IG Design Group PLC (LON:IGR) have told the market that they have not been materially impact by the outbreak of the coronavirus.
The firm did note that they do have operations in China, but production volumes are set to rise over the next few weeks.
The firm said: “The Group is closely monitoring the developments regarding COVID-19 and its potential impact on the business. With the current known scale of the outbreak, it is not expected that there will be a material impact to the Group’s current forecasts.”
The stance that IG Design took today will reassure shareholders, in what has been a hectic week for global business and stocks.
IG Design also noted that the firm is set to meet expectations as it had a strong festive seasonal trading period and completed its CSS Industries Inc acquisition.
The CSS deal was worth £89.7 million, and was announced a few weeks back in January. Notably, this deal will also allow IG Design to double the size of its US operations.
Commenting on the performance, Paul Fineman, Group CEO, said:
”In what has been a particularly challenging year, we are pleased with the progress the business has made, and that we remain on target to deliver performance in line with expectations. This is truly a testament to the hard work of all of our teams and the inherent agility that runs throughout our business.
We are also delighted that we have completed the CSS acquisition on schedule and can now commence the process of integrating the two businesses. We have already been working hard on integration planning and look forward to delivering on the significant opportunity ahead for the enlarged group.”
IG Design see November success
Just before Christmas, IG Design posted a bumper set off fundamentals – which sent shares rallying.
The Group’s revenue bounced 21% between the first and second half, up to £248.4 million. This led the Company’s adjusted operating profit to increase likewise by 21% to £23.6 million.
Similarly, they narrowed their net debt from £100.0 billion to £86.2 million between the two halves, which allowed their average leverage to fall to 1.0 times, from 1.3 times for the 12 months to 30 September 2018.
IG Design shareholders also fared well, with their adjusted fully diluted EPS up 2% to 20.1p, and their interim dividend surging 20% to 3.0p.
Shareholders of IG Design Group should be pleased from the update today.
The firm has taken a different stance to other companies that operate in China. The current situation of the coronavirus does not seem to be under control, as the UK Government yesterday announced intentions to release plans to limit the spread of COVID-19.
The pathogen will have to be limited soon, as many firms are facing troubles in trading. However IG Design have remained optimistic and should deliver a steady set of results in 2019.
Shares in IG Design Group trade at 749p (+0.43%). 4/3/20 11:37BST.
