IG Design Group secures £40m RF facility amid strategic repositioning

IG Design Group plc, a UK-based manufacturer of celebration products such as greeting cards, gift wrap, Christmas crackers, and partyware, has taken a significant step in strengthening its financial footing. The company announced it has successfully refinanced its existing lending arrangements with a new three-year, £40m recourse receivables finance (RF) facility, jointly secured from HSBC and NatWest. This restructuring, which replaces the company’s previous facility, is designed to offer improved value and operational simplicity while ensuring ample headroom for working capital over the coming years.

The facility carries an initial margin of 1.75 per cent above benchmark interest rates, depending on the currency drawn. This compares favorably with the previous arrangement, which included a higher margin and ended following the company’s disposal of its DG Americas division in June. As a result, the company’s current overdraft will be cancelled, further simplifying its financial structure.

Despite this positive development, IG Design has faced a turbulent period. In January, the company warned that its FY2025 profit would fall significantly below both the previous year’s US$25.9m and the market’s forecast of US$32m. Revenue for the year ending March 31 declined by an estimated 9 per cent, in line with earlier projections. Particularly challenging was the US market, where DG Americas posted consistent losses amid weak demand and tariff uncertainties, prompting the £1m sale of the business in May.

Following these setbacks, CEO Paul Bal stepped down in June, with Chair Stewart Gilliland assuming executive responsibilities on an interim basis.

While technical indicators remain bearish and revenue growth lags, recent strategic moves—including the debt facility and asset sales—signal efforts to reposition the company for long-term stability. Investors and analysts await further insight when IG Design Group publishes its full-year results on 29 July 2025, followed by virtual presentations to discuss the path ahead.