International Greetings plc announced a major new investment initiative, new banking facilities and a trading update. The board announced that it has secured funding for and commenced the implementation of a major capital investment (£6 million net of grants) in the company's gift-wrap manufacturing facilities in the UK. This involves the rationalization of gift-wrap printing to one site instead of two, the retirement of old presses and investment in new printing equipment. This investment will enhance the quality and environmental footprint of the company's products whilst sustaining its competitive position in a core product category. Execution of the investment will take 12 months, after which point pay-back is expected to be approximately three years, excluding the potential to subsequently dispose of a surplus freehold site valued in excess of £1 million. The company is also undertaking a smaller scale, but faster pay back investment of £0.5 million at its manufacturing facilities in Savannah, Georgia, USA. The combined effect of the initiatives to update the manufacturing capability within the group, including residual costs relating to the transition in China, creates an additional exceptional charge in fiscal year 2012-2013 of just under £1 million. Further exceptional charges relating to accelerated depreciation on equipment to be replaced, decommissioning and other associated costs will also arise in later years.

International Greetings plc Board confirmed its key target Of double digit growth adjusted EPS (fully diluted pre-exceptional earnings per share) for the full year ended March 31, 2013 should be substantively in line with expectations. This has been achieved principally through strong growth to aggregate profit in the company's wholly owned businesses, in particular the USA. In addition, pressure on margins due to geographical sales mix and higher freight costs has been mitigated through effective overhead initiatives and modest top line growth. However, the impact of lower sales and contribution from its Australian JV will result in only a marginal increase in reported profit before exceptional items and tax on the prior year.

International Greetings plc reported unaudited consolidated earnings results for the six months ended September 30, 2012. For the period, the company's revenue from continuing operations was £115,207,000 compared to £110,277,000 a year ago. Operating profit before exceptional items was £5,212,000 compared to £5,207,000 a year ago. Operating profit was £4,462,000 compared to £4,127,000 a year ago. Profit before tax before exceptional items was £3,283,000 compared to £3,213,000 a year ago. Profit before tax was £2,533,000 compared to £2,133,000 a year ago. Profit from continuing operations was £1,903,000 or 3.2 pence per diluted share compared to £1,471,000 or 1.7 pence per diluted share a year ago. Profit from continuing operations attributable to owners of the parent company was £1,874,000 compared to £993,000 a year ago. Diluted adjusted earnings per share excluding exceptional items were 3.7 pence compared to 3.2 pence a year ago. Diluted earning per share was 3.2 pence compared to 1.7 pence a year ago. Net cash outflow from operating activities was £41,271,000 compared to £41,352,000 a year ago. Acquisition of intangible assets was £88,000 compared to £166,000 a year ago. Acquisition of property plant and equipment was £1,339,000 compared to £1,187,000 a year ago. Net debt as at September 30, 2012 was down by £4 million to £84.5 million compared to £88.5 million a year ago.