REG - discoverIE Group plc - Trading Update

DiscoverieAnnouncement

24/07/2023 07:00

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RNS Number : 8510G  discoverIE Group plc  24 July 2023

 

For Release

7.00am, 24 July 2023

 

discoverIE Group plc

 Trading Update

 

Good start to the new year with continued organic growth

 

 

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 2024 ("the Period").

 

The Group's positive trading momentum of the final quarter last year continued
into the current year with organic sales growth at a similar level in the
first quarter, and earnings for the Period being in line with the Board's
expectations.

 

Group sales for the Period were 4% ahead of last year((1)) comprising 3%
organic growth((2)), 2% from acquisitions less 1% from foreign exchange((3)),
with similar organic growth in both divisions.

 

Gross margins in the Period continued to be resilient and ahead of last year
organically.

 

As expected, the order book continued to normalise gradually through the
Period from the record level at 30 September 2022 as it converts into sales.
The order book remains strong and provides good visibility of demand in the
current year.

 

With a clear strategy focused on long-term, high quality, structural and UN
SDG-aligned growth markets across Europe, North America and Asia, a
diversified customer base, a strong order book and pipeline of acquisition
opportunities, the Group is well positioned to make further progress.

 

 

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 (mailto:discoverIE@buchanan.uk.com)

 

Notes

1.     Growth rates refer to the comparable prior year period unless
stated.

 

2.     Organic growth for the Group compared with last year is calculated
at constant exchange rates ("CER") and is shown excluding the first 12 months
of acquisitions post completion (CDT in June 2022 and Magnasphere in January
2023).

 

3.     In calculating CER for the Period, the average sterling rate of
exchange weakened 3% against the Euro and 1% against the US Dollar compared
with the average rates for last year, while strengthening 8% on average
against the three Nordic currencies.

 

4.     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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