Proactiveinvestors United Kingdom discoverIE Group PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom discoverIE Group PLC RSS feed en Tue, 23 Jul 2019 14:14:02 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190710114017_14143631/ Wed, 10 Jul 2019 11:40:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190710114017_14143631/ <![CDATA[RNS press release - Annual Report and Accounts ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190625113105_14123596/ Tue, 25 Jun 2019 11:31:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190625113105_14123596/ <![CDATA[News - discoverIE has some of the “most attractive growth prospects” in UK industrials sector, says Berenberg ]]> https://www.proactiveinvestors.co.uk/companies/news/222497/discoverie-has-some-of-the-most-attractive-growth-prospects-in-uk-industrials-sector-says-berenberg-222497.html discoverIE Group PLC (LON:DSCV) has some of the “most attractive” growth prospects in the UK industrials sector according to analysts at Berenberg, who on Thursday hiked their target price for the group to 520p from 490p.

The German bank's analysts said the custom electronics maker’s last set of full-year results showed its Design & Manufacturing (D&M) division had accounted for 61% of revenues and they expect the division to further grow to management’s target of 75% in the medium-term, which will push operating margins up towards 11% from 7%.

READ: discoverIE sparks as it hikes dividend after strong full year performance

The analysts addeed that given the D&M unit's relatively small position in a large and highly fragmented market, there was “plenty of scope” for the segment to grow both organically and through acquisitions.

They also said that the firm’s focus on its target markets of renewable energy, transportation, and medical and industrial connectivity was “appealing” given the present uncertainty in the macro industrial environment as each of the sectors had long-term structural demand for electronics.

Looking ahead, the analysts forecast that discoverIE would have around £30mln of acquisition firepower in the near term, which if deployed in similar terms to previous purchases could lift earnings by 10%.

They added that the company’s smaller size relative to competitors such as FTSE 100 listed Halma PLC (LON:HLMA) and FTSE 250 component Diploma PLC (LON:DPLM) meant it was easier to find family-run businesses whose owners would be willing to sell at a reasonable price.

Berenberg's analysts also reiterated its ‘buy’ rating on the stock, saying the opportunity presented by the company was currently “underappreciated”.

In mid-morning trading on Thursday, discoverIE’s shares were steady at 424p.

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Thu, 20 Jun 2019 10:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/222497/discoverie-has-some-of-the-most-attractive-growth-prospects-in-uk-industrials-sector-says-berenberg-222497.html
<![CDATA[Media files - discoverIE posts its best performance so far with record order book ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13566/discoverie-posts-its-best-performance-so-far-with-record-order-book-13566.html Tue, 04 Jun 2019 09:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13566/discoverie-posts-its-best-performance-so-far-with-record-order-book-13566.html <![CDATA[News - discoverIE sparks as it hikes dividend after strong full year performance ]]> https://www.proactiveinvestors.co.uk/companies/news/221438/discoverie-sparks-as-it-hikes-dividend-after-strong-full-year-performance-221438.html discoverIE Group PLC (LON:DSCV) shares threw off a few sparks on Tuesday after it upped its final dividend following a strong uplift in full year profits.

The custom electronics maker reported an underlying pre-tax profit for the year ended 31 March of £27.2mln, 24% higher than the year before, while revenues climbed 13% to £438.9mln.

READ: DiscoverIE raises £29mln to expand international footprint with two acquisitions

Organic sales and orders grew by 8% during the year, with cross-selling revenues up 20% at £10.6mln.

Underlying operating margins also increased to 7% from 6.3% in the prior year, with the group’s design & manufacturing division now accounting for 61% of sales, compared to 57% in the prior year, following a 10% uplift in sales from the segment.

As a result of the improved performance, the final dividend was hiked 6% to 6.75p per share, taking the full year payout to 9.55p.

Looking ahead, the company said it had ended the year with a record order book of £139mln and that trading in its current financial year had “started well” with several acquisition opportunities developing.

Nick Jefferies, chief executive, added that the group was “well positioned” to progress and over the last eight months had made three “high quality, higher margin” acquisitions to help grow its business.

