TIDMDSCV
RNS Number : 7068G
discoverIE Group plc
19 March 2020
For Release
7.00am, 19 March 2020
discoverIE Group plc
Year End 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 year ending 31 March 2020.
Following strong momentum through the year, during the fourth
quarter the Group has experienced some isolated disruption to the
business as a result of the outbreak of the COVID-19 virus.
In China, the Group operates two manufacturing facilities in
Guangdong province, and also has a number of Chinese suppliers and
customers. Following an extended shut down after the Chinese New
Year, the facilities are again operational, with production
returning to planned levels. Similarly, our Chinese suppliers have
recommenced operations and sales to our customers are returning to
normal levels, with demand recovering quickly.
The Group's Design & Manufacturing division operates a
diversified and flexible manufacturing footprint with additional
facilities in India, Sri Lanka, Thailand, South Korea, Poland,
Slovakia, the Netherlands, Belgium, UK, Germany, the Nordic region,
Mexico, US and Canada, all of which are currently operating without
major disruption. With the wellbeing of our employees being a
priority and following local regulatory guidance, discoverIE's
diversified businesses all have detailed business continuity plans
and are maintaining operational continuity.
Aside from the Chinese disruption described above, trading
elsewhere in the Group during the fourth quarter has been in line
with our expectations, against a strong comparative period in the
prior year, as we continue to benefit from the focus on our target
markets. As a result, the disruption during the fourth quarter is
expected to have a modest impact on our earnings for the year to 31
March 2020.
The Group benefits from a strong and diversified customer base,
and demand remains robust with good new order intake in March.
Whilst the Group is well prepared to respond quickly and
effectively to mitigate any further disruption from the spread of
COVID-19, the wider potential impacts entering the new financial
year are difficult to predict. The Group remains well funded, with
a strong balance sheet, good cash liquidity, over GBP100m of
headroom against its debt facilities and gearing(1) of 1.5x .
We are confident that our clear strategy focusing on the target
markets of renewable energy, medical, transportation and industrial
& connectivity to create sustainable organic growth will enable
us to continue to outperform wider industrial markets and generate
significant stakeholder value.
For further information, please contact:
discoverIE Group plc
Nick Jefferies - Group Chief Executive 01483 544 500
Simon Gibbins - Group Finance Director
Instinctif
Mark Garraway
James Gray 020 7457 2020
Notes
1. Gearing defined as net debt divided by underlying EBITDA, annualised for acquisitions.
2. 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.
3. 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.
By focusing 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.4,500 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 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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