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IG Design FY revenue growth driven by CSS acquisition

Tue 20 April 2021 09:20 | A A A

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(Sharecast News) - Gifts and stationery products manufacturer IG Design said on Tuesday that full-year reported revenues had surged in the financial year ended 31 March, driven by a full year of trading from CSS Industries following the completion of the acquisition in March 2020.

IG Design finished the year with reported revenues of $870.0m, up 40% year-on-year, reflecting strong growth in the Americas as a result of the CSS acquisition and a much better than expected performance from the firm's international unit, particularly in Australia and Europe.

Despite the impact of Covid-19, like-for-like revenues were down about 5%, with full-year LFL earnings anticipated to be in line with current market expectations.

The AIM-listed group said its customers continued to trade well, with the high sell-through rates seen over the 2020 festive period providing a good basis to build a stronger order book for the new financial year.

Looking forward, IG said while it remains cautious about the ongoing impact of Covid-19 and its associated impact on raw material and freight pricing, the group also stated it was "extremely encouraged" by the resilience of its "diverse customer base" and broad product portfolio.

"Assuming the current progress in opening up the regional economies in which our businesses operate continues, the board expects significant year on year growth in both revenues and earnings in FY2022, in line with current market expectations," said IG.

As of 0920 BST, IG Design shares were up 1.30% at 624.0p.

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