Update: Crack(er)ing performance all round

The year-end trading update indicates that International greetings (IGR) ended FY16 strongly in all its geographic regions, with good momentum into the new financial year. FY16 earnings per share will be at least 13.0p (Edison forecast: 12.1p). Cash performance was also well ahead, with deleveraging comfortably outperforming our modelled outcome, which showed an end-March net debt figure of £26m. The full year dividend is to be recommended at 2.5p (our forecast: 2.0p). FY16 numbers and FY17 est...

Update: Non-stationary stationery

International Greetings’ (IGR) Q3 trading update shows that the key Christmas sales period has gone to plan and that the group is on track to meet market forecasts for the year to end March. The regaining of positive momentum in the US is particularly encouraging, with the new management expanding horizons with exports into Canada, Mexico and Brazil. The share price has performed well over recent months and the valuation is now a fairer reflection of progress to date and the prospects for cont...

Update: Roll on Christmas

International Greetings (IGR) has delivered a good set of interims, notable particularly for the improving US performance and further progress in bringing down debt. The order book underpins expected growth for the remainder of the financial year and is on track for FY17. The group’s investment in its manufacturing facilities is delivering targeted production efficiencies and bolstering its positioning as a leader in compliant supply-chain. Following strong performance over the last few months...

Update: Christmas rolling out to plan

IGR’s pre-close update confirms that trading is as expected in the run up to the key Christmas sell-through period. With a ‘solid’ order book and good progress in new and key accounts in the US, momentum is well established to drive the top line, despite dull underlying markets. Further investment in manufacturing efficiency is delivering the anticipated returns and gives a clear differentiator for retailers concerned with supply-chain compliance. The share price is recognising some of the...

Outlook: Many happy returns

International Greetings has delivered strong growth in earnings, ended its financial year with net debt below previous estimates and returned to the dividend list a year ahead of earlier expectations. While underlying markets provide little stimulus, there remains plenty of scope for the group to grow its top line through increase in market share, particularly in the large US market, leveraging its highly efficient manufacturing production and strengths in global sourcing. The share price is now...

Update: Investment pays dividends

Now two years into its three-year plan to grow profits, reduce debt and drive earnings, International Greetings (IGR) is hitting its targets well ahead of schedule. The year-end update outlines a strong Q4 (with March an important trading month for the group), meaning our earlier forecasts for profits, debt and EPS will all have been comfortably exceeded. Historic leverage of under two times EBITDA clears the way for a welcome return to the dividend list. Management’s credentials on delivery a...

Update: Frozen hot property

International Greetings’ Q3 trading update indicates a good Christmas performance and results for the year tracking in line with market forecasts. Clean sell-through on the high street should buoy retail confidence for this year, with a particularly strong continuing outlook for the Frozen and Despicable Me licensed lines. Investment in manufacturing facilities is paying off in terms of efficiency, driving the FY16 margin in territories where the spending has taken place. The cash profits shou...

Institutional Comment: Daily comment

Update: Playing its cards right

International Greetings (IGR) is one year into a three-year plan to grow profits, pay down debt and drive up earnings per share and is, to date, on track. H115 results were broadly in line, despite currency headwinds on the top line, with earnings already starting to benefit from the capital investment programme, reduced interest costs and a lower tax charge. Our FY15 and FY16 numbers are unchanged. Although net debt at the half year was up, our year-end forecast remains £36m, which is tantalis...

Outlook: The whole package

International Greetings (IGR) has delivered results a little ahead of market expectations despite the drags of currency translation and bad weather in the US in Q114. The investments made in manufacturing efficiency should now start to show in margins. Alongside reduced interest costs and a lower tax charge, this should drive earnings in spite of the lack of growth in underlying markets. The improved balance sheet gives IGR the flexibility to make further bolt-on acquisitions without compromisin...

Institutional Comment: Daily comment