TIDMDSCV
RNS Number : 9790T
discoverIE Group plc
28 July 2022
For Release
7.00am, 28 July 2022
discoverIE Group plc
Trading Update
Strong organic growth continues
discoverIE Group plc (LSE: DSCV, "discoverIE" or "the Group"), a
leading international designer and manufacturer of customised
electronics for industrial applications , today issues a trading
update for the first three months of the financial year ending 31
March 2023 ("the Period").
The strong organic sales growth reported last financial year
continued in the first quarter this year(1) with underlying
earnings of the Group for the Period ahead of the Board's
expectations.
Group sales in the Period were 27% ahead of last year at CER(2)
, increasing by 17% organically (3) with a similar organic growth
profile in both divisions to that reported last financial year.
Orders were stronger than expected and continued to be ahead of
sales with a book to bill ratio of 1.09. The order book at 30 June
2022 increased to a new record level of GBP240m (31 March 2022:
GBP224m), being 40% higher than a year ago organically. As the year
progresses, we expect the orderbook level to begin to normalise as
it converts into sales.
Gross margins in the Period continued to be resilient and the
semiconductor sourcing issues flagged last year, impacting two of
our 21 businesses, have improved although remain tight.
One of the Group's 31 production facilities is located in Sri
Lanka where, despite the current unrest, our operations remain at
expected output levels. We are supporting local employees with cost
of living subsidies, food and transportation. Contingency plans are
being developed to temporarily move production to other Group
facilities if the situation demands it. The site's output accounts
for around 6% of Group sales.
The recently acquired CDT group(4) is settling in well to our
Contour cluster within the Sensing & Connectivity division and
the integration is on track.
With a clear strategy focused on long-term, high quality,
structural and sustainable growth across Europe, North America and
Asia, a diversified customer base, a record order book and a strong
pipeline of acquisition opportunities, the Group is well positioned
to make further good progress on its key priorities.
For further information, please contact:
discoverIE Group plc 01483 544 500
Nick Jefferies Group Chief Executive
Simon Gibbins Group Finance Director
Buchanan 020 7466 5000
Chris Lane, Toto Berger, Jack Devoy
discoverIE@buchanan.uk.com
Notes
1. Growth rates refer to the comparable prior year period unless stated.
2. Growth rates at constant exchange rates ("CER"). The average
sterling rate of exchange strengthened 2% against the Euro compared
with the average rate for the same period last year and
strengthened 3% on average against the three Nordic currencies
while weakening by 10% against the US Dollar.
3. Organic growth for the Group compared with last year is
calculated at CER and is shown excluding the first 12 months of
acquisitions post completion (CPI in May 2021, Antenova in August
2021 and Beacon in September 2021) .
4. The CDT group was acquired on 30 June 2022 for GBP5.0m on a debt free cash free basis.
5. This trading update is based upon unaudited management
accounts and has been prepared solely to provide additional
information on trading to the shareholders of discoverIE Group plc.
It should not be relied on by any other party for other purposes.
Certain statements made in this update are forward looking
statements. Such statements have been made by the Directors in good
faith using information available up until the date that they
approved this update. Forward looking statements should be regarded
with caution because of the inherent uncertainties in economic
trends and business risks.
Notes to Editors:
discoverIE Group plc is an international group of businesses
that designs and manufactures innovative electronic components for
industrial applications.
The Group provides application-specific components to original
equipment manufacturers ("OEMs") internationally through its two
divisions, Magnetics & Controls, and Sensing &
Connectivity. By designing components that meet customers' unique
requirements, which are then manufactured and supplied throughout
the life of their production, a high level of repeating revenue is
generated with long term customer relationships.
With a focus on sustainable key markets driven by structural
growth and increasing electronic content, namely renewable energy,
medical, electrification of transportation and industrial
automation & connectivity, the Group aims to achieve organic
growth that is well ahead of GDP and to supplement that with
complementary acquisitions. The Group has an ongoing commitment to
reducing the impact of its operations on the environment and with
its key markets aligned with a sustainable future, MSCI has awarded
the Group an ESG "A" rating.
The Group employs c.5,000 people across 20 countries with its
principal operating units located in Continental Europe, the UK,
China, Sri Lanka, India and North America.
discoverIE is listed on the Main Market of the London Stock
Exchange and is a member of the FTSE250, classified within the
Electrical Components and Equipment subsector.
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END
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July 28, 2022 02:00 ET (06:00 GMT)
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