Britain

discoverIE steams ahead as order book expands

What discoverIE does

DiscoverIE Group PLC (LON:DSCV) designs, manufactures and supplies highly differentiated, innovative components for electronics applications.

The group – which changed its name from Acal in 2017 – provides application-specific components to original equipment manufacturers (OEMs) internationally using its in-house engineering capability.

It focuses on key markets which are driven by structural growth and increasing electronic content, namely renewable energy, transportation, medical and industrial connectivity.

It employs around 4,000 people and its principal operating units are located in Continental Europe, the UK, China, Sri Lanka, India and North America.

How it's doing

For the six months ended 30 September, the customised electronics maker delivered an underlying operating profit of £17.7mln, 22% higher than the prior year, while revenues climbed 10% to £232mln.

The growth in profits was boosted by an increase in operating margins to 7.6% from 6.8% a year ago, while the company also increased its share of non-European sales to 24% from 20% previously.

Design & Manufacturing, the companys largest division accounting for 63% of sales, also saw 7% organic growth in the period.

As a result of the improved performance, the groups interim dividend was raised by 6% to 2.97p per share.

Looking ahead, discoverIE said it had achieved a record order book at the end of the first half of £153mln, 15% higher year-on-year, while orders into the second half of the year had continued to be ahead of sales.

In a statement, Nick Jefferies, the groups chief executive, said the groups target markets were now generating two-thirds of revenue, up from less than half three years ago, and that the group was “on track to deliver full-year earnings in line with our expectations”.

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What the brokers say

Following the results in latye-November, discoverIEs house broker Peel Hunt hiked their target price for the group to 650p from 5Read More – Source