IG Design has continued to face tough trading conditions in competitive retail markets, most notably in – though not confined to – its DG Americas (DGA) division. This has been compounded by the group’s fourth largest customer in the US filing a second time for Chapter 11 (going into administration) with adverse implications for the group’s current year results, arising from weaker sales combined with likely stock write-offs and provisions. The group is now guiding to a broadly breakeven outturn at the adjusted PBT level. This will have a knock-on effect on cash generation, and the group will not meet its previous aspiration to return adjusted operating margin to the proforma pre-pandemic level of at least 4.5% in FY25E.