discoverIE Group PLC (LSE:DSCV), the international designer and manufacturer of customised electronics, has reported a strong start to its new financial year, with orders running well ahead of sales as it completes a trio of earnings-accretive acquisitions.
The company said first-quarter trading has begun positively, with strong order growth and further sales momentum carrying over from a final quarter in which orders grew 14% organically and sales rose 5% organically.
The update accompanied preliminary results for the financial year ended 31 March 2026, in which revenue rose 5% to £443.3 million and adjusted profit before tax increased 4% to £51.9 million.
Adjusted earnings per share grew 4% to 40.3p, extending a 14% compound annual growth rate over the past decade, while the full year dividend was lifted 4% to 13.0p per share.
discoverIE completed three acquisitions in the past six months for a combined consideration of £95 million at an earnings before interest and tax multiple of nine times, adding businesses in North America, Slovenia, and the UK with margins ahead of the group's 17% operating margin target.
Free cash flow of £36.6 million represented a conversion rate of 92%, ahead of the company's 85% target.
Year-end gearing stood at 1.2 times, rising to a pro forma 2.2 times including the acquisitions, with the board expecting this to reduce to 1.8 times by March 2027.
discoverIE said full-year adjusted earnings remain in line with expectations.
