Positive revenue and profit momentum
Design Group’s trading update confirms continued progress across its three strategic drivers with both revenue and profit showing strong year on year growth. This positive momentum reflects a combination of underlying organic growth and the full year effect of the Impact acquisition in the US last August, along with its successful integration with existing operations. Order book and production volumes are both ahead of last year and in line with company expectations. Our forecasts remain unchanged at this stage, albeit with potential upside to FY21E from a successful cross selling initiative with a US retailer.