discoverIE Group plc Third Quarter Trading Update (6031O)
January 31 2019 - 1:00AM
UK Regulatory
TIDMDSCV
RNS Number : 6031O
discoverIE Group plc
31 January 2019
For Release
7.00am, 31 January 2019
discoverIE Group plc
Third Quarter 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 ending 31 March 2019, covering the three month period
from 1 October 2018 to 31 December 2018.
Trading in the third quarter continued strongly and the Group
remains on track to deliver full year earnings in line with our
expectations.
Group sales for the third quarter(1) increased by 18% on a
reported basis, by 20% CER(2) and by 10% organically (excluding
acquisitions)(3) , with organic growth of 11% in Design &
Manufacturing and 9% in Custom Supply. Growth across the Group was
widespread and led by our businesses in Germany and Asia.
Cross-selling initiatives for the third quarter generated sales of
GBP3.0m, an increase of 26% on the prior year.
Group orders for the third quarter remained strong, growing by
7% organically in both divisions with a book to bill ratio of 1.08.
The Group order book, of which over 80% is for delivery over the
next twelve months, rose to another record high of GBP145m, up 21%
CER year-on-year and up 12% organically.
For the 9 months to 31 December 2018, Group sales increased by
15% CER and by 8% organically, with orders up 7% organically.
Cursor Controls, which was acquired in October has performed
well since joining the Group with strong growth in orders and sales
compared with its equivalent pre acquisition period last year.
Orders in Santon, which was acquired in February 2018, also grew
strongly in the period helping third quarter sales grow well
compared with the prior two quarters.
Group gross margin for the third quarter remains firm and in
line with the first half.
For further information, please contact:
discoverIE Group plc
Nick Jefferies - Group Chief Executive 01483 544 500
Simon Gibbins - Group Finance Director
Instinctif
Mark Garraway
James Gray 020 7457 2020
Notes
1. Growth rates refer to the comparable prior year period unless stated.
2. Growth rates at constant exchange rates ("CER"). The average
sterling rate of exchange against the Euro was in line with the
average rate for the same period last year, weakened 3% against the
US Dollar and was up 2% on average against the three Nordic
currencies.
3. Organic growth for the Group is calculated at constant
exchange rates ("CER") excluding acquisitions (Santon was acquired
last financial year on 1 February 2018 and Cursor Controls was
acquired this financial year on 17 October 2018).
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.
5. 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 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, we are 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 repeating revenue and long term
customer relationships.
By focusing 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.4,300 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 has more than doubled.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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