discoverIE Group plc Trading Update (6254G)
July 25 2019 - 1:00AM
UK Regulatory
TIDMDSCV
RNS Number : 6254G
discoverIE Group plc
25 July 2019
7.00am, 25 July 2019
discoverIE Group plc
First 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 first quarter of the financial year ending 31 March 2020,
covering the period from 1 April 2019 to 30 June 2019.
Trading in the first quarter has been good against strong
comparators and the Group is on track to deliver full year earnings
in line with the Board's expectations.
Group sales for the first quarter(1) increased by 8%, both on a
reported and CER(2) basis, and by 4% organically(3) , with organic
growth of 4% in the Design & Manufacturing division ("D&M")
and 3% in the Custom Supply division. Sales in the higher margin
D&M division were 64% of Group sales, up from 61% at the year
end, with gross margin for the Group in line with last year.
Group orders which grew 3% organically, were well ahead of sales
in the period with a book to bill ratio of 1.09 in D&M and 1.07
in Custom Supply. The Group order book, of which over 80% is for
delivery over the next twelve months, rose further to GBP154m, an
increase of 13% at CER and 8% organically over last year.
New project design wins, a key driver of future organic growth,
remain strong with a number of successes in our key target sectors,
in particular, the renewable energy, transportation and industrial
markets.
Hobart and Positek, which were both acquired in April this year,
are settling in well, with integration underway. Both businesses
are high quality, high margin custom design businesses, selling
into international markets, and further build our business in line
with our strategic objectives.
With a clear strategy focused on markets that offer long term
sustainable organic growth prospects and an active pipeline of
acquisition opportunities, the Board expects to make further
progress throughout the year.
For further information, please contact:
discoverIE Group plc 01483 544 500
Nick Jefferies - Group Chief
Executive
Simon Gibbins - Group Finance
Director
Instinctif Partners 0207 457 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"). The
average sterling rate against the Euro was in line with
the average rate for the same period last year, weakened
6% against the US Dollar and was up 2% on average against
the three Nordic currencies.
3. Organic growth for the Group is calculated at CER
and is shown excluding the first 12 months of acquisitions
(Cursor Controls was acquired last financial year on
17 October 2018); Hobart and Positek were both acquired
on 16 April 2019.
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.4,400 people and its principal operating
units are located in Continental Europe, the UK, China, India, Sri
Lanka 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 have both 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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