RNS Number : 9515V
discoverIE Group plc
20 April 2021
7.00am, 20 April 2021
discoverIE Group plc
Full Year Trading Update
Strong finish ahead of expectations and excellent order
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 2021, ahead of the announcement of its
preliminary results on 3 June 2021.
Trading momentum in the final two months of the year continued
to strengthen and the Board now expects underlying earnings for the
full year to be above the upper end of market expectations.
Group orders increased by 17% organically(1) in the last two
months with double digit growth in both divisions and builds on the
10% organic growth of the preceding 4 months, resulting in 12%
organic growth for the second half. Orders in the second half were
40% ahead of the first half with a book to bill ratio of 1.19:1.
Overall, Group orders were 2% lower organically for the full year
and ahead of sales.
Group sales in the second half were 9% ahead of the first half
with a return to organic growth of 1% in the last two months of the
year. Organically, second half sales were 3% lower. As a result,
Group sales for the full year were 3% lower, and organically 6%
lower, being 4% lower in D&M and 8% lower in Custom Supply,
driven by stronger performance in our target markets which comprise
renewable energy, medical, electrification of transportation and
industrial & connectivity , and which now account for over 70%
of Group sales.
Phoenix America and Limitor GmbH, which were acquired during the
year and have since been clustered with our Variohm business within
the D&M division, performed well and in line with expectations.
Both are delivering organic growth in orders and sales.
The Group remains well funded with good liquidity. Cash
generation continued to be strong with gearing (2) at the financial
year end reducing to 1.2x. With our target gearing range being 1.5x
to 2.0x, there is significant headroom for further acquisitions and
the pipeline remains healthy.
The strong order book and momentum provide a solid base for
sustained organic sales growth whilst further investing in growth
initiatives. With a clear strategy focused on long-term high
quality growth markets, a strong funnel of design wins and
acquisition targets, the Group is well positioned to make further
progress in the year ahead, in line with its key strategic
For further information, please contact:
discoverIE Group plc 01483 544 500
Nick Jefferies Group Chief Executive
Simon Gibbins Group Finance Director
Buchanan 020 7466 5000
Chris Lane, Toto Berger, Charlotte Slater
1. Growth rates refer to the comparable prior year period unless
stated. Organic growth for the Group is calculated at CER and is
shown excluding the first 12 months of acquisitions post completion
(Sens-Tech was acquired in October 2019, Phoenix in October 2020
and Limitor in February 2021). For the year ended 31 March 2021,
the average sterling rate of exchange against the Euro weakened by
2% compared with the average rate last year, and by 2% on average
against the three Nordic currencies, while strengthening by 3%
compared with the US dollar rate for last year.
2. Gearing ratio is defined as net debt divided by underlying
EBITDA (annualised for acquisitions). Proforma gearing reported at
the end of January 2021 was 1.35x including the acquisition of
3. 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:
About discoverIE Group plc
discoverIE Group plc is an international group of businesses
that designs, manufactures and supplies innovative components for
The Group provides application-specific components to original
equipment manufacturers ("OEMs") internationally. 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
With a focus on key markets driven by structural growth and
increasing electronic content, namely renewable energy, medical,
electrification of transportation 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 has an ongoing commitment to reducing the
impact of its operations on the environment, while its key markets
are aligned with a sustainable future.
The Group employs c.4,200 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 in the top quartile of the FTSE Small Cap Index,
classified within the Electrical Components and Equipment
subsector, and has revenues of over GBP450m.
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(END) Dow Jones Newswires
April 20, 2021 02:00 ET (06:00 GMT)