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magazineIG Design is down but not out
IG Design (IGR:AIM) 420.2p
Loss to date: -39.7%
Original entry point: Buy at 697p, 19 December 2019
Coronavirus has not been kind to our bullish stance on greetings card firm IG Design (IGR:AIM).
While initial concerns centred on its supply chain – with some of the group’s manufacturing base in China – the pandemic’s spread led to increasing concern about demand for the group’s products which span everything from gift packaging, greetings cards, stationery and design-led giftware.
A trading update on 21 September at least confirmed the company would hit expectations for the 12 months to 31 March 2021.
Revenue is expected to be up year-on-year – albeit thanks to its £89.7 million acquisition of CSS, a deal which doubled the size of its footprint in the US.
The company also said it had started to deliver on its $500 million pipeline of orders and is building on this pipeline with new orders. Investors can expect more details in a planned update for mid-October.
SHARES SAYS: We hope the October trading statement can help improve sentiment towards the stock. Stick with the shares for now.
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