REG - discoverIE Group plc - First Half Trading Update

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RNS Number : 1838D  discoverIE Group plc  14 October 2025

For Release

7.00am, 14 October 2025

 

discoverIE Group plc

 

First Half Trading Update

 

First half earnings in line with Board expectations; order growth driving
momentum

 

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 six months of the financial year
ending 31 March 2026 ("the Period" or "H1").

 

The Group delivered strong operational and cash performance through the Period
with improving growth trends, in line with the Board's adjusted earnings
expectations for this financial year.

 

Group sales for the Period were 3% ahead of last year at CER((1)) (2% higher
on a reported basis). Organically((2)), sales increased by 0.5% in the Period
and by 1% in the second quarter, with performance trends strengthening over
the prior year and sequentially. Acquisitions contributed a further 2.5%
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, as previously reported, demand from certain
large customers was subdued during the Period.

 

Group orders for the Period were 5% ahead of last year at CER, increasing by
0.5% organically and in line with sales. In the second quarter orders
increased by 13% CER and by 8% organically and were ahead of sales. There
continues to be a strong order book for delivery through the remainder of the
financial year.

 

Gross margins have remained robust and working capital tightly managed.

 

With continuing strong operating cash flow, gearing((4)) at 30 September 2025
is expected to be 1.3x, below our target gearing range of 1.5x to 2.0x. The
Group has significant capacity to support the growing acquisition pipeline.

 

The Group is well positioned to continue its through-cycle growth both
organically and inorganically as market conditions further stabilise.

 

The interim results will be released on 2 December 2025.

 

 

 

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

 Chris Lane, Toto Berger

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

 

Notes

1.     Growth rates at constant exchange rates ("CER"). In calculating CER
for the Period, the average Sterling rate of exchange strengthened 5% against
the US Dollar, but weakened 1% against the Euro and weakened 2% on average
against the three Nordic currencies. Growth rates refer to the comparable
prior year period unless stated.

 

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.     Gearing is defined as net debt divided by underlying EBITDA
(excluding IFRS 16, annualised for acquisitions).

 

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 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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