IG Design Group (IGR) investor relations material

Financial performance and trading update

• FY2026 revenue expected at approximately $292 million, surpassing market consensus and Board expectations.

• Adjusted operating profit projected at $12.8 million, with a 4.4% margin and profit before tax of $11.5 million.

• Year-end net cash stands at about $72 million, significantly above expectations, aided by strong working capital management and asset sales.

• Excluding DG Americas outflows, over $20 million of cash was generated during the year.

• Board remains cautious due to macroeconomic uncertainty but is encouraged by outperformance and recent CEO appointment.

Acquisition and strategic developments

• Acquired Glenart S.A. for around £5.3 million, including initial and deferred payments plus potential earn-out.

• Glenart S.A. reported unaudited revenues of £4 million, PBIT of £0.8 million, and EBITDA of £1 million for the year ended February 2026.

• Acquisition is earnings enhancing and expands presence in the "Celebrate" category, especially crackers.

• Glenart S.A. operates mainly in South Africa, the UK, and the USA, aligning with existing mass-market channels.

• Acquisition financed from working capital and considered strategically aligned for geographic and product expansion.

Guidance and future outlook

• Previous guidance was revenue $280-285 million, margin 4%, and cash $55-60 million; actuals are ahead.

• Consensus was revenue $282 million, margin 4%, and cash $56 million.

• Group will switch presentational currency from USD to GBP starting FY2026 full-year results.

• Update on capital allocation policy to be provided with full-year results.

• Strong balance sheet supports continued progress on long-term strategic growth pillars.