19th Oct 2020 10:16
(Alliance News) -Â IG Design Group PLC on Monday said its interim performance was ahead of management expectations.
Shares in IG Design were up 12% at 464.60 pence in London on Monday.
The consumer gift packaging business said revenue is expected to grow 40% year-on-year in the six months to September 30 to USD435 million - including USD149 million from CSS Industries Inc - with better-than-expected performances across both the Americas and International divisions.
The CSS acquisition, worth GBP89.7 million, was announced at the start of this year.
Group revenue excluding CSS was 8.3% down year-on-year in the period reflecting the impact of Covid-19, with this seen particularly in the first quarter but the second quarter showing a "strong recovery".
"CSS revenues in the first half were marginally down year on year as a result of the impact of Covid-19 in the first quarter, however, second quarter sales ended up on the same period in the prior year," IG Design explained.
A focus on cost management - including initial synergies from the CSS acquisition - alongside the inclusion of CSS's results for the first time in the interim period, is expected to deliver a year-on-year increase in group adjusted pretax profit.
The integration of CSS continues to deliver synergy savings ahead of schedule, IG Design noted.
Looking ahead, IG Design said: "The board note that performance in the first half of the financial year is ahead of management expectations but it remains cautious in relation to the full year outlook, particularly in the context of Covid-19."
By Lucy Heming;Â [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Design Group