IG Design Group has issued a trading update for the first six months of FY22E. Sales rose by 11% on a like-for-like (LFL) basis but were below the Group’s expectations. The operating cost pressures outlined in the August trading update – inflation in sea freight, raw materials and labour costs, together with global supply chain disruption – have continued unabated. Despite the Group’s best efforts to mitigate these factors, H1 operating margins have been adversely affected. With the cost pressures likely to continue across FY22E and into FY23E, the Group has stated FY22E operating margins are likely to be some 175-225bps lower than last year.