Ig Design Group Plc · LSE:IGR
Ig Design — FY2020 Earnings Presentation
15 slides from Ig Design's earnings presentation, December 2020
Slide 1: 2020 Full Year Results, Covid-19 and Q1 2021 Trading Update
2020 Full Year Results, Covid-19 and Q1 2021 Trading Update Presented by Paul Fineman, CEO and Giles Willits, CFO
Slide 2: Highlights
HIGHLIGHTS 2020 Results Covid-19 CSS Integration Covid-19 adjusted Swift and decisive Accelerated integration performance in line action positions Group with synergies ahead of with market for future growth expectations expectations. Maintaining progressive dividend Q1 2021 Trading 2021 Outlook Stro
Slide 3: Our Business - Strength Through Diversity
OUR BUSINESS - STRENGTH THROUGH DIVERSITY Customer Destination Season Product Source • Customer – growing US revenues where greatest opportunities for organic growth exists • Product – becoming less Celebration centric with growth in Craft category following CSS acquisition • Season – more Everyday
Slide 4: Covid-19 Update
COVID-19 UPDATE Actions Current Status People & Operations • Ensure facilities compliant with • Safe working environment for required protocols teams established • Reorganisation of manufacturing • Facilities fully operational across and distribution to maintain Group by end Q1 operations • Develope
Slide 5: 2020 Highlights – Our Commitments
2020 HIGHLIGHTS – OUR COMMITMENTS Covid-19 Impact Maintaining Progressive Dividend Average Leverage 0.9x The Directors believe that Covid-19 Maintaining progressive dividend policy Significant reduction in leverage to 0.9x impacted adjusted profit by £3.8 with 3.1x dividend cover (2019: 3.4x) (2019:
Slide 6: 2020 Financial Highlights
2020 FINANCIAL HIGHLIGHTS Covid-19 Impact Revenue Covid-19 Impact Profit Year End Net Cash Improvement March 2020 revenue lower by March 2020 profit £3.8 million lower as Year end net cash £42.3 million estimated £6.9 million as a result of a result of unshipped customer orders supported by equity r
Slide 7: 2020 Profit & Loss
2020 PROFIT & LOSS 2020 2019 Reported Adjusting Adjusted Reported Adjusting Adjusted Items Items Segmental Analysis & Covid-19 Impact £m £m £m £m £m £m Revenue 2020 2019 Covid-19 impact on £m £m Revenue Americas $m 355.9 289.9 Americas $6.6m Revenue 494.2 - 494.2 448.4 - 448.4 UK £m 117.5 127.1 UK £
Slide 8: Cashflow and Banking Facilities
CASHFLOW Working capital Analysis 2020 2019 £m £m £m £m £m £m 2020 2019 CSS Existing Total Impact Existing Total £m £m Receivables 7.7 (11.0) (3.3) 26.8 (1.2) 25.6 Inventory (0.5) (4.9) (5.4) 10.8 (6.5) 4.3 Adjusted EBITDA 48.1 38.7 Creditors 0.3 0.9 1.2 (13.0) (5.1) (18.1) Movements in working capi
Slide 9: Strategy in Action – 2020
STRATEGY IN ACTION – 2020 Working with the Winners Design & Innovation Efficiency & Scale • Growth in top 10 customers to 52% of sales Major growth in Impulse and ’Treasure New state of the art printing press in (48% in 2019) Hunts’ in grocery channel Memphis, USA – operational from March • CSS
Slide 10: CSS Integration Update
CSS INTEGRATION UPDATE The CSS acquisition completed on 3 March 2020, just over 20 weeks ago. Significant progress has been made since this including: • One senior management team – the combined US business is now led by one overall strengthened management team, with unified sales, operations, finan
Slide 11: Q1 Update & 2021 Outlook
Q1 UPDATE & 2021 OUTLOOK Q1 Revenue Operations • Reported revenue up year on year benefitting • New printing press fully operational in Memphis, from CSS and ahead of management Covid-19 USA from March 2020 adjusted forecast • Fully integrated management team in US • Like for like (excluding CSS) do
Slide 12: Summary
SUMMARY • 2020 financial performance in line with market expectations taking into account impact of Covid-19 • Working with the winning customers and product categories – resilient and taking market share • CSS integration/synergies fully on track with more opportunity in 2022 and beyond • Q1 2021 a
Slide 13: Appendix
APPENDIX
Slide 14: Adjusting Items
ADJUSTING ITEMS 2020 2019 £m £m Losses/(gains) and transaction costs relating to acquisitions and disposals of businesses 3.3 2.4 Acquisition integration and restructuring costs 9.4 6.0 Impairment of assets 9.5 - COVID-19 costs 0.5 - US tariffs 3.5 - Acquisition amortisation 2.8 1.6 LTIP (credit)/ch
Slide 15: thedesigngroup.com
IG Design Group plc No 7 Water End Barns Water End Eversholt MK17 9EA T +44 (0)1525 887 310 thedesigngroup.com