In a note, analysts at discoverIE’s ‘house’ broker finnCap reiterated their 535p target price for the firm saying the “impressive” results provided further evidence that the company’s focus on structurally growing markets and its consolidation of a highly fragmented market would continue to drive growth, cash flow and a higher return of capital employed.

Fellow broker Peel Hunt was similarly upbeat, saying the company remained on of their “top picks” in the sector and reiterated their 500p target price and ‘buy’ rating.

The company’s shares were up 2.1% at 429p in early deals.

--Adds broker comments and share price--

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Tue, 04 Jun 2019 07:36:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/221438/discoverie-sparks-as-it-hikes-dividend-after-strong-full-year-performance-221438.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190604070003_14096997/ Tue, 04 Jun 2019 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190604070003_14096997/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190503144809_14063000/ Fri, 03 May 2019 14:48:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190503144809_14063000/ <![CDATA[RNS press release - Director LTIP Award ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190501162133_14059941/ Wed, 01 May 2019 16:21:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190501162133_14059941/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190430090002_14056953/ Tue, 30 Apr 2019 09:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190430090002_14056953/ <![CDATA[News - discoverIE steams ahead as it ends latest full year with record order book ]]> https://www.proactiveinvestors.co.uk/companies/news/219036/discoverie-steams-ahead-as-it-ends-latest-full-year-with-record-order-book-219036.html discoverIE Group PLC (LON:DSCV) designs, manufactures and supplies highly differentiated, innovative components for electronics applications.

The group – which changed its name from Acal in 2017 - provides application-specific components to original equipment manufacturers (OEMs) internationally using its in-house engineering capability.

It focuses on key markets which are driven by structural growth and increasing electronic content, namely renewable energy, transportation, medical and industrial connectivity.

It employs around 4,000 people and its principal operating units are located in Continental Europe, the UK, China, Sri Lanka, India and North America.

How’s it doing:

In its results in June, the company upped its final dividend following a strong uplift in full year profits.

The firm reported an underlying pre-tax profit for the year ended 31 March of £27.2mln, 24% higher than the year before, while revenues climbed 13% to £438.9mln.

Organic sales and orders grew by 8% during the year, with cross-selling revenues up 20% at £10.6mln.

Underlying operating margins also increased to 7% from 6.3% in the prior year, with the group’s design & manufacturing division now accounting for 61% of sales, compared to 57% in the prior year, following a 10% uplift in sales from the segment.

As a result of the improved performance, the final dividend was hiked by 6% to 6.75p per share, taking the full year payout to 9.55p.

Looking ahead, the company said it had ended the year with a record order book of £139mln and that trading in its current financial year had “started well” with several acquisition opportunities developing.

Nick Jefferies, discoverIE’s chief executive, added that the group was “well positioned” to progress and over the last eight months had made three “high quality, higher margin” acquisitions to help grow its business.

What the brokers say

In a note on 20 June, analysts at Berenberg said discoverIE had some of the “most attractive” growth prospects in the UK industrials sector.

The German bank said the company’s full-year results had shown its Design & Manufacturing (D&M) division had accounted for 61% of revenues and expected the division to further grow to management’s target of 75% in the medium-term, which would push operating margins up toward 11% from 7% in the year.

They added that given D&Ms relatively small position in a large and highly fragmented market, there was “plenty of scope” for growth both organically and through acquisitions.

The firm’s focus on its target markets of renewable energy, transportation, and medical and industrial connectivity was also “appealing” given the present uncertainty in the macro industrial environment as each of the sectors had long-term structural demand for electronics.

Looking ahead, Berenberg forecast that discoverIE would have around £30mln of acquisition firepower in the near term, which if deployed in similar terms to previous purchases could lift earnings by 10%.

They added that the company’s smaller size relative to competitors such as FTSE 100 Halma PLC (LON:HLMA) and FTSE 250 Diploma PLC (LON:DPLM) meant it was easier to find family-run businesses whose owners would be willing to sell at a reasonable price.

