Business
Major Investment and Pre Close Trading Statement
Major Investment and Pre Close Trading Statement.
About this update from Ig Design Group Plc
[{"type":"text","content":"\n \nRNS Number : 5138C International Greetings PLC 17 April 2013 \n \n\n17th April 2013\n \nInternational Greetings PLC (\"the Company\" or \"the Group\")\n \nMajor Investment and Pre Close Trading Statement\n \n \nInternational Greetings PLC, one of the world's leading designers, innovators and manufacturers of gift packaging & greetings, stationery and creative play products, is pleased to today announce a major new investment initiative, new banking facilities and a trading update.\n \nHighlights\n \n· A major capital investment proceeding in the Company's UK gift-wrap manufacturing facilities in South Wales and at its manufacturing facilities in Savannah, Georgia, USA.\n· Bank support secured for the investment; improved and extended facilities agreed\n· Key target of double digit growth to adjusted EPS (fully diluted pre-exceptional earnings per share) for FY13 substantively in line with expectations\n· Current year order book is developing well including contracts for the supply of Christmas gift packaging with all four of the UK's leading Supermarket multiple retailers\n \nMajor New Investment funded by New Bank Facilities \n \nThe Board is pleased to announce that it has secured funding for and commenced the implementation of a majorcapital investment (c £6m net of grants) in the Company's gift-wrap manufacturing facilities in the UK. This involves the rationalisation of gift-wrap printing to one site instead of two, the retirement of old presses and investment in new state of the art printing equipment. This investment will enhance the quality and environmental footprint of the Company's products whilst sustaining its competitive position in a core product category. Execution of the investment will take 12 months, after which point pay-back is expected to be approximately three years, excluding the potential to subsequently dispose of a surplus freehold site valued in excess of £1m.\n \nThe Company is also undertaking a smaller scale, but faster pay back investment of £0.5m at its manufacturing facilities in Savannah, Georgia, USA.\n \nThe combined effect of the initiatives to update the manufacturing capability within the Group, ...