Paul Scott of STOCKOPEDIA comments11 Jun 2019 16:01
IG Design (LON:IGR)
Share price: 600p (down 0.7% today, at 11:58)
No. shares: 78.3m
Market cap: £469.8m
Full year results
IG Design Group plc, one of the world's leading designers, innovators and manufacturers of Gift Packaging, Celebrations, Stationery and Creative Play products, Giftware and related product categories announces its results for the year ended 31 March 2019.
Sparkling results today from this group. I'm surprised the share price hasn't really moved.
Adjusted EPS is up 33% to 29.3p - giving a PER of 20.5 - not cheap, but surely justified given the strong profit growth.
I can't find any new broker forecasts unfortunately. Looking on Research Tree, there's a note from Progressive Equity Research from 15 Apr 2019 estimating 27.0 adj. EPS. Stockopedia shows 26.9p EPS forecast, almost the same. So the actual of 29.3p looks a comfortable beat against expectations.
Dividends - final divi up 50% to 6p. With the 2.5p interim divi, that gives a yield of 1.4% - not very exciting, but rising quite rapidly.
Outlook - key bits say;
...we are greatly encouraged with prospects for this trend to continue in 2020 and beyond...
We are excited by the positive start to the new financial year and the potential to drive the business forward through compelling M&A opportunities.
Exceptional items - large this year, at £8.4m - mainly restructuring charges
Balance sheet - looks better, since an equity fundraising was done during the year.
Cashflow statement - looks fine. A genuinely cash generative business, which is making acquisitions.
My opinion
Looks a very nice business, that has performed extremely well in recent years.
The valuation reflects this, and looks about right to me.
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