Berenberg currently has discoverIE pegged with a ‘buy’ rating and a target price of 520p, a 22.6% premium to the share’s close price on 19 June.

With the shares trading at around 417p as of 20 June, discoverE has a market cap of £342mln.

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Wed, 24 Apr 2019 12:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219036/discoverie-steams-ahead-as-it-ends-latest-full-year-with-record-order-book-219036.html
<![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190424112138_14050183/ Wed, 24 Apr 2019 11:21:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190424112138_14050183/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190418115726_14046599/ Thu, 18 Apr 2019 11:57:26 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190418115726_14046599/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190416130843_14043292/ Tue, 16 Apr 2019 13:08:43 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190416130843_14043292/ <![CDATA[RNS press release - Results of Placing ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190416113502_14043123/ Tue, 16 Apr 2019 11:35:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190416113502_14043123/ <![CDATA[News - DiscoverIE raises £29mln to expand international footprint with two acquisitions ]]> https://www.proactiveinvestors.co.uk/companies/news/218644/discoverie-raises-29mln-to-expand-international-footprint-with-two-acquisitions-218644.html Customised electronic components maker discoverIE Group PLC (LON:DSCV) has raised gross proceeds of around £29mln via a share placing to help finance two bolt-on acquisitions and also said that it had traded strongly in the final quarter of its financial year.

The company said brokers Peel Hunt and finnCap placed a total of 7,309,867 new ordinary shares at a price of 400p each, a 3.85% discount to Monday’s closing price, with the shares trading at 415p late morning, down 0.2%. The shares being issued represent approximately 9.96% of the company’s issued share capital prior to the placing.

READ: DiscoverIE on course to meet full-year expectations

The placing came as the company announced the acquisition of Hobart, a US-based designer and manufacturer of custom transformers, inductors and magnetic components, and Positek, a UK-based designer and manufacturer of rugged, high accuracy linear, rotary, tilt and submersible sensors.

Hobart is being acquired for an initial consideration of US$15.2mln (roughly £11.2mln), with up to another US$4.0mln (£3.1mln) due, depending on how the business performs over the next three years. In 2018, Hobart had revenues of US$13mln (£10mln) and underlying earnings (EBTIDA) of US$2.1mln (£1.6mln).

The price for Positek is £4.2mln upfront, with up to another £400,000 due dependent on how the business performs over the next 18 months. Positek reported revenues of £1.56mln in the year to the end of August 2018 and generated EBITDA of £600,000.

DiscoverIE said the acquisitions would expand the group's international footprint, with the acquired companies generating more than four-fifths of their revenue from North America. The acquisitions would also create cross-selling and synergy opportunities within the wider group, it added.

Net debt at year-end better than expected

The group said, following the acquisitions and the placing, pro forma gearing - calculated as net debt to adjusted EBITDA (annualised for acquisitions) - as at 31 March 2019 would reduce to around 1.5x from 1.8x.

"The acquisitions of Hobart and Positek continue our strategy of building a higher margin, international group that designs and manufactures customised electronics. Both companies have long-established track records of supplying high-quality products into their respective markets,” said Nick Jefferies, discoverIE's chief executive officer.

“As part of the group, both companies will gain access to our wider base of customers and with it, new sales opportunities, whilst discoverIE will gain access to efficiencies from manufacturing in Mexico and new cross-selling opportunities,” he added.

Financial year finishes with a flourish

In a separate statement, the company confirmed that trading for the financial year just ended was in line with expectations.

Group sales for the fiscal fourth quarter increased by 12% on a reported basis, by 14% on a constant exchange rates (CER) basis and by 8% organically (excluding acquisitions). Group orders also grew by 8% organically in the period.

For the year to 31 March 2019, group sales increased by 13% on a reported basis, 14% on a CER basis and by 8% organically, with orders growing 7% organically.

Within this, the group's Design & Manufacturing division delivered organic sales growth of 10% and order growth of 11%, while in the Custom Supply division, organic sales growth was 5% with order growth of 3%.

