IG Design Group revenue rises 12% to about £109 million in first half
Key Facts
IG Design Group said in a trading update issued on 27 October that revenue for the six months ended 30 September 2026 was about £109 million, up approximately 12% from the corresponding period. The update came ahead of publication of unaudited interim results, so the company presented the period’s figures as estimates. It said adjusted operating profit rose to about £5.7 million, compared with £4.2 million in the same period a year earlier. That puts the improvement in profit alongside revenue growth, while the announcement did not detail each factor’s contribution to the increase. The London Stock Exchange published the update through its RNS service.
Organic growth was about 8%, according to the company, excluding the impact of the Glenart acquisition and currency translation movements. This means the overall revenue increase of about 12% also included the effects of the acquisition and currency translation movements, alongside growth in underlying activity. The company did not break down how much Glenart and currencies each contributed to the difference between the two growth rates. The comparison between the figures shows that part of the revenue growth falls outside the group’s definition of organic growth. The company provided these figures for the period ended 30 September in its update ahead of the unaudited interim results.
IG Design Group attributed the improved performance to trading momentum and effective execution of its strategic priorities, saying additional customer tender wins contributed to the period’s results. It said these additional tenders were among the factors that benefited performance, without specifying their value or separating their effect from other drivers. It also said Glenart had performed well since the acquisition and that its trading continued to be in line with the board’s expectations. This comes in the context of overall growth, which included the impact of the Glenart acquisition, while organic growth was about 8% excluding it. The announcement gave no separate estimate of the acquired company’s or the tenders’ contribution to revenue or adjusted operating profit.
Net cash stood at about £1.5 million on 30 September 2026, according to the update. The company described cash generation during the period as strong and said underlying cash outflow was broadly in line with the previous period. The disclosure combines the net cash balance at the end of the first half with the company’s description of cash movements over the six months, without reporting a figure for cash outflow. The balance gives a picture of liquidity at period-end, while the company compares underlying outflow with the previous period. The update did not include a comparable figure for net cash in the previous year.
Market consensus for fiscal 2027 includes revenue of £222 million and an adjusted operating profit margin of 4.8%, according to figures cited in the company’s announcement. The board said the group remained on track to deliver full-year results in line with market expectations. The company also said the board remained confident in the group’s prospects and expected fiscal 2027 results to be in line with guidance, despite continued macroeconomic uncertainty. The published consensus provides a benchmark for revenue and margin, while the announcement did not provide a new interim estimate for the margin in these points. The company said a comprehensive update on its strategic priorities and medium-term growth plans would be included with the interim results, without specifying a publication date in the update.