IG Design plc
Visit IG Design plc
Description
IG Design is a global operator with four main product categories: Celebrations (gift wrap, crackers, bags and cards), Stationery and Creative Play, including the Kid’s Create brand, Gifting and Not-for-resale consumables. Of its revenue, 39%, is manufactured and 61% is sourced. IG Design sells to over 200,000 retailers in over 80 countries. Its biggest market is the USA followed by the UK and Asia then Europe and, lastly, Australia. The Group produces own design and licensed product.
Company Presentations
Our view
IG Design is an industry leading operator in gift wrap, cards, crackers, bags, stationery and creative play and gifting. It is differentiated by its concept of end-to-end design which takes a whole-process engineering approach from building customer relationships, through sourcing and manufacturing to delivery. In a low margin/high volume core business it achieves dominance through paying meticulous attention to customer requirements, making considered investment in manufacturing capacity and achieving incremental cost reduction gains which in aggregate protect margins in the face of cost pressures. It is focused and entrepreneurial in its search for new revenue streams in adjacent product categories.
Financial Summary
Year end: March (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Revenue | 237.0 | 311.0 | 327.5 | 447.0 | 499.0 |
| Adj EBITDA | 17.4 | 22.4 | 28.0 | 40.0 | 48.6 |
| Fully Adj PBT | 10.8 | 16.3 | 21.4 | 29.5 | 36.7 |
| Fully Adj EPS (p) | 13.1 | 18.2 | 21.8 | 27.0 | 31.5 |
Profit & Loss
Year end: March (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Revenue | 237.0 | 311.0 | 327.5 | 447.0 | 499.0 |
| Adj EBITDA | 17.4 | 22.4 | 28.0 | 40.0 | 48.6 |
| Adj EBIT | 13.5 | 17.5 | 22.8 | 31.2 | 38.3 |
| Reported PBT | 9.9 | 13.0 | 19.7 | 20.3 | 32.7 |
| Fully Adj PBT | 10.8 | 16.3 | 21.4 | 29.5 | 36.7 |
| NOPAT | 8.3 | 12.4 | 15.4 | 22.4 | 27.9 |
| Reported EPS (p) | 11.9 | 15.0 | 20.5 | 14.5 | 25.6 |
| Fully Adj EPS (p) | 13.1 | 18.2 | 21.8 | 27.0 | 31.5 |
| Dividend per share (p) | 2.5 | 4.5 | 6.0 | 7.80 | 10.3 |
Cash Flow & Balance Sheet
Year end: March (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Operating cash flow | 20.7 | 31.5 | 21.7 | 46.6 | 40.8 |
| Free Cash flow | 11.9 | 20.5 | 1.4 | 5.5 | 21.6 |
| FCF per share (p) | 15.2 | 26.1 | 1.8 | 7.1 | 27.6 |
| Acquisitions | 0.0 | (2.7) | (5.1) | (82.7) | 0.0 |
| Disposals | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Shares issued | 0.1 | 5.1 | 0.1 | 62.5 | 0.0 |
| Net cash flow | 11.9 | 20.5 | 1.4 | 5.5 | 21.6 |
| Overdrafts / borrowings | (25.9) | (0.7) | (4.7) | (4.7) | (4.7) |
| Cash & equivalents | 8.4 | 3.7 | 9.0 | 14.6 | 28.8 |
| Net (Debt)/Cash | (17.5) | 3.0 | 4.4 | 9.9 | 24.1 |
Nav & Returns
Year end: March (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Net asset value | 71.4 | 90.1 | 100.5 | 141.5 | 153.3 |
| NAV/share (p) | 91.2 | 115.0 | 128.4 | 180.7 | 195.9 |
| Net Tangible Asset Value | 30.2 | 32.6 | 35.5 | 49.4 | 48.6 |
| NTAV/share (p) | 38.6 | 41.7 | 45.4 | 63.1 | 62.2 |
| Average equity | 139.8 | 148.6 | 162.6 | 209.6 | 258.9 |
| Post-tax ROE (%) | 6.0% | 8.3% | 9.4% | 10.7% | 10.8% |
Metrics
Year end: March (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Revenue growth | N/A | 31.2% | 5.3% | 36.5% | 11.6% |
| Adj EBITDA growth | N/A | 28.6% | 25.0% | 42.8% | 21.5% |
| Adj EBIT growth | N/A | 29.4% | 30.2% | 36.7% | 23.0% |
| Adj PBT growth | N/A | 51.2% | 31.7% | 37.8% | 24.3% |
| Adj EPS growth | N/A | 39.3% | 19.3% | 24.1% | 16.5% |
| Dividend growth | N/A | 80.0% | 33.3% | 30.0% | 32.1% |
| Adj EBIT margins | 5.7% | 5.6% | 7.0% | 7.0% | 7.7% |