 -- Adds placing results, share price --

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Tue, 16 Apr 2019 07:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218644/discoverie-raises-29mln-to-expand-international-footprint-with-two-acquisitions-218644.html
<![CDATA[RNS press release - Acquisitions & Proposed Placing ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190416070102_14042145/ Tue, 16 Apr 2019 07:01:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190416070102_14042145/ <![CDATA[RNS press release - Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190416070012_14042070/ Tue, 16 Apr 2019 07:00:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190416070012_14042070/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190318145254_14006211/ Mon, 18 Mar 2019 14:52:54 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190318145254_14006211/ <![CDATA[RNS press release - Board and Committee Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190315070006_14003238/ Fri, 15 Mar 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190315070006_14003238/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190208092228_13963158/ Fri, 08 Feb 2019 09:22:28 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190208092228_13963158/ <![CDATA[News - DiscoverIE on course to meet full-year expectations ]]> https://www.proactiveinvestors.co.uk/companies/news/213682/discoverie-on-course-to-meet-full-year-expectations-213682.html Trading in discoverIE Group PLC’s (LON:DSCV) fiscal third quarter continued strongly leaving the group on track to meet full-year earnings expectations.

The customised electronic components maker’s sales for the final three months of 2018 increased by 18% from a year earlier on a reported basis, by 20% on a constant exchange rates (CER) basis and by 10% organically (i.e. excluding acquisitions).

READ: discoverIE surges as it hikes interim dividend amid first-half profits rise

Organic growth in the Design & Manufacturing division of 11% marginally outstripped the 9% growth in the Custom Supply division.

Growth across the group was widespread and led by the businesses in Germany and Asia. Cross-selling initiatives for the third quarter generated sales of £3.0mln, an increase of 26% from the prior year.

Group orders for the quarter remained strong, growing by 7% organically in both divisions with a book-to-bill ratio of 1.08. The group order book, of which more than 80% is for delivery over the next twelve months, rose to another record high of £145mln, up 21% on a CER basis year-on-year and up 12% organically.

The group said Cursor Controls, which was acquired in October, has performed well since joining the group with strong growth in orders and sales compared with its equivalent pre-acquisition period last year.

Santon, which was acquired in February 2018, also saw orders climb steeply in the period helping third-quarter sales grow well compared with the prior two quarters, discoverIE said.

The gross margin for the quarter remained firm and in line with the first half of the fiscal year.   

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Thu, 31 Jan 2019 07:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213682/discoverie-on-course-to-meet-full-year-expectations-213682.html
<![CDATA[RNS press release - Third Quarter Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190131070006_13952706/ Thu, 31 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20190131070006_13952706/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20181205101205_13892359/ Wed, 05 Dec 2018 10:12:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20181205101205_13892359/ <![CDATA[Media files - Strong first half sees discoverIE Group PLC's profits rise by a quarter ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11418/strong-first-half-sees-discoverie-group-plc-s-profits-rise-by-a-quarter-11418.html Tue, 04 Dec 2018 08:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11418/strong-first-half-sees-discoverie-group-plc-s-profits-rise-by-a-quarter-11418.html <![CDATA[News - discoverIE surges as it hikes interim dividend amid first half profits rise ]]> https://www.proactiveinvestors.co.uk/companies/news/210449/discoverie-surges-as-it-hikes-interim-dividend-amid-first-half-profits-rise-210449.html discoverIE Group PLC (LON:DSCV) shares surged in mid-morning Tuesday after it hiked its interim dividend amid a rise in profits of almost 25% for the first half.

The customised electronics maker reported an underlying pre-tax profit of £12.9mln, up 24% on the same period a year ago, while revenues climbed 12% at constant exchange rates to £211.7mln.

READ: DiscoverIE rises again on further reflection on yesterday's acquisition

The company’s underlying operating margins also expanded in the period to 6.8% from 6.2%, while cross-selling had grown 17% compared to last year to £4.9mln.

As a result, the group hiked its interim dividend 6% to 2.8p per share.

Nick Jefferies, discoverIE’s chief executive, said that the group’s stronger first half performance had been driven by widespread organic sales growth, with the company’s Design & Manufacturing and Custom Supply businesses growing by 10% and 2% respectively.

