IG Design Group PLC (LSE:IGR) shares rose 5% in early trade following its announcement of an expected profit recovery in the second half of the year.
Despite an 11% revenue decline for the first six months, primarily due to performance challenges at DG Americas, the wrapping paper maker anticipates a stronger second half driven by cost-saving initiatives, including restructuring in DG Americas and closing its Chinese manufacturing facility.
As of September 30, the company reported a positive cash position of $7.4 million, a significant turnaround from the net debt of $15.1 million the previous year.
IG said it remains confident in meeting full-year expectations, aiming to restore pre-pandemic operating margins of 4.5% by March 2025.
In early trading, the stock was changing hands for 133.88p, up 7.38p.