International Greetings
AVOIDFull 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.
- Reduce text size Decrease text size
- Increase text size Increase text size
- Print article Print
- Share this article Share
- Email article to a friend Email
Market cap: £14.8m
PE Forecast: n/a
Share price: 31.5p
Subscribe today
More breaking news stories.
More extended feature articles.
And a depth of analysis you
can't find anywhere else.
Advertisement
VCT Report 2010
VCT Report 2010 uncovers the money available
for investment in every single VCT, helping you get one step ahead in the race to attract funding for your unquoted, AIM-listed or PLUS-quoted
company.
Order VCT Report 2010 today using this online form
Cash Shells Directory 2010
A comprehensive overview of cash shells on AIM and PLUS, companies that have become a significant feature on the market landscape. For more information and to order, click here or contact our marketing team on 020 7250 7056.
Coverage of AIM, techMARK and PLUS Markets
Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.
Take control of your investments
A full year's subscription to What Investment magazine for £19.95, a whopping 58% off. Get the latest news, features and expert advice on ISAs, Investment Trusts and Funds, SIPPS, Investing for Children and much much
more. Find out more here.
The Financial Times Guide to Personal Tax
is the definitive and most up-to-date guide to completing your self-assessment tax return, making sure that you get it right and on time, and showing how you can save tax. For more information and to order, click here or contact our marketing team on 020 7250 7056.
The AIM Guide Spring 2010
The new, fully updated AIM Guide is now available to buy for only £49.95 (saving you £30).
A 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies. Order your copy today Hurry, as offer ends soon!
Share recommendations and small-cap stock picks
Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.
Popular Recommendations
Advertisement
Latest Recommendations
Delcam 01/09/2010
Delcam, the international seller of CAD/CAM software to the engineering, aerospace and healthcare sectors among others, is a cash-generative small-cap seeing recovery in its markets.
Antisoma 01/09/2010
Bombed-out biotech play Antisoma is hoping two of its drugs will lead to good fortune after experiencing disaster with lung cancer treatment ASA404.
GW Pharmaceuticals 31/08/2010
GW Pharmaceuticals has won approval from Health Canada for its cannabis-based Sativex product to treat spasticity caused by Multiple Sclerosis.
Sectors