The growth in D&M was down to a focus on “higher growth markets” Jefferies said, with Custom Supply seeing “improved profitability” and a return to growth in the UK.

The D&M business also now accounted for 60% of group sales, up from 57% in the first half of last year, while contract design wins had risen 40% year-on-year (YOY) with 80% of these in target markets.

Looking ahead, the group said it had a “record breaking” period end order book of £131mln, up 18% YOY at constant exchange rates.

Jefferies said trading in the second half had “started well with further strong growth” and the company was on track to deliver earning in line with expectations.

READ: discoverIE Group makes bolt-on acquisition

He added that with the acquisition of human-to-machine interface products maker Cursor Controls after period-end, the company was “well positioned for continued growth” with further acquisition opportunities developing.

discoverIE purchased Cursor Controls for £19mln in cash upfront at the start of October, in a move that was expected to provide an immediate boost to the company’s underlying earnings and underlying operating margin.

Results demonstrate success of strategy, says broker

In a note to clients, analysts at City broker Peel Hunt retained their ‘Buy’ rating on the stock with a 500p price target, saying that the results demonstrated the success of the firm’s strategy as progress was made across all of its key performance indicators (KPIs).

“The growth in new design wins and order book (+18% underlying) give us confidence in the strength of the end markets” the broker said, adding that they also expected a boost from inorganic growth.

“Importantly, we are seeing the momentum continue into H2, driven in particular by the strategic focus on the four target markets of Renewable Energy, Transportation, Medical and Industrial Connectivity”.

For the full fiscal year, Peel Hunt is estimating an EBITDA of £34.7mln, up from £29.4mln last year, and a dividend yield of 2.8% compared to 2.6% last year eventually rising to 3.1% by the end of 2021.

In mid-morning trading Tuesday, discoverIE shares were up 4.9% at 363p, a 27% discount to Peel Hunt's target price.

The company has a market cap of around £254mln.

--Adds broker comment and share price--

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Tue, 04 Dec 2018 07:38:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210449/discoverie-surges-as-it-hikes-interim-dividend-amid-first-half-profits-rise-210449.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20181204070007_13889892/ Tue, 04 Dec 2018 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20181204070007_13889892/ <![CDATA[News - DiscoverIE rises again on further reflection on yesterday's acquisition ]]> https://www.proactiveinvestors.co.uk/companies/news/207380/discoverie-rises-again-on-further-reflection-on-yesterday-s-acquisition-207380.html Broker finnCap has upgraded its forecasts for discoverIE Group PLC (LON:DSCV) after the customised electronics maker’s acquisition of the Cursor Controls Group.

The broker thinks the cross-selling opportunities opened up by the acquisition are very high.

READ: discoverIE Group makes bolt-on acquisition

“Cursor supplies custom-designed trackballs, touchpads and ruggedised keyboards. Underlying operating margins of 26% and gross margins of 57% evidence the value-add of these products and we would be hard pressed to think of another product category that would be more relevant to every existing customer,” finnCap said.

More than two-thirds of Cursor’s sales are to the medical and industrial sectors, which is a particular area of focus for discoverIE (the company formerly known as Acal).

Cursor’s hands-on products may be considered a bit old-school in some quarters, thanks to advances in speech recognition but the broker says manual input and control devices remain critical to industrial original equipment manufacturers.

“With gross margins of 57.5% and the potential to now sell to every existing discoverIE client we can see why management was keen to acquire,” the broker said.

The broker’s forecast for 2020’s earnings per share has been upgraded by 3%.

The acquisition cost does mean that net debt will rise to around 1.9 times pro forma underlying earnings (EBITDA), as per finnCap’s forecasts, but the broker sees this falling to ¼ times EBITDA by 2021.

It left its target price unchanged at 488p. It is discoverIE’s corporate broker so it has no rating on the stock.

Strong first half

The acquisition followed a strong half for the group, which reported that organic sales growth increased from 3% in the first quarter to 5% in the second quarter.

