News blog

International Greetings

  • BY: Andrew Hore |
  • POSTED: 21/08/2008 |

International Greetings swung from loss to profit in the year to March 2008.

The reported loss was £12m and even if one-off items and discontinued activities are excluded the loss was still £3.1m.

Revenue from the giftwrap and greetings products supplier’s continuing activities was slightly lower at £194m. The US business made a small profit but the rest of the group lost money. The Australian joint venture is trading well. There won’t be any final dividend.

Net debt is £64.85m and there are additional financial liabilities of £16.5m. The vast majority of those debts are in the form of an overdraft. The £90m overdraft facility has been renewed and it will be reviewed at the end of August 2009. Even so, it is not ideal that such a large chunk of the borrowings are so short-term. This leaves it at the mercy of its banks when they review the facility.

Some production has been transferred to China and UK facilities rationalised.

The company’s shares fell 2p to 31.5p, which values International Greetings at £15.1m. Net asset value excluding intangible assets is £33.5m.

Management will concentrate on organic growth and believes International Greetings will return to profit this year. The full benefits of its restructuring will come through in 2009-10. 

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