Fragile backdrop, but profitable H2 to underpin FY25 results
IG Design has delivered a decline in its H1 results, reflecting the difficult market and consumer trends previously announced. The combined impact of market softness and credit risk management on revenue evolution has been exacerbated by operating cost headwinds, most notably in all freight costs. These could not, however, be fully mitigated by the benefits from the ongoing strategic initiatives at DG Americas (DGA) and further overhead cost savings. A combination of factors should deliver a profitable H2, with the group on track to deliver on its aspiration to return adjusted operating margin to the proforma pre-pandemic level of at least 4.5% in FY25E.