Highlights

  • IGR shares jumped 32.98% to GBX 63.50 per share following the trading update.
  • FY2026 revenue is expected at USD 280–285 million in FY26, above previous guidance.
  • Net cash is projected at USD 55–60 million, ahead of market expectations.

IG Design Group PLC (LON:IGR) shares climbed sharply in morning trading after the company issued a trading update pointing to revenue, profit and cash ahead of expectations. The stock was up 32.98% at 63.50p as of 11 February at 10:19am.

The rally follows a Buy rating from Canaccord Genuity, which set a target price of GBX 130, more than double the current share price.

Shares Rally on Upgraded Outlook

The sharp move higher came after the Group said it expects to deliver results at the upper end of previously stated guidance for the financial year ending 31 March 2026 (FY2026), and above current market consensus.

For FY2026, revenues are projected at approximately USD 280–285 million, compared with prior guidance of USD 270–280 million. Final quarter sales are expected to be in line with the previous year. Adjusted operating margin is forecast at around 4%, at the higher end of earlier expectations.

Interest income is also anticipated to exceed market forecasts, leading to adjusted profit surpassing consensus estimates.

Cash Position Beats Forecasts

The Group reported that full-year net cash is expected to reach approximately USD 55–60 million, exceeding market expectations by USD 15–20 million. Previous guidance had indicated USD 40–45 million.

This improvement has been attributed to disciplined cash and working capital management across the continuing business, following the disposal of DG Americas announced in May 2025.

In addition, a provisional agreement has been reached for the sale of a surplus UK warehouse, with completion anticipated before year end. The transaction is expected to further increase the Group’s cash balance.

Continuing Business Performance

The trading update covers the nine months to 31 December 2025 and excludes adjusting items and losses related to the DG Americas disposal.

The Board stated that trading during the Christmas period was in line with expectations. Looking beyond FY2026, the Group reiterated prior guidance of annual revenue growth between 0–5%, adjusted operating margins of 4–5%, and sustainable cash generation of USD 6–8 million per annum.

Earlier this month, shareholders approved a capital reduction to create additional distributable reserves, enabling potential future shareholder distributions. The Group expects to publish its FY2026 results in June 2026, including an update on capital allocation policy.

The CEO recruitment process remains ongoing, with Stewart Gilliland continuing as Interim Executive Chair.

IG Design Group’s latest trading update has driven a significant share price increase, supported by higher revenue guidance and improved cash expectations. With Canaccord assigning a 130p target and FY2026 results due in June, attention now turns to delivery against upgraded forecasts and future capital allocation plans.

Frequently Asked Questions (F&Q)

  1. Why did IG Design Group shares rise today?
    Shares increased after the company reported revenue, profit and cash ahead of expectations and upgraded its FY2026 outlook.
  2. What is Canaccord’s target price for IGR?
    Canaccord Genuity has set a target price of 130p and issued a Buy rating.
  3. What is IG Design Group’s expected net cash for FY2026?
    The Group expects full-year net cash of approximately USD 55–60 million, ahead of previous guidance and market consensus.