A debt-free, cash-rich turnaround trading at a deeply discounted valuation after shedding its loss-making US operations.
Overview
IG Design Group has completed a decisive reset by divesting its loss-making DG Americas unit, leaving a simpler, debt-free, cash-rich international business. At 86.0p, the market capitalization is £84.55m, yet net cash is £54.6m, meaning the operating business is valued at only £29.95m. Against £9.6m of adjusted operating profit, the continuing group trades on just 3.12x EV/adjusted operating profit. A restored dividend, 10% buyback, new CEO, and Glenart acquisition create strong catalysts for recovery.