and toys, said it made further progress in the fourth quarter of its financial year to the end of March, meaning its full-year performance will beat market expectations.
The group said its overall earnings will be boosted by a combination of a robust operating performance, lower costs and beneficial tax rates.
Cenkos Securities is expecting the company to report a pretax profit of GBP8.3 million for the year to end-March, while Edison is expecting a profit of GBP8.4 million, according to data on Morningstar. That would be an increase on the GBP7.6 million pretax profit excluding exceptional items and long-term incentive plan charges that International Greetings reported in its last financial year.
International Greetings said its UK and European businesses have both performed well, boosted by costs savings which were achieved ahead of schedule, while revenue growth in the US remains strong, though the company said scope remains for margin and efficiency improvements in the business.
The group added it has made progress on reducing its debt obligations, with substantial reductions made in working capital requirements. As a result, it is set to meet its target of a year-end net debt to Ebitda ratio below two times.
As a result of the performance, the company said it intends to start paying a dividend for the year to the end of March. It last paid an interim dividend in its 2008 financial year, though did not pay a final dividend that year. Its last final dividend was paid in 2007.
"It is particularly pleasing to demonstrate an excellent outcome underpinned by fast pay back on investments recently made whilst having identified further opportunities to drive future progress in all regions," said Paul Fineman, chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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