discoverIE Group PLC (LSE:DSCV) has hiked its interim dividend by 6% as profits more than doubled in the first half and underlying operating profits jumped 42%.
Confirming the rise in sales flagged last month, the designer and manufacturer of innovative components for electronic applications posted results for the six months to 30 September showing revenues up 26% to £219.7mln and underlying operating margins expanding to 11.7% from 10.3% a year ago.
Underlying operating profits increased to £25.6mln from £18mln a year earlier and reported profit before tax rose by 131% to £14.8mln.
An interim dividend of 3.55p was declared, up from 3.35p a year ago, with the FTSE 250-listed company boasting further progress made towards key targets and confirming the second half has started well.
As well as announcing new science-based commitments to reach scope 1 and 2 net zero carbon emissions by 2030 and scope 3 by 2040, chief executive Nick Jefferies said the rise in sales and “good operating efficiencies” were behind the growth in underlying earnings.
With sales outside Europe increasing to 41% of total sales from 40% a year ago, and operating units located in Continental Europe, the UK, China, Sri Lanka, India and North America, he said the group’s international footprint enables it to respond quickly to production movements.
Jefferies added: “The second half has started well with continued organic sales growth over last year and a record order book level, which we expect to begin to normalise as it converts into sales through the second half of the year.
"The group is on track to deliver full-year underlying earnings in line with the board's expectations.”
Addressing the gloomy macroeconomic backdrop, the discoverIE boss said the group is “well positioned in a changing world”, with products that are “essential in customers' applications and amount to a small proportion of their spend”, with revenue visibility, stable margins and a history of proving resilient through differing market conditions.