Customised-electronics supplier discoverIE Group PLC (LON:DSCV) has continued the strong momentum of last year into 2018.
In its first trading update since the end of January, the company said it had continued to trade well with earnings in respect of the year to the end of March 2018 expected to be in line with management's expectations, showing strong year-on-year growth in profitability.
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Group sales for the year increased by 15% on a reported basis, by 11% on a constant exchange rates (CER) basis and by 6% organically.
Cross-selling initiatives for the year were strong, generating sales of £9mlm, almost double the level of the prior year.
Group orders for the full year grew by 5% organically, leaving the order book on 31 March 2018 at a record financial year-end level of £122mln, up 12% year-on-year on a CER basis.
The Design & Manufacturing (D&M) division saw full-year sales grow 11% organically – up from a 10% growth rate in the first nine months of the financial year.
The D&M order book grew by 12% organically from the previous year.
In the Custom Supply division, revenue for the year was flat organically, principally reflecting a very strong prior year final quarter with the business now being more efficient and delivering greater profitability, the company said, adding that strong growth in Germany and Italy was offset by softness in domestic UK demand.
Across the group, the gross margin was higher in the second half of the financial year than in the first.
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Santon Group, acquired on 1 February 2018, is settling in well, discoverIE said. In addition to its strong solar business, a number of new opportunities have arisen in the transportation and industrial sectors, some with customers that are common to the group.