Full year figures from International Greetings, the bombed-out maker of gift wrap, crackers, cards and stationery, failed to receive the warmest of welcomes from investors.

Hefty restructuring costs, as well as tough times for the retail sector, left the Hatfield-based venture nursing bottom line losses of £12m for a challenging year to March. Underlying losses on ongoing businesses amounted to £3.1m, versus profits of £17.7m a year earlier, on turnover of £194.2m (2007: £196.7m). At the adjusted earnings level, positive earnings of 29.4p made way for a 3.2p loss.

On the positive side, the company predicts that its restructured UK arm will return to profitability within the next two years. As well as restructuring its UK operations, International Greetings, now with significant manufacturing operations in low cost China, has also reduced its exposure to the UK by making acquisitions overseas, including European gift wrap and photo-frame businesses. Encouragingly, sales from mainland Europe grew by 55% last year, with the company making market share gains ‘in many of our product categories’. Management is also optimistic about the rationalised US division, which CEO Nick Fisher insists ‘offers significant organic growth potential for the group’.

Following recent acquisitions, Fisher says the focus is now on organic growth and margin enhancement and shares in the group, which have fallen from a 52-week peak of 399.5p, may have some recovery potential long-term. For now however, they are best avoided.

International Greetings	AIM	£8.73m	18.00p	0.00p
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