IG Design FY Loss Widens

IG Design Group plc. (IGR.L) reported that its loss attributable to owners of the parent company for the year ended 31 March 2023 widened to $27.99 million or 28.6 cents per share from $3.28 million or 3.3 cents per share in the prior year.

Adjusted profit before tax was $9.2 million compared to a loss before tax $1.3 million in the prior year. Loss before tax was $18.90 million compared to a profit of $2.20 million in the previous year. This was significantly adverse to the improvement in adjusted profit before tax reflecting the (largely non-cash) adjusting items in the current year of $28.1 million compared to a net credit of $3.5 million in the prior year.

Revenue for the year ended 31 March 2023 decreased by 8% to $890.3 million from the prior year, hurt by combination of adverse foreign exchange movements in DG International, the strategic decision to exit loss-making business in DG Americas, and lower volume in the second half of the year in a number of markets. Constant currency Group revenues reduced by 4% year-on-year.

In light of the Group’s current position on the path to profit recovery and the challenges around reduced consumer demand, the Board is not proposing a dividend in respect of the year ended 31 March 2023.

During fiscal year 2024, the company anticipates continued progress with its aspiration to return to pre-pandemic operating profit margins by the end of fiscal year 2025.

The Board still aspires to return to paying dividends, but based on the immediate outlook, and the need to strengthen the business model, the Board does not expect to be in a position to do so during fiscal year 2024.

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