IG Design Group, the UK’s largest gift wrap and Christmas cracker designer, said it expects revenue to have dropped 10 per cent in 2024 due to an under-performing Americas division and “softness” in UK and Australian markets.
The London-listed company said it expects to deliver full year revenue of around $800m (£639m) for 2024, a 10 per cent drop on 2023, as sales in its Americas business fell 24 per cent in the first of the year.
Consistent momentum in Europe helped offset weaker UK and Australian sales of its products, which also include gift bags, stationery and greetings cards.
IG Design expects adjusted profit before tax to rise to $25.9m (£20.7m), nearly triple the $9.2m (£7.3m) it posted the previous year, and north of market expectations.
The group also warned its results will be adjusted to make a provision of around $5.5m (£4.4m) for “potential liabilities relating to pre-acquisition era duties owed in the DG Americas division”. It is taking legal advice on the matter.
Chief executive Paul Bal said: “I am delighted with our progress in improving operational efficiency and simplifying our business. Through our work, we have delivered another year with significant improvement in profit and margin. I thank all of my colleagues for their hard work as we continue on our journey.
“Looking ahead, whilst the external environment remains uncertain, we remain confident that our strategy is the right one, and that we will achieve our aspiration to return the Group to pre-Covid-19 adjusted operating profit margins by 31 March 2025,” he added.