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(Alliance News) - discoverIE Group PLC on Tuesday said it is on track to deliver full-year underlying earnings in line with the board's expectations, noting recent positive order momentum.
In a trading update for the four months that ended January 31, the Guildford, Surrey-based customised electronics manufacturer and designer reported that orders in the period grew by 3% organically year-on-year. This is the first growth in orders since the quarter ending September 2022, discoverIE noted.
Group sales were 4% lower at constant exchange rates, discoverIE said, following two years of strong growth when sales increased by around 50%. Revenue growth of 3% from acquisitions partly offset a 7% reduction in organic sales as customers processed their inventory reductions, as expected.
discoverIE said year-to-date group sales increased by 1% at constant currency, comprising 3% from acquisitions, offset by organic sales being 2% lower. It said it continues to perform well through the cycle with "strong gross margins and tight control of operating expenses", noting year-to-date underlying profit being higher than last year organically and augmented by the contribution from acquisitions.
The acquisitions of Silvertel in August and 2J Antennas in September are performing "as expected with integrations proceeding as planned", discoverIE said, noting cash flow continuing to be strong with gearing reducing to 1.5 times at December 31 from 1.6 times on September 30.
Looking ahead, discoverIE said it 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.
"With a clear strategy focused on structural and sustainable international growth, a diversified customer base, a healthy order book and record pipeline of design wins and acquisition opportunities, the group has a resilient business model that, despite varied market conditions, is well positioned to make further good progress on its key priorities," discoverIE said.
Shares in discoverIE were down 1.7% to 753.00 pence each in London early Tuesday.
By Greg Rosenvinge, Alliance News senior reporter
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