Greetings Today magazine, giving you the bigger picture

Record volumes sold

IG announce 21% profit growth in ‘excellent set of results’

SHIFTING record volumes of gift packaging and greetings products saw revenue at International Greetings increased by £4.6million over the past financial year according to their preliminary results announced yesterday.

The company, which designs and manufactures gift packaging, greetings, social expression giftware, stationery and creative play products, said their profit grew by 21 per cent to £9.2m before tax, exceptional items and long-term incentive plan charges.
CEO Paul Fineman, pictured, said: “I am very pleased to report an excellent set of results during a year in which we have exceeded our goals in profit generation, debt reduction and earnings per share growth.
“We have continued to strengthen the balance sheet and simultaneously identified and invested in fast payback opportunities within our business. We are delighted that we can therefore confidently return to the dividend list a year ahead of schedule.
“The investments we have made during the period mean we are very much on plan to deliver double-digit cumulative average growth in earnings per share and we remain determined to continue to drive performance and reduce leverage. We believe we can achieve these objectives while simultaneously providing a dividend return for shareholders and investing carefully for further future growth.”
International Greetings have their head office in Eversholt, Beds, with a production facility in Hengoed, Wales, as well as their own factory in China and facilities in Holland and the US.
The report stated that operational highlights of the financial year to March 31, 2015, include:
● The completion of major capital investment in production facilities in Wales on time and on budget.
● Record volumes of gift packaging and greetings related products sold worldwide.
● Installation of new gift bag manufacturing facilities in China to be fully deployed throughout 2015/16.
● Underlying operating profits in Europe up by 32 per cent following the successful acquisition and integration of Enper BV Giftwrap in Holland, announced on June 5, 2014, building upon our capital investment there in 2012.
● Major licensing wins throughout the Group including new franchises with Disney and Universal Studios.
A full-strength management team, together with a considerably strengthened balance sheet underpins opportunities for on-going growth both organically and through well considered acquisitions.
The financial highlights include:
● Revenue at £229m up by £4.6m (two per cent) or £9.9m (4.5 per cent) at like for like exchange rates.
● Profit before tax, exceptional items and LTIP charges up 21 per cent to £9.2 million (2014: £7.6m).
Fully diluted earnings per share before exceptional items increased 29 per cent to 10.7 pence (2014: 8.3 pence).
● Cash generated from operations before exceptional items up 18 per cent to £17.9m (2014: £15.2m).
● Net debt down 20 per cent to £29.4m (2014: £36.9m) and leverage down 0.6 times to 1.8 times, comfortably below the key target of 2 times and a year ahead of schedule.
● Return to the dividend list with proposed full year dividend of one pence.

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