IG Design Group PLC on Tuesday reported improved financial results for the third year of its turnaround strategy following the Covid-19 pandemic.

The Newport Pagnell, England-based company is a designer and manufacturer of celebration products, including greeting cards, gift wrap, Christmas crackers, gift bags, and partyware.

In the year that ended March 31, the company swung to $23.8 million pretax profit from a $18.9 million pretax loss the year prior.

Revenue declined 10% to $800.1 million from $890.3 million, meanwhile, cost of sales fell 13% to $658.5 million from $758.6 million.

In contrast with last year, the company incurred no impairment of goodwill compared to $29.1 million before.

Adjusted operating profit margins rose to 3.9% from 1.8%.

The declines were mainly driven by two factors, the first being softer consumer demand. Secondly, in the US and the UK markets, the company said it was experiencing increased risk from retailers in distress which forced management to take a more cautious approach when selling into some of their customers.

Unchanged from last year, the board continues to recommend no dividends.

Chair Stewart Gilliland said: ‘The group is well-set to complete its recovery over the coming year...Whilst the global political-economic backdrop could be better, the continued support of our customers and suppliers, who are working closely with our talented teams, positions us well’.

The company finished the year with cash and cash equivalents of $157.4 million, up 85% from a restated $85.2 million.

Looking ahead, management said IG Design is on track to return to pre-Covid-19 adjusted operating profit margins of 4.5% by March 31 2025. The company is further targeting annual sales of over $900 million and a 6% plus adjusted operating profit margin by March 2027.

IG Design shares were down 1.2% to 226.70 pence each in London on Tuesday morning.

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