Customised electronics specialist discoverIE Group PLC is on track to meet full-year expectations after a strong first half.
For the six months ended 30 September 2023, it delivered £222 million in sales, up 4% at constant exchange rates, and there was a 1.4 percentage point increase to the operating margin to 12.9%. Consequently, underlying operating profit grew by 12% to £28.6 million.
discoverIE reported a profit before tax of £16 million, an 8% increase from the previous year, and a fully diluted EPS of 11.7p, up 7%. The interim dividend rises by 6% to 3.75p.
The company highlighted its robust sales growth and operational efficiencies as driving strong results.
Further progress was made towards key targets. As mentioned above, the operating margin increased, and so did operating cash flow for the last 12 months, which was up 36% with a 91% conversion rate, while the return on capital employed (ROCE) stood at 15.1%, aligning with the company's target.
The period ended with an order book of £203 million, providing good forward visibility. Two high-margin acquisitions were completed for £65 million, with integrations progressing as planned. At the same time, the group's gearing was at the lower end of the target range.
Chief executive Nick Jefferies said: "We are focused on generating organic growth in sustainable markets, enhanced by earnings accretive acquisitions, and to this end our design wins and our acquisition pipeline are stronger than ever.
"The group is well positioned to continue making good progress and remains on track to deliver full-year underlying earnings in line with the board's expectations."