The growth was driven by a “continued strong performance” in its core Design & Manufacturing division, which benefited from strong demand, previous contract wins and steadier trading in China.

READ: Customised electronics maker discoverIE enjoys strong first half

A pick-up in UK trading and another decent showing in Europe meant sales also edged higher in the smaller Custom Supply division.

As a result, first-half sales, including the impact of acquisitions, grew 13% year-on-year, while orders also grew by a similar percentage.

The higher turnover is expected to feed down to the bottom line, with gross margins increasing, reflecting the firm’s continued focus on products with higher added value.

discoverIE said it is well positioned for “further growth in the second half” given that the group order book is now 18% ahead of where it was a year ago.

Shares in discoverIE were up 18p at 395p, a 19% discount to finnCap's target price.

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Thu, 18 Oct 2018 13:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207380/discoverie-rises-again-on-further-reflection-on-yesterday-s-acquisition-207380.html
<![CDATA[News - discoverIE Group makes bolt-on acquisition ]]> https://www.proactiveinvestors.co.uk/companies/news/207271/discoverie-group-makes-bolt-on-acquisition-207271.html The Cursor Controls Group, a designer and maker of human-to-machine interface products has been acquired by discoverIE Group PLC (LON:DSCV), the customised electronics products maker.

DiscoverIE is paying £19mln upfront in cash and a further payment of up to £4mln could be paid, depending on how the acquired business performs over the next three years.

READ: Customised electronics maker discoverIE enjoys strong first half

The acquisition is expected to provide an immediate boost to discoverIE’s underlying earnings and underlying operating margin.

Cursor Control's products, which comprise trackballs, touchpads and ruggedised keyboards, are custom designed for specific applications and are highly complementary to discoverIE's existing business.

Cursor Controls’ revenues for 2017 were £7.9mln. It made a reported pre-tax profit of £0.3mln, an underlying operating profit of £2.1mln and had an underlying operating margin of 26%.

Gross assets at the end of 2017 were £9.9mln on a reported basis.

"The acquisition of Cursor Controls continues our strategy of building a differentiated, international, growth-focused electronics group with higher operating margins,2 said Nick Jefferies, the chief executive of discoverIE.

“Cursor Controls has a well-established track record of supplying high-quality trackballs, trackpads and rugged keyboards internationally and into growth markets. They will gain access to our wider base of customers and with it, new sales opportunities,” he added.

Shares in discoverIE were unchanged in the first hour of trading.


 

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Wed, 17 Oct 2018 09:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207271/discoverie-group-makes-bolt-on-acquisition-207271.html
<![CDATA[RNS press release - Acquisition ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20181017070005_13831417/ Wed, 17 Oct 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20181017070005_13831417/ <![CDATA[News - Customised electronics maker discoverIE enjoys strong first half ]]> https://www.proactiveinvestors.co.uk/companies/news/206859/customised-electronics-maker-discoverie-enjoys-strong-first-half-206859.html Customised electronics maker discoverIE Group plc (LON:DSCV) remains on track to meet market expectations this year after enjoying a “strong” second quarter.

The company, which makes everything from sensors and lasers through to high-speed cameras, saw organic sales growth increase from 3% in the first quarter to 5% in the second quarter.

READ: discoverIE makes a strong start to the year

The growth was driven by a “continued strong performance” in its core Design & Manufacturing division, which benefited from strong demand, previous contract wins and steadier trading in China.

A pick-up in UK trading and another decent showing in Europe meant sales also edged higher in the smaller Custom Supply division.

As a result, first-half sales, including the impact of acquisitions, grew 13% year-on-year, while orders also grew by a similar percentage.

The higher turnover is expected to feed down to the bottom line, with gross margins increasing, reflecting the firm’s continued focus on products with higher added value.

discoverIE said it is well positioned for “further growth in the second half” given that the group order book is now 18% ahead of where it was a year ago.

“With a clear organic growth strategy and an active pipeline of acquisition opportunities, the board expects to make further progress throughout the year.”

