TIDMDSCV
RNS Number : 6454W
discoverIE Group plc
19 April 2023
For Release
7.00am, 19 April 2023
discoverIE Group plc
Full Year Trading Update
Strong finish to the year with results ahead of Board
expectations
discoverIE Group plc (LSE: DSCV, "discoverIE" or the "Group"), a
leading international designer and manufacturer of customised
electronics to industry, today issues a trading update for its
financial year ended 31 March 2023, ahead of the announcement of
its preliminary results on 8 June 2023.
The Group's positive trading momentum continued through the
final quarter with the Group on track to deliver full year
underlying earnings ahead of the Board's expectations.
Group sales for the year were 16% ahead of last year(1) , of
which 8% was organic growth(2) , 5% from acquisitions and 3% from
foreign exchange, with 8% organic growth in both divisions. Sales
in the fourth quarter continued to be strong, despite challenging
comparators, with year-on-year growth of 8%, of which 2% was
organic growth, 3% from acquisitions and 3% foreign exchange.
The order book continues to be at a higher than expected level
and in line with last year, normalising less than previously
anticipated as a result of stronger order intake in Q4, which was
16% higher sequentially than in Q3, and in line with sales. As
previously guided, during the second half the order book has been
normalising from the record level at 30 September 2022 as it
converts into sales and we expect this to continue in the new year.
The strong order book provides good visibility of demand heading
into FY24 .
Gross margins remain robust and the semiconductor sourcing
issues flagged last year, impacting two of our 21 businesses, are
mostly resolved with availability at required levels and lead-times
returned to near normal levels. Operational performance has also
continued to be strong, with the Group benefitting from the agility
provided by its broad footprint and decentralised model.
The Group is well-funded with gearing(3) at 31 March 2023 of
c.0.9x and there remains good headroom for further growth
investment within the target gearing range of 1.5x to 2.0x. The
Group's acquisition pipeline has continued to build and presents a
number of good potential opportunities coming into the new
financial year.
With a clear strategy focused on long-term, high quality,
structural and sustainability-aligned growth markets across Europe,
North America and Asia, a diversified customer base, a strong order
book and pipeline of acquisition opportunities, the Group is well
positioned to make further progress .
For further information, please contact:
discoverIE Group plc 01483 544 500
Nick Jefferies Group Chief Executive
Simon Gibbins Group Finance Director
Lili Huang Head of Investor Relations
Buchanan 020 7466 5000
Chris Lane, Toto Berger, Jack Devoy
discoverIE@buchanan.uk.com
Notes
1. Growth rates refer to the comparable prior year period unless stated.
2. Organic growth for the Group compared with last year is
calculated at constant exchange rates ("CER") and is shown
excluding the first 12 months of acquisitions post completion (CPI
in May 2021, Antenova in August 2021, Beacon in September 2021, CDT
in June 2022 and Magnasphere in January 2023) . In calculating CER
f or the year ended 31 March 2023, the average sterling rate of
exchange weakened 2% against the Euro and 12% against the US Dollar
compared with the average rates for last year, while strengthening
2% on average against the three Nordic currencies. For the final
quarter ended 31 March 2023, the average sterling rate of exchange
weakened 5% against the Euro and 10% against the US Dollar compared
with the average rates for the same period last year, while
strengthening 1% on average against the three Nordic
currencies.
3. Gearing ratio is defined as net debt divided by underlying
EBITDA (annualised for acquisitions).
4. This trading update is based upon unaudited management
accounts which are subject to finalisation and audit, 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 and manufactures innovative electronic components for
industrial applications.
The Group provides application-specific components to original
equipment manufacturers ("OEMs") internationally through its two
divisions, Magnetics & Controls, and Sensing &
Connectivity. 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 customer relationships.
With a focus on sustainable key markets driven by structural
growth and increasing electronic content, namely renewable energy,
medical, electrification of transportation and industrial
automation & connectivity, the Group aims to achieve organic
growth that is well ahead of GDP and to supplement that with
complementary acquisitions. The Group has an ongoing commitment to
reducing the impact of its operations on the environment and with
its key markets aligned with a sustainable future, MSCI has awarded
the Group an ESG "A" rating.
The Group employs c.5,000 people across 20 countries with its
principal operating units located in Continental Europe, the UK,
China, Sri Lanka, India and North America.
discoverIE is listed on the Main Market of the London Stock
Exchange and is a member of the FTSE250, classified within the
Electrical Components and Equipment subsector.
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END
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