Slide 1: Preliminary results for the year ended 31 March 2017
Preliminary results for the year ended 31 March 2017 Presented by Paul Fineman, CEO and Anthony Lawrinson, CFO June 2017
Slide 2: A record year of financial progress ahead of market expectations
IG Design Group plc Preliminary results for the year ended 31 March 2017 1 A record year of financial progress ahead of market expectations Success delivered through: Organic diversification by geography, category, season, brand and channel Investment driving efficiency, streamlining processes and a
Slide 3: Introduction
IG Design Group plc Preliminary results for the year ended 31 March 2017 2 Introduction designs, innovates, manufactures and sources the following core product categories Celebrations Stationery & Creative Play Gifting 75% 15% 10% of revenue of revenue of revenue £232m £47m £32m
Slide 4: Financial highlights
IG Design Group plc Preliminary results for the year ended 31 March 2017 3 Financial highlights Profit before tax, Underlying diluted Cash generated Net exceptional items and LTIP earnings per share from operations cash/(debt) 3.0 (£million)(a) (pence)(b) (£million) (£million) 2017 16.3 18.2 31.5 (3
Slide 5: Our diverse business
IG Design Group plc Preliminary results for the year ended 31 March 2017 4 Our diverse business Australia Manufactured Sourced £33.6m 39% 61% 11% Product Europe USA £55.1m Everyday £133.5m GROUP 18% Christmas 57% 43% REVENUE BY 42% CUSTOMER Season DESTINATION Rest of World £5.6m 2% Design Group bran
Slide 6: Some key facts
IG Design Group plc Preliminary results for the year ended 31 March 2017 5 Some key facts No. 3 in the 100 million cards, global gift packaging 70 million gift Present in over and greetings market bags and nearly 200,000 retail worth an estimated 1 billion metres outlets in more than £15 billion(a)
Slide 7: What underpins our performance?
IG Design Group plc Preliminary results for the year ended 31 March 2017 6 What underpins our performance? • Strong offering • Design and innovation • Award winning service • Geographic diversity • A broad portfolio • Audited compliance • Customer relationships • Low cost
Slide 8: Results
IG Design Group plc Preliminary results for the year ended 31 March 2017 7 Results
Slide 9: FY17 – highlights include:
IG Design Group plc Preliminary results for the year ended 31 March 2017 8 FY17 – highlights include: • Record Group sales of £311 million • Generated over £31.5 million in operating cash flow • Underlying gross margin up 2.3 percentage points • Resulting in average leverage being (from 18.3% to 20.
Slide 10: Summary of full year results
IG Design Group plc Preliminary results for the year ended 31 March 2017 9 Summary of full year results Year ended Year ended 31 March 31 March 2017 2016 Growth £m £m % Sales 311.0 237.0 31 Gross profit 63.9 43.4 47 20.6% 18.3% Overheads (46.6) (30.7) 52 15% 12.9% Other income 0.2 0.8 Operating prof
Slide 11: Earnings per share, dividend and tax
IG Design Group plc Preliminary results for the year ended 31 March 2017 10 Earnings per share, dividend and tax Diluted EPS (Pre‑exceptionals and LTIP) Dividend progression Tax rates 20 % 38% Growth Earnings 150% 80% 18 35 ‘Expected’ 18.2 Cover N/A 11.5x 5.3x 4.0x 35.1 rate 16 28% 30 15% 4.5p 30.0
Slide 12: Strong cash flow conversion
IG Design Group plc Preliminary results for the year ended 31 March 2017 11 Strong cash flow conversion 2017 2016 £m £m EBITDA before LTIP costs 22.5 17.2 (Increase)/decrease in debtors (0.8) 1.0 Decrease in stock 2.7 1.2 Increase in creditors, provisions and accruals 7.8 1.5 Exceptional items (0.7)
Slide 13: Balance sheet
IG Design Group plc Preliminary results for the year ended 31 March 2017 12 Balance sheet As at As at 31 March 31 March Freehold property 2017 2016 Fixed assets of £32.6 million include freehold land and buildings with a net book value of £m £m £9.9 million. This includes the following site that may
Slide 14: New global funding arrangements
IG Design Group plc Preliminary results for the year ended 31 March 2017 13 New global funding arrangements Lender Due Facility Margin Covenant HSBC Corporate revolving credit facility and overdraft 2020 £18m 0.95% Leverage covenant Working capital revolving credit facility Annual £40m 1.00% Stock a
Slide 15: Our objectives
IG Design Group plc Preliminary results for the year ended 31 March 2017 14 Our future promises Growth: Underlying Risk: Average leverage Returns: Dividend policy EPS growth Our objectives Sustain long term between Continue double digit three‑year Trend upwards until 2.5x 2.0 and 2.75x CAGR in under
Slide 16: Why invest?
IG Design Group plc Preliminary results for the year ended 31 March 2017 15 Why invest? We will continue to drive organic sales growth, through our diversified business operating across regions, categories, channels, seasons and brands We will enhance net margins through investment – driving efficie
Slide 17: thedesigngroup.com
IG Design Group plc No 7 Water End Barns Water End Eversholt MK17 9EA T +44 (0)1525 887 310 thedesigngroup.com