Proactive Investors - Run By Investors For Investors

DiscoverIE on course to meet full-year expectations

The two acquisitions made last year - Santon and Cursor Controls - have bedded down well
Circuit board
As sweet as Raspberry Pi

Trading in discoverIE Group PLC’s (LON:DSCV) fiscal third quarter continued strongly leaving the group on track to meet full-year earnings expectations.

The customised electronic components maker’s sales for the final three months of 2018 increased by 18% from a year earlier on a reported basis, by 20% on a constant exchange rates (CER) basis and by 10% organically (i.e. excluding acquisitions).

READ: discoverIE surges as it hikes interim dividend amid first-half profits rise

Organic growth in the Design & Manufacturing division of 11% marginally outstripped the 9% growth in the Custom Supply division.

Growth across the group was widespread and led by the businesses in Germany and Asia. Cross-selling initiatives for the third quarter generated sales of £3.0mln, an increase of 26% from the prior year.

Group orders for the quarter remained strong, growing by 7% organically in both divisions with a book-to-bill ratio of 1.08. The group order book, of which more than 80% is for delivery over the next twelve months, rose to another record high of £145mln, up 21% on a CER basis year-on-year and up 12% organically.

The group said Cursor Controls, which was acquired in October, has performed well since joining the group with strong growth in orders and sales compared with its equivalent pre-acquisition period last year.

Santon, which was acquired in February 2018, also saw orders climb steeply in the period helping third-quarter sales grow well compared with the prior two quarters, discoverIE said.

The gross margin for the quarter remained firm and in line with the first half of the fiscal year.   

View full DSCV profile View Profile

discoverIE Group PLC Timeline

Related Articles

information graphic
April 15 2019
The information management specialist reported some of its strongest financial results since going public five years ago
June 20 2019
The firm reported an underlying pre-tax profit for the year ended 31 March of £27.2mln, 24% higher than the year before, while revenues climbed 13% to £438.9mln
April 05 2019
In early April, the company said it would see its shares delisted from Nasdaq First North and said it intends to apply for a future listing at another suitable venue before the end of 2019

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use