TIDMDSCV
RNS Number : 3872L
discoverIE Group plc
19 April 2018
19 April 2018
discoverIE Group plc
Full Year Trading Update
discoverIE Group plc (LSE: DSCV, "discoverIE" or the "Group"), a
leading international designer, manufacturer and supplier of
customised electronics to industry, today issues a trading update
for the year ended 31 March 2018 ahead of announcing of its full
year results on 5 June 2018.
Trading since our last update on 31 January 2018 has continued
well with full year earnings anticipated to be in line with
management expectations reflecting strong growth in year-on-year
profitability.
Group sales for the year increased by 15%(1) on a reported
basis, by 11% CER(2) and by 6% organically(3) . Cross-selling
initiatives for the year were strong, generating sales of GBP9m,
almost double the level of the prior year. Group orders for the
full year grew by 5% organically. The order book at 31 March 2018
was GBP122m, a record year end high and 12% higher than at last
year end (CER).
In the Design & Manufacturing division ("D&M"), which
generates around 75% of the Group's profits, its strong performance
in the first nine months continued in the final quarter with double
digit organic growth in sales and orders. Sales grew across all
businesses contributing to full year growth of 11% organically and
orders growth of 10%. The D&M order book grew by 12%
organically.
In the Custom Supply division, revenue for the year was flat
organically, principally reflecting a very strong prior year final
quarter with the business now being more efficient and delivering
greater profitability. Strong growth in Germany and Italy was
offset by softness in domestic UK demand.
Group gross margin continues to strengthen, being higher in the
second half than the first.
Santon Group, acquired on 1 February 2018, is settling in well.
In addition to its strong solar business, a number of new
opportunities have arisen in the transportation and industrial
sectors, some with customers that are common to the Group.
The results for the year demonstrate the degree to which the
Group has successfully transformed into a design and
manufacturing-led business over recent years and is expected to
drive continuing growth.
For further information, please contact:
discoverIE Group plc 01483 544 500
Nick Jefferies - Group Chief Executive
Simon Gibbins - Group Finance Director
Instinctif Partners 020 7457 2020
Mark Garraway
Helen Tarbet
James Gray
Notes
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.
1. Growth rates refer to the comparable prior year period unless
stated. All growth rates are calculated using provisional,
unaudited FY18 data which is subject to change.
2. Growth rates at constant exchange rates ("CER"). The average
sterling rate of exchange for the year weakened 5% against the Euro
compared with the average rate for last year, strengthened 1%
against the US Dollar and weakened 2% on average against the three
Nordic currencies.
3. Organic growth for the Group is calculated at constant exchange rates including the equivalent pre-acquisition period of Variohm which was acquired last financial year (on 20 January 2017) and excluding the sales from Acal BFi Spain which was closed during December 2016 and Santon Group which was acquired on 1 February 2018.
4. The information contained within this announcement is deemed
by the Group to constitute inside information as stipulated under
the Market Abuse Regulation, Article 7 of EU Regulation 596/2014.
Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Notes to Editors:
About discoverIE Group plc
discoverIE Group (previously Acal plc) is an international group
of businesses that designs, manufactures and supplies innovative
components for electronic applications.
The Group provides application-specific components to original
equipment manufacturers ("OEMs") internationally. With in-house
engineering capability, the Group is able to design components to
meet customer requirements, which are then manufactured and
supplied, usually on a repeating basis, for their ongoing
production needs. This generates a high level of recurring revenue
and long term customer relationships.
By focussing on key markets which are driven by structural
growth and increasing electronic content, namely renewable energy,
transportation, medical and industrial connectivity, the Group aims
to achieve organic growth that is well ahead of GDP and to
supplement that with targeted complementary acquisitions.
The Group employs c.3,800 people and its principal operating
units are located in Continental Europe, the UK, China, Sri Lanka,
India and North America.
The Group is listed on the Main Market of the London Stock
Exchange and is a member of the FTSE Small Cap Index, classified
within the Electrical Components and Equipment subsector, and has
revenue of GBP0.4bn. Over the last five years, revenue and
underlying earnings per share have doubled.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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