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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Business & education services

DiscoverIE Group posts another quarter of strong organic growth

Cross-selling initiatives generated sales of £2.3mln in the final quarter of 2017, which was nearly double the level of the prior year

Customised electronics supplier discoverIE Group PLC (LON:DSCV) said it continued to trade strongly in its fiscal third quarter.

The group, formerly known as Acal, said it remains on track to deliver a full-year performance in line with management's expectations after a good showing in the final quarter of 2017.

READ: DiscoverIE's price target raised to 450p

Group sales in the quarter were up 13% year-on-year, or 12% on a constant exchange rates (CER) basis, with like-for-like sales up 7%, driven primarily by organic growth of 11% in Design and Manufacturing.

In the Custom Supply division, sales growth was subdued; sales rose 1%, with widespread growth in continental Europe offset by soft demand in the UK.

Cross-selling initiatives for the fiscal third quarter generated sales of £2.3mln, which was nearly double the level of the prior year.

READ: DiscoverIE's price target lifted by finnCap on back of sector-beating growth rate

Group orders remained strong, growing by 4% organically with a book-to-bill ratio of 1.09, driven by Design & Manufacturing organic growth of 10%.

The group's gross margin improved in the fiscal third quarter by around half a percentage point from the first half, as anticipated by management.

Shares in DiscoverIE were up 0.9% at 385.48p in the first hour of trading.

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