Last checked at 26 Aug 2015 07:00
26 August 2015
International Greetings PLC
Trading Update
International Greetings PLC ("International Greetings" or the "Group"), one of the world's leading designers, innovators and manufacturers of gift packaging and greetings, social expression giftware, stationery and creative play products, is pleased to provide an update on the first quarter's trading period, ending 30 June 2015.
Across the Group, sales during the first quarter, together with overall customer order levels already received for the balance of the year, have been in line with management expectations.
The Board believes the Group is on track to deliver against market expectations and is in good shape to combat the anticipated impact of a weak Euro and Australian Dollar exchange rate as we enter our peak operational and trading periods.
U.S. Highlights:
Commercial and operational activities, under the direction of our recently appointed CEO Gideon Schlessinger, are encouraging and in line with our projections for the full year. We are delighted to report several new initiatives in the U.S.:
· Following highly successful fast payback investments in Holland and UK, the Group has begun a phased programme of investment in the U.S. manufacturing facility starting with new high speed gift wrap converting equipment to be installed in early 2016
· Long established trading relationship with Aldi expanded into the U.S., where Aldi has over 1,000 established stores
· Received a 2015 Christmas commitment from one of the largest drugstore chains to feature in over 7,500 stores
· Commenced trading with a chain of over 8,000 discount stores where a range of creative play products will be launched in Autumn 2015
Licensing Highlights:
· Entered into a licensing contract with Disney for the Star Wars franchise which applies to several product categories on a multi-territory basis
· Entered into a licensing contract with Coca Cola Enterprises, featuring the iconic Coca Cola Santa Claus across a range of gift packaging and greetings products in the UK
· The Universal Studios licensed range of 'Minions' characters from the 'Despicable Me' film series has received commitments for in excess of 2 million units of creative play products in the UK
· The latest National Geographic licensed product offering across gift packaging, gifting and stationery categories will be promoted in over 3,000 additional stores during 2015 in the U.S.
Paul Fineman, Group CEO, commented:
"Having re-balanced the Group over recent years, we are well placed to continue to grow overall profitability.
We are delighted with the opportunities created from our ever strengthening cross regional customer relationships and also from the exciting new licensing arrangements that we have concluded featuring some of the world's most loved and iconic characters and brands."
For further information, please contact:
International Greetings PLC Tel: 01525 887310
Paul Fineman, Chief Executive
Anthony Lawrinson, Chief Financial Officer
Cenkos Securities plc Tel: 0207 397 8900
Bobbie Hilliam
FTI Consulting Tel: 020 3727 1000
Jonathon Brill
Tom Hufton