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Thu, 11 Oct 2018 07:37:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206859/customised-electronics-maker-discoverie-enjoys-strong-first-half-206859.html
<![CDATA[RNS press release - Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20181011070004_13824233/ Thu, 11 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20181011070004_13824233/ <![CDATA[RNS press release - Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180910151704_13785213/ Mon, 10 Sep 2018 15:17:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180910151704_13785213/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180822113021_13764613/ Wed, 22 Aug 2018 11:30:21 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180822113021_13764613/ <![CDATA[RNS press release - Result of General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180726144508_13733092/ Thu, 26 Jul 2018 14:45:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180726144508_13733092/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180726144051_13733085/ Thu, 26 Jul 2018 14:40:51 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180726144051_13733085/ <![CDATA[News - discoverIE makes a strong start to the financial year ]]> https://www.proactiveinvestors.co.uk/companies/news/201613/discoverie-makes-a-strong-start-to-the-financial-year-201613.html discoverIE Group PLC (LON:DSCV), maker and supplier of customised electronics, said it was on course to deliver earnings in line with expectations following a strong start to the financial year.

Sales rose 12% at constant exchange rates and 3% organically, while orders increased 16% at constant currencies, or 7% organically.

The order book currently stands at a record £135mln, of which 80% is due to be shipped in the next 12 months.

Gross profit margins were also up, reflecting discoverIE’s focus on products with higher added value.

Tough year-earlier comparisons

The solid performance was achieved against some tough year-earlier comparisons.

“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,” said discoverIE.

WATCH: The company's latest video 

New project design wins, a key driver of organic growth, grew strongly, while the design and manufacturing division, which generates around 75% of group profits, saw “broad-based organic growth”, investors were told.

Santon, acquired in February, has won a number of new projects in its industrial and transportation business for delivery this year.

Sales in the solar business slowed following a reduction of Chinese feed-in tariffs, though this was anticipated.

Broker upbeat

The shares, up just under £1 in the last year, were trading sideways at £4.24. Broker Peel Hunt reckons the stock is worth £5 and rates it ‘buy’.

It expects 2019 sales to be £428.1mln, up from £387.9mln, while adjusted pre-tax profit is expected to be £25.7mln, 17% ahead of the year-earlier number.

“The outlook is solid, with management confident of further progress,” said Peel Hunt analyst Henry Carver in a note to analysts.

“This is underpinned by the strength of the orderbook – not just the percentage increase, but the concentration of high quality design wins in the key target markets. Our forecasts, which are in line with consensus, remain unchanged.”

 

 

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Thu, 26 Jul 2018 07:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/201613/discoverie-makes-a-strong-start-to-the-financial-year-201613.html
<![CDATA[RNS press release - Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180726070004_13731710/ Thu, 26 Jul 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180726070004_13731710/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180711141750_13714283/ Wed, 11 Jul 2018 14:17:50 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180711141750_13714283/ <![CDATA[RNS press release - Publication of Circular and Notice of EGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180710070005_13711318/ Tue, 10 Jul 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180710070005_13711318/ <![CDATA[RNS press release - Annual Report and Accounts ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180626164631_13694553/ Tue, 26 Jun 2018 16:46:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180626164631_13694553/ <![CDATA[RNS press release - Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180619150338_13685763/ Tue, 19 Jun 2018 15:03:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180619150338_13685763/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180611105633_13674527/ Mon, 11 Jun 2018 10:56:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180611105633_13674527/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180607160838_13671616/ Thu, 07 Jun 2018 16:08:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180607160838_13671616/ <![CDATA[RNS press release - Exercise of share options ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180606090005_13668901/ Wed, 06 Jun 2018 09:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180606090005_13668901/ <![CDATA[Media files - discoverIE enjoys year of 'good progress' with strong organic growth ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9447/discoverie-enjoys-year-of-good-progress-with-strong-organic-growth-9447.html Tue, 05 Jun 2018 09:20:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9447/discoverie-enjoys-year-of-good-progress-with-strong-organic-growth-9447.html <![CDATA[News - discoverIE reports huge leap in profits as efficiency plans bear fruit ]]> https://www.proactiveinvestors.co.uk/companies/news/198242/discoverie-reports-huge-leap-in-profits-as-efficiency-plans-bear-fruit-198242.html discoverIE Group plc (LON:DSCV) saw profits more than treble last year as the customised electronics supplier and manufacturer reaped the rewards of its efficiency and cost reduction programme.

