Design Group Regulatory News (IGR)

23 Aug 2007 07:00

International Greetings PLC23 August 2007 Trading statement and Announcement of US acquisition International Greetings plc ("International Greetings"), the designer,manufacturer and distributor of greetings, stationery and licensed publishedproducts, today announces an update on current trading, future prospects and onits continuing overseas expansion and acquisition strategy. Since 2003, International Greetings has pursued a twin strategy of developingnew distribution channels in the UK away from the private label sector andexpanding internationally in order to reduce its historic dependency on thechallenging UK retail market. This strategy has proved to be successful andInternational Greetings has become a key player in the global markets in whichit operates. The recent acquisitions of Anker and Alligator/Pinwheel in the UK, which,together with our US and European businesses, are performing in line withexpectations, have reduced the proportion of the Group's turnover to the UKprivate label sector to approximately a third of total revenues. However, as has been well documented in recent months, the UK retail climateremains extremely tough with many large retail groups continuing to put pressureon suppliers' margins. As a consequence, our projected turnover and profits forthe year to 31 March 2008 are anticipated to be below current market estimates,with *profit before tax now expected to be in the region of £17m. This is basedon the existing business and does not take into account any benefits of furtheracquisitions made during the remainder of this financial year. With regard to our acquisition strategy, we have recently concluded the purchaseof a 50% shareholding in Halloween Express LLC, a profitable US based seasonaland internet retail business, where we intend to add value by extending itsproduct offering beyond Halloween to include our ranges of Christmasmerchandise. We are also close to finalising two further international acquisitions whichwill provide entry into new product and geographical areas. Heads of terms havebeen agreed and we will disclose further information on these exciting additionsto the Group as soon as the deals are completed. Nick Fisher, Joint Chief Executive commented: "Whilst the shorter term outlookhas been clouded by the difficult UK market, we remain confident that thebusiness strategy we have adopted will provide long term growth and stability,and create value for our shareholders." For further information: Nick Fisher/Mark Collini: 01707 630630Graeme Cull, Arden Partners plc: 0121 423 8960Jeremy Carey, Tavistock Communications: 020 7920 3150 * Profit before tax and exceptional items, stated under IFRS, which will beadopted for the first time in the current year. This information is provided by RNS The company news service from the London Stock Exchange