Design Group Reports Another Strong Performance in Year End Results
Design Group is pleased to announce its results for the year ended March 31st 2018, showing a very successful overall performance and sales and profits growth in all operating regions.
With a 5% increase in sales to £327.5 million (2017: £311.0 million) and encouraging sales and revenue growth in USA, Europe, Australia and a return to growth in the UK, this years’ results are testament to the well-diversified business that Design Group is today.
The diversity of the business can be seen in within the report, with more than 10,000 active customers, selling products in over 200,000 stores across more than 80 countries. The results show that 73% of revenues are from outside of the UK, with the remaining 27% from within the UK.
These excellent results are due, in part, to the strategic growth projects successfully executed by the Group in all regions during the financial year. These projects include the commencement of ‘not-for-resale’ paper bag manufacturing in the UK, the installation of a new state-of-the-art printing press in the Netherlands to provide incremental capacity and capability, the upgrade of the US IT systems will further enhance expansion opportunities, and the full integration of the Biscay acquisition in Australia on track for the end of summer 2018.
Not only does this strong performance show that the Group is growing globally, but it lays the foundations for further growth opportunities, as explained by CEO Paul Fineman:
“We are delighted to report that 2017/18 has seen our well-diversified business deliver a very successful overall performance, but more importantly, on-going momentum and opportunity for 2018/19 and beyond.
“Whilst we have achieved record levels of sales and profits, we have also invested for the future with fast payback capital investment of just over £9.4 million, demonstrating our confidence in the future and our determination to retain a distinct competitive advantage and to be the preferred choice for our customers and all stakeholders.
“We are very pleased to have funded strategic growth projects, capital expenditure and the Biscay acquisition over the period, whilst achieving a year-end net cash position of £4.4 million.
“Such is the strength of our performance and cash generation that we are, once again, significantly enhancing full year dividends from 4.5p to 6.00p. We look forward to continuing to provide shareholders with strong returns.
“Design Group is increasingly able to leverage our global scale as a diversified, design-led, multi-product category and multi-channel business supported by world-class manufacturing and sourcing operations.
“With the effective combination of our product and brand portfolio, together with an array of value adding services, we remain very well placed to continue to grow organically, across all regions and channels. This, together with carefully considered M&A opportunities supported by an ever strengthening balance sheet, provides a very bright future.”