Paul Fineman, ceo, also highlights a return to the classics when it comes to licensed sales.
“I guess we got lucky,” Paul Fineman, ceo of IG Design Group quipped to sister title PG Buzz, in relation to the timing of its acquisition of crafting company CSS Industries last March, with lockdowns sending sales of crafting products soaring with demand outstripping supply.
However, it was not just the performance of CSS that was reflected in IG Design Group’s latest trading statement which showed a 35% surge in turnover (taking it to $737 million), an increase in pre-tax profit as well as dramatic reduction in its borrowings.
The fact that the AIM-listed business retail customer base (including in the UK) is largely orientated towards grocers and value retailers that have been able to trade throughout lockdowns saw that revenue from its greeting cards and giftwrappings products held up strongly. The Group creates and supplies bespoke collections of counter greeting cards into Aldi, B&M, Wilko and Poundland as well as other leading grocers.
“Our greeting card business globally is in rude health. It has been one of the most resilient areas for us – and we are particularly pleased with the performance in the UK,” said Paul, who highlighted a very strong sell through, not just at Christmas, but in spring seasons too. “Sales were up double digit,” he quantified, predicting that the group will end the year having produced close to 300 million greeting cards.
On the licensing front, Paul senses that there has been a return to the classics. “The last year it has not been a case of ‘hot licences’ as we have seen classics from Disney, Star Wars and definitely Peppa Pig still up there in the UK, while in the States, sports licences have done very well for us,” he reveals.
Paul also highlighted partyware as “another of our growing categories,” the acquisition of CSS reinforcing its partyware position. “We feel confident that the next couple of years will further grow in this sector in the UK, Australia and Europe, increasing our product portfolio and design focus,” predicts Paul.
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