The producers of celebration and creative products globally, posted revenue of $729.3 million, down from $800.1 million in the previous year
LONDON: IG Design Group plc reported a significant strategic shift in its business operations for the financial year ending March 31, 2025, with the completed divestment of its loss-making DG Americas division.
The company, which designs and manufactures celebration and creative products globally, posted revenue of $729.3 million, down from $800.1 million in the previous year.
Adjusted operating profit dropped to $5.2 million from $31.1 million, impacted by weak demand, competitive pricing, and increased freight costs.
Group-wide results included a recognized impairment charge of $54.2 million, linked to the bankruptcy of a major DG Americas customer. Net cash at year-end stood at $84.8 million, marginally lower than the prior year.
The divestiture, completed post-year-end, is expected to simplify the group structure and improve profitability. DG International, which remains the Group’s core division, showed resilience with growth in product lines such as Smartwrap™, as well as enhanced licensing and branding strategies.
“Despite the challenges, we’ve taken decisive action to protect the integrity of the wider Group,” said Stewart Gilliland, Interim Executive Chair. “This marks a turning point in our strategic journey.”
IG Design is now targeting revenue between $270 million and $280 million for FY2026, aiming for an adjusted operating margin of 3–4%. The Group also confirmed no dividend will be issued for FY2025, with future distributions under review.