IG Design upgrades outlook as cash position strengthens and distribution plans take shape

IG Design Group plc (LSE:IGR) has refocused its business following the disposal of DG Americas, with operations now centred on its continuing European and international activities. Reflecting the streamlined structure, the group will switch its reporting currency to sterling, aligning financial presentation with its primary operating base.

For the year ending 31 March 2026, IG Design expects revenue in the region of $280 million to $285 million and an adjusted operating margin of roughly 4%. Both metrics sit at the upper end of prior guidance and ahead of market forecasts. Robust cash generation — supported by disciplined working capital management and the planned sale of a UK warehouse — is projected to lift net cash to between $55 million and $60 million, significantly exceeding earlier expectations.

Looking further ahead, the group is maintaining guidance for modest annual revenue growth of 0–5%, adjusted operating margins of 4–5%, and sustainable cash generation of $6 million to $8 million per year. Management continues to focus on long-term growth initiatives designed to enhance returns beyond core trading performance, reinforcing its post-disposal strategic repositioning.

Shareholders have approved a capital reduction to establish distributable reserves, paving the way for potential shareholder returns once a formal capital allocation policy is outlined in June. Meanwhile, the search for a permanent chief executive remains ongoing, with Interim Executive Chair Stewart Gilliland providing leadership continuity during the transition.

Despite the improved cash outlook, the company’s investment profile remains weighed down by recent loss-making margins and pressured free cash flow. Technical indicators are currently negative, with the share price trading below key moving averages, while valuation metrics reflect the absence of earnings and dividend support.

More about IG Design

IG Design Group designs and manufactures products across celebration and creative categories, supplying retailers and consumer markets with items such as gift wrap and related goods. Following the sale of its DG Americas division in 2025, the group now concentrates on its remaining operations, primarily in the UK and other international markets, and will report its results in GBP going forward.