The London-listed firm implemented its efficiency plan in the 16/17 financial year which saw it shut its unprofitable Spanish business, trim management numbers and make a series of improvements to its infrastructure and manufacturing processes.

WATCH: discoverIE enjoys year of 'good progress' with strong organic growth

Despite the changes, discoverIE’s management hasn’t lost sight of sales, with revenues climbing 15% in the year ended  31 March 2018 to £387.9mln (2017: £338.2mln).

Much of that growth came from the design and manufacturing business which now accounts for more than three-quarters of the group’s total profits.

Costs as a percentage of sales fell in the year to 27.9% (2017: 30.5%). Coupled with the higher revenues, this allowed profits to soar 229% to £15.8mln (2017: £4.8mln). On an underlying basis, pre-tax profits climbed 27% to £21.9mln (2017: £17.2mln).

As a result of the strong performance, discoverIE – formerly known as Acal – increased its full-year dividend by 6% to 9.0p (2017: 8.5p).

Record year-end order book

“As expected, this has been a year of good progress,” said chief executive Nick Jefferies.

“The Design & Manufacturing division has delivered strong organic growth in revenue and profits and in Custom Supply, the efficiency programme of last year has delivered much improved profitability.”

He added: “The group order book grew by 12% to reach a new record level of £122mln and the value of new projects won during the year continued to grow well.”

Looking ahead, Jefferies said that trading in the opening couple of months of the new year has started well with continuing growth in orders and sales.

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Tue, 05 Jun 2018 07:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198242/discoverie-reports-huge-leap-in-profits-as-efficiency-plans-bear-fruit-198242.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180605070003_13666533/ Tue, 05 Jun 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180605070003_13666533/ <![CDATA[News - DiscoverIE continues strong momentum into 2018 ]]> https://www.proactiveinvestors.co.uk/companies/news/195334/discoverie-continues-strong-momentum-into-2018-195334.html Customised-electronics supplier discoverIE Group PLC (LON:DSCV) has continued the strong momentum of last year into 2018.

In its first trading update since the end of January, the company said it had continued to trade well with earnings in respect of the year to the end of March 2018 expected to be in line with management's expectations, showing strong year-on-year growth in profitability.

READ DiscoverIE Group posts another quarter of strong organic growth​

Group sales for the year increased by 15% on a reported basis, by 11% on a constant exchange rates (CER) basis and by 6% organically.

Cross-selling initiatives for the year were strong, generating sales of £9mlm, almost double the level of the prior year.

Group orders for the full year grew by 5% organically, leaving the order book on 31 March 2018 at a record financial year-end level of £122mln, up 12% year-on-year on a CER basis.

The Design & Manufacturing (D&M) division saw full-year sales grow 11% organically – up from a 10% growth rate in the first nine months of the financial year.

The D&M order book grew by 12% organically from the previous year.

In the Custom Supply division, revenue for the year was flat organically, principally reflecting a very strong prior year final quarter with the business now being more efficient and delivering greater profitability, the company said, adding that strong growth in Germany and Italy was offset by softness in domestic UK demand.

Across the group, the gross margin was higher in the second half of the financial year than in the first.

READ discoverIE buys Dutch solar power components specialist​

Santon Group, acquired on 1 February 2018, is settling in well, discoverIE said. In addition to its strong solar business, a number of new opportunities have arisen in the transportation and industrial sectors, some with customers that are common to the group.

 

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Thu, 19 Apr 2018 07:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195334/discoverie-continues-strong-momentum-into-2018-195334.html
<![CDATA[RNS press release - Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180419070002_13610159/ Thu, 19 Apr 2018 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180419070002_13610159/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180329141523_13587361/ Thu, 29 Mar 2018 14:15:23 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3616/LSE20180329141523_13587361/