Prelims from discoverIE Group PLC (LSE:DSCV) passed muster with analysts covering the custom electronics group.
Peel Hunt in a note said: "discoverIE finished the year well, marginally beating our expectations for profit before tax and operating margin.
"Despite challenging market conditions, the group exhibited strong growth, underscoring the robustness of its business model across diverse market scenarios.
"Good visibility, positive momentum in design wins, and a healthy M&A pipeline position the group well for continued growth."
Peel is a 'buyer' of the stock up to 1,00p. Shore Capital said the share price (714.99p, down 3.6%) is up with events.
However, it added: "discoverIE is well placed to benefit from a range of long-term trends, in our view, including increased electrification in industrial applications (driven by increased automation and carbon emission reduction targets) and rail transportation, increased investment in renewable energy and an increase in AI and sensing in the medical sector."
For the 12 months ended March 31, the business posted a 10% rise in underlying profits to £57.2 million as the underlying margin grew by 1.6 percentage points to 13.1%.
Revenues of £437 million were up 1% at constant exchange rates. Investors will be rewarded with a 12p dividend, up 5% year on year.
Eye-catching in the results was the underlying operating cash flow, which was up 22% with a 103% conversion rate.
"Cash generation has again been strong reflecting both the high quality of earnings and the capital-light nature of the business," said CEO Nick Jefferies.
"Naturally, higher interest rates have taken effect although we will see the corresponding benefit if and when rates reduce."