REG - discoverIE Group plc - Q4 and full year trading update

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RNS Number : 8113A  discoverIE Group plc  17 April 2026

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7.00am, 17 April 2026

 

discoverIE Group plc

 

Q4 and full year trading update

 

discoverIE Group plc (LSE: DSCV, "discoverIE" or the "Group"), a leading
international designer and manufacturer of customised electronics to industry,
today issues a trading update for its fourth quarter and financial year ended
31 March 2026 ahead of the announcement of its preliminary results on 3 June
2026.

 

Fourth quarter

 

Group trading accelerated in the fourth quarter with all operating units
experiencing a strong sequential increase in demand, reflected in both orders
and sales.

 

In particular, the Magnetics & Controls division experienced a strong
pick-up in demand from major industrial and medical customers, and orders in
Controls grew strongly organically for the third consecutive quarter. The
Sensing & Connectivity division also made encouraging progress, led by
improvement in orders especially from the industrial, security and wireless
segments.

 

Group orders in the fourth quarter increased by 16% CER((1)) and by 15%
organically((2)) and were ahead of sales for the third consecutive quarter,
with customers increasing both their short-term demand and extending order
periods.

 

Group sales in the fourth quarter increased by 6% CER and by 5% organically.
Acquisitions contributed 1%.

 

Full year

 

Full year Group orders increased by 9% CER and by 5% organically and were
ahead of sales with the Group order book increasing by 6% over the first half.

 

Full year Group sales increased by 5% (both reported and CER) and by 2%
organically, with a 3% contribution from acquisitions. Organic sales for both
divisions increased by 2%. Gross margins remain robust, reflecting the
strength of our differentiated value proposition.

 

The continued focus on generating efficiencies from our international
footprint, together with reducing interest costs, has supported earnings
momentum, with the Group on-track to deliver another year of growth in
adjusted earnings per share in-line with consensus market expectations((3)).
With the acceleration in demand, we made additional investments this year in
operating capacity, with further production in Thailand and a new enlarged
facility in India, due to complete in the first half of the new financial
year, along with additional engineering and sales capacity in the US and
Europe to drive further growth.

 

Regulatory approval for the acquisition of Trival Antene d,o,o ("Trival"),
announced on 4 December 2025, has been received and completion occurred
earlier this month. Trival is a Slovenian-based designer and manufacturer of
communication antennae and masts for the defence and industrial markets.

 

With continuing strong operating cash flow, year-end gearing((4)) is expected
to have reduced to c.1.2x, with proforma gearing including Trival, expected to
be c.1.7x, comfortably within our target range.

 

The Group has a number of acquisition opportunities in development and along
with our pipeline of organic opportunities and design wins, it is very well
placed for further resilient growth.

 

 

 

 

 

For further information, please contact:

 discoverIE Group
 plc
 IR@discoverIEplc.com

 Nick Jefferies             Group Chief Executive

 Simon Gibbins            Group Finance Director

 Lili Huang                   Head of Investor Relations

 Burson
 Buchanan
 020 7466 5000

 Jamie Hooper, Toto Berger

 discoverIE@buchanan.uk.com (mailto:discoverIE@buchanan.uk.com)

 

Notes
 

1.     Growth rates refer to the comparable prior year period unless
stated. In calculating CER for the year, the average Sterling rate of exchange
strengthened 5% against the US Dollar compared to the average rate for last
year, while weakening 3% against the Euro and 5% on average against the three
Nordic currencies. In calculating CER for the fourth quarter, the average
Sterling rate of exchange strengthened 7% against the US Dollar compared to
the average rate for last year, while weakening 4% against the Euro and 7% on
average against the three Nordic currencies.

 

2.     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.

 

3.     Company compiled consensus for adjusted earnings per share is 40.1p.
Company compiled consensus can be found on www.discoverIEplc.com

 

4.     Gearing is defined as net debt divided by underlying EBITDA
(excluding IFRS 16, annualised for acquisitions). Proforma gearing includes
the acquisition of Trival (acquired April 2026) as if it had been acquired at
31 March 2026.

 

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:

 

About discoverIE Group plc

 

discoverIE Group plc is a leading international group of businesses that
design and manufacture customised 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, high quality customer relationships.

 

With a focus on key markets driven by structural growth, increasing electronic
content and sustainability, namely medical, electrification of transportation,
renewable energy, security and industrial automation & connectivity, the
Group aims to grow organically well ahead of GDP through the economic cycle
and to supplement that with complementary acquisitions, compounding growth.
 The Group is committed to reducing the impact of its operations on the
environment in order to reach net zero.

 

The Group employs c.4,600 people across 21 countries with its principal
operating units located in Mainland 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 FTSE 250, classified within the Electrical Components and
Equipment subsector.

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