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(Sharecast News) - Customised electronics maker discoverIE Group held full-year guidance despite a fall in sales for the four months to January 31, as orders showed signs of improvement.
Group sales in the period were 4% lower on a constant currency basis after two years of strong growth when sales rose by around 50%.
Revenue growth of 3% from acquisitions partly offset a 7% reduction in organic sales as customers processed inventory reductions, as expected. Sales at the start of the final fiscal quarter had returned to organic growth, with margins continuing to be "robust" the company said in a trading statement.
"The group continues to make good financial and strategic progress and is on track to deliver full year underlying earnings in-line with the board's expectations," it said.
"Orders in the period grew by 3% organically year-on-year with a similar sequential growth and were in line with sales. This is the first growth in orders since the quarter ending September 2022."
Year-to-date (YTD) group sales were up 1%, made up of 3% from acquisitions offset by organic sales falling 2%.
"With strong gross margins and tight control of operating expenses, the group continues to perform well through the cycle with YTD underlying profit higher than last year organically and augmented by the contribution from acquisitions," discoverIE added.
Reporting by Frank Prenesti for Sharecast.com
