TIDMDSCV
RNS Number : 5332U
discoverIE Group plc
30 July 2020
For Release
7.00am, 30 July 2020
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 first four months of the year ending 31 March 2021.
Conditions in the Group's markets continue to be in line with
those anticipated at the time of the announcement of the results
for the year ended 31 March 2020. The order book remains strong
and, since May, orders have increased sequentially by around 10%
per month in each of June and July, to a level similar to sales,
resulting in a book to bill ratio for the period of 0.89:1
(compared with 0.85:1 reported last month(3) ).
Reported Group sales for the period are approximately 8% below
last year (7% below at CER(1) ), and 10% lower organically(2) .
Organic growth rates continue to be stronger in our target markets,
led by renewable energy and medical.
With internationally diverse manufacturing in 27 locations, the
Group continues to be resilient in the event of any localised
secondary outbreaks of coronavirus. Recently, following a rise in
local area cases, the Group's two Indian production facilities were
closed for a second time, again by local authority mandate, for two
weeks. One has since reopened, and the other is expected to re-open
next week, with minimal disruption to customers.
Cash flow during the first four months has continued to be
strong with gearing(4) at the end of June reducing further, to
1.2x.
The Board continues to see significant scope for further
expansion of the D&M division and with several acquisition
opportunities in development, the Group expects to resume
acquisitions as market conditions improve in the second half of the
year.
The discoverIE business model is resilient and flexible,
underpinned by a clear strategy focused on high quality growth
markets. With a strong funnel of design wins and acquisition
targets, the Group is well positioned for a return to strong growth
as conditions recover.
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
Rosie Driscoll
Notes
1. Growth rates at constant exchange rates ("CER"). The average
sterling rate of exchange weakened 1% against the Euro compared
with the average rate for last year and weakened 4% against the US
Dollar while strengthening by 8% on average against the three
Nordic currencies.
2. Organic growth for the Group is calculated at CER and is
shown excluding the first 12 months of acquisitions (Hobart and
Positek were both acquired on 15 April 2019 and Sens-Tech was
acquired on 16 October 2019).
3. A trading update for the period from 1 April to mid-June 20
was provided within last month's preliminary FY20 results
announcement dated 24 June 2020.
4. Gearing 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. 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 key markets 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, 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. Over the last five
years, underlying earnings per share has almost 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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