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Manufacturer and supplier of gift packaging IG Design raised its full-year dividend and said it was increasingly optimistic about the outlook following a strong start to the year.
Like-for-like revenues in the first quarter of the fiscal year were ahead of management's Covid-19 adjusted expectations but were down 27.7% year-on-year reflecting the impact of Covid-19 on the business.
CSS, which was acquired in March 2020, saw revenue down 11.7% year-on- year but ahead of its updated forecasts benefiting from 'strong demand for craft product during lockdown,' the company said.
Revenue would remain ahead of 2020 as a result of the full year effect of the CSS acquisition, however, there would be a reduction in group revenue from the company's pre-Covid-19 expectations for 2021, IG Design said.
The strong start to the year arrived after the company reported that annual profit slumped as the pandemic hurt performance.
For the year ended 31 March 2020, pre-tax profit fell to £0.3m from £17.3m on-year as revenue rose to £494.2m from £448.4m.
The company recommended a final dividend of 5.75p, taking the full year dividend to 8.75 pence, up from 8.50p last year.
'Following our Q1 performance the directors are increasingly optimistic about the outlook for the full year and also 2022,' the company said.
At 9:56am: (LON:IGR) Ig Design Group PLC share price was +5p at 508p