IG Design Group PLC shares surged almost 40% to 66p after the greetings cards and celebrations specialist said revenue, profit and cash will all come in ahead of expectations this year.
In a trading update to 31 December, the maker of greetings cards, gift wrap, gift bags, crackers, partyware and seasonal decorations said performance over the key Christmas period was in line with expectations and it now expects to finish the year to 31 March 2026 at the upper end of previous guidance and ahead of market forecasts.
Revenue for the 2026 financial year is expected to be about $280-285 million, compared with prior guidance of $270-280 million.
Adjusted operating margins are seen at around 4%, the top end of its 3-4% range, while interest income is also running ahead of expectations.
Cash generation has been the standout. Net cash is forecast at $55-60 million, roughly $15-20 million ahead of market expectations, helped by tight working capital control and the agreed sale of a surplus UK warehouse.
The board said the underlying business remains on track for annual revenue growth of 0-5% and margins of 4-5%, with the chief executive search ongoing.
Shares in the group started at over 140p last year but fell below 50p, principally after an update in January where the group warned that weak retail conditions, especially in the Americas over Christmas, had outweighed turnaround progress from restructuring and cost-saving efforts.