IG Design Group PLC (LON:IGR) has posted a decrease in half-year revenues for both its divisions, including the newly acquired CSS Industries, though adjusted profit before tax is expected to be higher than last year.
The gift packaging designer stressed it will take all necessary actions to maximise trading opportunities in the second half, working with all customers to ensure strong service delivery throughout the key Christmas period.
It noted that customer orders are now in excess of 80% of the full-year revenue forecasts, with strong ongoing momentum in its Everyday business, such as birthday cards, particularly in the Americas.
In a trading update, the group said revenue for the six months to September 30, 2020, is expected to come in at US$435mln, with group revenues excluding CSS down 8%.
CSS brought in US$149mln of revenue in the first quarter, which was also marginally down compared to last year, but second-quarter sales aligned with 2019 levels.
The focus on costs savings as well as the initial synergies from the acquisition of CSS is expected to lift group adjusted profit before tax compared to 2019, IG Design added.
Net debt at the period end was cut to US$23mln from US$106mln a year earlier.
Shares jumped 12% to 466.7p on Monday morning.