TIDMDSCV
RNS Number : 7908V
discoverIE Group plc
26 July 2018
For Release
7.00am, 26 July 2018
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 2019,
covering the period from 1 April 2018 to 30 June 2018.
The positive trading momentum seen last year continued into the
first quarter, with the Group on track to deliver earnings in line
with our expectations.
Group sales in the period increased(1) by 12% CER(2) and 3%
organically(3) against a strong prior year comparator, and orders
increased by 16% CER and 7% organically. The Group order book, of
which over 80% is for delivery over the next twelve months, rose to
a record high of GBP135m, up 20% CER year-on-year and up 13%
organically.
New project design wins, a key driver of future organic growth,
also grew strongly with a number of successes in our key target
markets, in particular, the renewable energy, transportation and
industrial markets.
The Design & Manufacturing division ("D&M"), which
generates around 75% of Group profits, saw broad-based organic
growth with sales increasing by 5% and orders by 13% on an organic
basis as the division continues to benefit from its focus on key
structural growth markets and cross-selling.
Santon, acquired in February 2018 and operating within D&M,
has won a number of new projects in its industrial and
transportation business for delivery this year. Sales in its solar
business slowed following a reduction of Chinese feed-in tariffs,
the potential for which was anticipated in the transaction
structure at the time of acquisition, and are expected to recover
as the market adapts to lower subsidies.
In the Custom Supply division, sales for the first quarter grew
by 1% organically with project design wins growing strongly as
expected.
Group gross margin increased over the prior year, reflecting the
continued focus on products with higher added value.
With a clear organic growth strategy 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
Helen Tarbet
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 of exchange weakened 2% against the Euro compared
with the average rate for the same period last year, strengthened
7% against the US Dollar and was up 1% on average against the three
Nordic currencies.
3. Organic growth for the Group is calculated at constant exchange rates including the equivalent pre-acquisition period of Santon which was acquired last financial year on 1 February 2018.
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 (previously Acal 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.4,000 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 GBP0.4bn. Over the last five years, revenue and
underlying earnings per share have 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
TSTLLFSRDFIEFIT
(END) Dow Jones Newswires
July 26, 2018 02:00 ET (06:00 GMT)
Discoverie (LSE:DSCV)
Historical Stock Chart
From Aug 2024 to Sep 2024
Discoverie (LSE:DSCV)
Historical Stock Chart
From Sep 2023 to Sep 2024