A truly transformative year

G4M’s full year results to 31 March 2026 were marginally ahead of the guidance in April’s post close trading update. This rounds off a truly outstanding and transformative performance, marking a step change in the group’s scale and operational efficiency. G4M has delivered profitable market share gains in both its home UK market as well as in its international markets, capitalising on market consolidation, competitor withdrawals, and a more benign pricing environment. G4M has delivered double digit revenue growth in FY27E year to date. It continues to invest for future growth, including its UK warehousing capacity ahead of FY27 peak trading.

A truly transformative year

IG Design Group’s FY26 results were ahead of market expectations on all key metrics, as previously announced in April. Following the disposal of DG Americas (DGA) in May 2025, the group’s results will henceforth use sterling as the reporting currency. In the wake of another strong period of cash generation and the creation of distributable reserves, the group has announced a final dividend of 1.0p together with a proposed share buyback programme to bolster shareholder value and returns. Future growth will be driven by the four established strategic pillars with annual guidance unchanged for revenue growth (0% – 5%), adjusted operating margins (4% – 5%) and free cash generation (c.£5m) for FY27E and FY28E.

A sterling show with a return to dividends

IG Design has published its post-close trading update for the year ended 31 March 2026. On the back of strong trading momentum in the final quarter, the group expects to deliver higher revenues, profits, margins and year-end cash than consensus expectations ahead of this update. Year-end net cash of c.$72m is some $16m ahead of consensus expectations. The group has also announced the earnings-enhancing bolt-on acquisition of Glenart S.A., a South African manufacturer of products in the ‘Celebrate’ category. With the earlier announcement of a new CEO appointment, IG Design is well set to pursue its strategic objectives.

Further upgrades and a bolt-on acquisition

Strong Q4 trading has seen G4M deliver FY26E sales growth of 30% for the 12 months to 31 March, together with a further £0.4m uplift in FY26E profit expectations at both EBITDA and PBT levels to (not less than) £18.1m and £9.7m, respectively. Year-end net debt has reduced to £5.0m (from £6.4m) despite a £3.6m prepayment of fit-out costs for the new warehouse, which is progressing on schedule and to budget. G4M has successfully launched its new AI-based stock forecasting and purchasing platform. Importantly, G4M has continued to trade strongly into April despite the tougher comparatives.

Strength on many fronts bodes well for future

IG Design Group has issued a positive trading update for the nine months to 31 December 2025, with an improved outlook for revenue, profit and cash relative to current market consensus FY26E figures. The adjusted operating margin is expected to be at the higher end of company guidance, at around 4%. In conjunction with higher interest income than current expectations, the group’s adjusted PBT is expected to beat current market consensus. Our FY26E adjusted PBT forecast rises to $9.9m from $7.1m. Cash generation has been the standout figure, in our view, with group indications of year-end net cash of $55-60m, some $15-20m ahead of market expectations.

Ahead of expectations on all fronts

Sanderson Design Group’s (SDG) trading update for the year to 31 January 2026 shows a continuation of the positive momentum seen at the end of H1 and the early weeks of H2, as described in its October interim results. This has been led primarily by brand sales in its overseas markets, notably the US, alongside a recovery in third-party manufacturing sales. On a constant currency (CC) basis, H2 group revenue rose 3%, a swing of 6 percentage points compared with H1’s 3% CC decline. In conjunction with ongoing strategic cost-savings initiatives, the group expects adjusted underlying profits of at least £5m (FY25: £4.4m), with year-end net cash of around £9.8m (FY25: £5.8m).

Gathering momentum – a game of two halves

Gear4music (G4M) delivered a stellar Q3 peak trading performance on the back of sustained revenue momentum despite batting against tougher year-on-year (YOY) comparatives. Group revenue rose 32% to a record £64.6m, with the profit impact magnified by a 90bps increase in gross margin to 29.0%. Having upgraded its minimum FY26 EBITDA expectation to £16.7m in early December on the back of strong trading and record order dispatches for a single day on Cyber Monday, the board now expects FY26 EBITDA of not less than £17.7m, with upgraded expectations also for FY27 and FY28.

Turbocharged Q3 drives further profit upgrade

IG Design Group remains on course to meet FY26E full-year expectations following the delivery of in-line interim results. With the exit from DG Americas (DGA), the continuing group is a less-complex, cash-generative business operating with a robust platform and balance sheet. The group sees many opportunities to pursue organic growth and expansion through a focus on four long-term growth drivers – premiumisation, product diversification, customer/channel expansion, and enhanced commercial capabilities and marketing – across all of its operating regions.

Moving forward from a strong base as a less complex business

Gear4music (G4M) has delivered a strong H1 profit performance, with an EBITDA increase of £4.0m (+139%) to £6.9m from a revenue increase of 31%. The group benefitted from the implementation of its growth strategy, a more benign pricing environment following wider market consolidation, and opportunistic asset acquisitions. The latter primarily involved inventory at favourable prices, which contributed to the expansion of product gross margin. Combined with continued strong trading, the group now expects FY26E EBITDA of ‘not less than £15.0m’.

A further upgrade and warehouse investment for future growth

The key takeaway from IG Design’s post-close trading update for the six months to 30 September is that it remains on course to meet the FY26E guidance issued at its preliminary results in July. This outlook is underpinned by an H1 adjusted operating margin of 4.3%, above the full-year guided range of 3%-4%, together with strong orderbook visibility of 91%. Period-end net cash remained positive at $2m despite an outflow of $33m relating to the disposal of DG Americas (DGA) on 30 May this year.

On course to meet full-year expectations

Sanderson Design Group (SDG) has reported a small increase in adjusted underlying PBT to £2.24m for the six-month period ending 31 July 2025. This was achieved despite trading headwinds adversely affecting Brand sales and a 60bps decline in group gross margin, thanks to the group’s focus on operational cost savings. The improving Brand sales trend seen at the end of H1 has continued, with the first nine weeks of H2 seeing a 5% constant currency (CC) increase, underpinning the board’s confidence in meeting full-year expectations. Our profit forecasts are therefore unchanged.

Cost savings buttress H1; positive start to H2 underpins FY26E

Continued strong revenue momentum across Q2 has seen G4M deliver impressive revenue growth of 31% for the six months to 30 September. While the peak Christmas trading period has yet to begin, the board has consequently raised its full-year expectations once again, following the upgrades delivered previously in June and September. FY26E EBITDA is now expected to be ‘not less than £13.7m’, representing an upgrade of 14% to the current consensus estimate of £12.0m.