discoverIE Group PLC said it is on track to deliver full-year earnings in line with board expectations, with the first growth in orders since the September quarter of 2022.
The designer and manufacturer of customised electronics reported 3% organic growth in orders in the four months to the end of January compared to the same period a year earlier, with similar growth compared to the previous quarter.
Good financial and strategic progress was made, it said in the short trading statement, with strong cash flow helping reduce gearing and the pipeline boosted by further design wins.
Group sales fell 4% at constant exchange rates after two years of around 50% sales growth.
Revenue growth of 3% from acquisitions, including Silvertel in August and 2J Antennas in September, partly offset a 7% reduction in organic sales as part of the supply chain correction mentioned in previous results continuing, with further processing of inventory reductions.
Sales at the start of the fourth quarter returned to organic growth, the London-listed company said, with sales in the 10 months of the year up 1%, where 3% is from acquisitions offsetting a 2% organic fall.
Fourth-quarter margins continued to be "robust" and underlying profit for the year to date was reported to be higher than last year organically and further augmented by acquisitions.
Design wins, a key driver of future organic revenues, increased strongly in the third quarter, the company said, with around 25% growth in the year to date, with the pipeline of opportunities in development said to be strong.
A bolt-on, higher-margin acquisition was made last month to strengthen the Noratel magnetics cluster in North America for a mid-single digit EBIT multiple.
"With a clear strategy focused on structural and sustainable international growth, a diversified customer base, a healthy order book and record pipeline of design wins and acquisition opportunities, the group has a resilient business model that, despite varied market conditions, is well positioned to make further good progress on its key priorities," the company said.