REG - discoverIE Group plc - Trading Update

DiscoverieAnnouncement

24/07/2025 07:00

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RNS Number : 3012S  discoverIE Group plc  24 July 2025

For Release

7.00am, 24 July 2025

 

discoverIE Group plc

Trading Update

 

Trading in line with expectations

 

 

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 the first three months of the financial year
ending 31 March 2026 ("the Period" or "Q1").

 

The Group's performance in the Period was in line with the guidance provided
at the time of the FY2024/25 results and the Board's expectations for adjusted
earnings for FY2025/26 remain unchanged.

 

Group sales for the Period were 3% ahead of last year at CER((1)).
Organically((2)), sales were in line, with performance continuing to
strengthen over last year. Acquisitions contributed 3% growth.

 

Three of our four operating units((3)) (Sensing, Connectivity and Magnetics)
each delivered good levels of organic sales growth. This was offset by the
Controls operating unit, where several large customers' demand remains subdued
through the first half of the financial year.

 

Group orders were 4% CER lower following a strong previous quarter and against
a strong first quarter last year. Excluding one large booking last year,
underlying orders grew by 2% organically. There continues to be a strong order
book for delivery through the remainder of the year.

 

Gross margins are robust and working capital tightly managed.

 

With an excellent pipeline of organic and inorganic opportunities and strong
cashflow, the Group is well positioned to continue its through-cycle growth as
market conditions further stabilise.

 

 

For further information, please contact:

 discoverIE Group
 plc

 01483 544 500

 Nick Jefferies             Group Chief Executive

 Simon Gibbins            Group Finance Director

 Lili Huang                   Head of Investor Relations

 Henry Carver               Director of Investor Relations

 Burson
 Buchanan
 0207466 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.
In calculating CER for the Period, the average Sterling rate of exchange
strengthened 6% against the US Dollar, remained at the same level against the
Euro and weakened 1% on average against the three Nordic currencies, resulting
in a 2% sales reduction due to FX translation for the Period.

 

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 (Hivolt was acquired in August 2024 and Burster in January
2025).

 

3.     Each division comprises two operating units: S&C comprises the
Sensing operating unit and the Connectivity operating unit; M&C comprises
the Magnetics operating unit and the Controls operating unit.

 

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 design and
manufacture 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, 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 achieve organic growth that is well ahead of GDP and to
supplement that with complementary acquisitions. The Group is committed to
reducing the impact of its operations on the environment in order to reach net
zero. With its key markets aligned with a sustainable future, the Group has
been awarded an ESG "A" rating by MSCI and is Regional (Europe) Top Rated and
Industry (Technology Hardware) Top Rated by Sustainalytics.

 

The Group employs c.4,500 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 FTSE 250, classified within the Electrical Components and
Equipment subsector.

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