TIDMDSCV
RNS Number : 2711W
discoverIE Group plc
16 April 2019
For Release
7.00am, 16 April 2019
discoverIE Group plc
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 2019 ahead of announcing its full year
results on 4 June 2019.
Trading in the fourth quarter continued strongly and the Group
expects to deliver full year earnings in line with the Board's
expectations.
Group sales for the fourth quarter increased(1) by 12% on a
reported basis, 14% CER(2) and by 8% organically (excluding
acquisitions)(3.) Group orders also grew by 8% organically in the
period.
In the Design & Manufacturing division, sales and orders
grew organically by 9%, and in Custom Supply, sales grew by 7%
organically and orders by 5%.
For the year to 31 March 2019, Group sales increased by 13% on a
reported basis, 14% CER and by 8% organically, with orders growing
7% organically. Within this, D&M delivered organic sales growth
of 10% and order growth of 11% and in Custom Supply, organic sales
growth was 5% with order growth of 3%.
Cash generation in the fourth quarter has been good with net
debt at the year end lower than expected resulting in a Group
gearing ratio(4) of 1.8x.
Conference call
discoverIE will hold a conference call for analysts and
investors at 09:00 UK time on 16 April 2019.
Details for the call are as follows:
UK FreeCall Dial-in: +44 (0) 800 376 7922
Conference ID: 5095135
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
James Gray
Notes
1. Growth rates refer to the comparable prior year period unless stated.
2. Growth rates at constant exchange rates ("CER"). For the 3
month period to 31 March 2019, the average sterling rate of
exchange strengthened 1% against the Euro compared with the same
period last year, weakened 6% against the US Dollar and was up 3%
on average against the three Nordic currencies. For the year to 31
March 2019, the average sterling rate of exchange against the Euro
was in line with the same period last year, weakened 1% against the
US Dollar and was up 3% on average against the three Nordic
currencies.
3. Organic growth for the Group is calculated at constant
exchange rates ("CER") excluding acquisitions in the last year
(Santon was acquired last financial year on 1 February 2018 and
Cursor Controls was acquired this financial year on 17 October
2018).
4. Group gearing is defined as net debt divided by underlying
EBITDA (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.
6. 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 over GBP400m. 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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