discoverIE Group plc Trading Update (3869D)
January 31 2018 - 2:00AM
UK Regulatory
TIDMDSCV
RNS Number : 3869D
discoverIE Group plc
31 January 2018
For Release
7.00am, 31 January 2018
discoverIE Group plc
Third Quarter Trading Update
discoverIE Group plc (LSE: DSCV, "discoverIE" or the "Group"), a
leading international designer, manufacturer and supplier of
customised electronics to industry, today issues a trading update
for the year ending 31 March 2018, covering the 3 month period from
1 October 2017 to 31 December 2017.
Trading in the third quarter continued strongly and the Group
remains on track to deliver its full year performance in line with
management's expectations.
Group sales for the third quarter(1) increased by 13% on a
reported basis, by 12% CER and by 7% organically, primarily driven
by organic growth of 11% in Design and Manufacturing. In Custom
Supply, sales grew by 1% reflecting widespread growth in
continental Europe, offset by softness in UK domestic demand.
Cross-selling initiatives for the third quarter generated sales of
GBP2.3m, nearly double the level of the prior year.
Group orders for the third quarter remained strong, growing by
4% organically with a book to bill ratio of 1.09, again driven by
Design & Manufacturing organic growth of 10%.
As expected, Group gross margin for the third quarter improved
over the first half, by some 0.5ppts.
In line with its strategy to grow its higher margin Design &
Manufacturing division, the Group has several acquisition
opportunities in the pipeline and has debt funding resources
available.
For further information please contact:
discoverIE Group plc
Nick Jefferies - Group Chief Executive 01483 544
Simon Gibbins - Group Finance Director 500
Instinctif
Mark Garraway
Helen Tarbet 020 7457
James Gray 2020
Notes
1. Growth rates refer to the comparable prior year period unless stated.
2. Organic growth for the Group is calculated at CER including
the equivalent pre-acquisition period of Variohm which was acquired
last financial year (on 20 January 2017) and excluding the sales
from Acal BFi Spain which was closed during December 2016.
3. The average sterling rate of exchange weakened 2% against the
Euro compared with the average rate for the same period last year,
strengthened 7% against the US Dollar and was in line on average
against the three Nordic currencies.
4. This trading update is based upon unaudited management
accounts and has been prepared solely to provide additional
information on trading to the shareholders of discoverIE Group plc.
It should not be relied on by any other party for other purposes.
Certain statements made in this update are forward-looking
statements. Such statements have been made by the Directors in good
faith using information available up until the date that they
approved this update. Forward-looking statements should be regarded
with caution because of the inherent uncertainties in economic
trends and business risks.
5. The information contained within this announcement is deemed
by the Group to constitute inside information as stipulated under
the Market Abuse Regulation, Article 7 of EU Regulation 596/2014.
Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Notes to Editors:
About discoverIE Group plc
discoverIE Group (LSE: DSCV; previously Acal plc) is an
international group of businesses that designs, manufactures and
supplies innovative components for electronic applications.
The Group provides application-specific components to original
equipment manufacturers ("OEMs") internationally. With in-house
engineering capability, we are able to design components to meet
customer requirements, which are then manufactured and supplied,
usually on a repeating basis, for their ongoing production needs.
This generates a high level of recurring revenue and long term
customer relationships.
By focussing on key markets which are driven by structural
growth and increasing electronic content, namely renewable energy,
transportation, medical and industrial connectivity, the Group aims
to achieve organic growth that is well ahead of GDP and to
supplement that with targeted complementary acquisitions.
The Group employs c.3,800 people and its principal operating
units are located in Continental Europe, the UK, China, Sri Lanka,
India and North America.
The Group is listed on the Main Market of the London Stock
Exchange and is a member of the FTSE Small Cap Index, classified
within the Electrical Components and Equipment subsector, and has
revenue of GBP0.4bn. Over the last five years, revenue and
underlying earnings per share have doubled.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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