discoverIE Group PLC (LSE:DSCV) saw its shares jump 2.3% after it said its underlying earnings will be ahead of management expectations thanks to a strong end to the financial year.
For the 12 months to March 31, 2023, the designer and manufacturer of customised electronics said sales were 16% above the same period last year driven by a mix of organic and acquisition-led growth, augmented by favourable foreign exchange rate movements.
discoverIE's order book remained higher than expected and in line with last year, as a result of stronger intake in the fourth quarter. Gross margins remained solid, and semiconductor sourcing issues have been mostly resolved.
Its operational performance continued to be strong, with the group benefiting from its broad footprint and decentralised model.
The company said it was well-funded, with a gearing ratio of 0.9x as of the period-end. This leaves substantial 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, presenting numerous potential opportunities in the new financial year.
discoverIE shares, up 6% in the year to date, opened 17.97p higher at 779.98p.