DiscoverIE FY underlying earnings seen ahead of expectations

Customised electronics designer and manufacturer discoverIE said on Wednesday that full-year underlying earnings were set to be ahead of the board’s expectations as it reported a jump in third-quarter sales and a strong order book.

In an update for the three months to the end of December, the company said positive trading momentum continued, with the strong order book providing good visibility of demand.

Group sales rose 11% on the previous year, of which 5% was organic, 3% from acquisitions and 3% from foreign exchange. This represents a new record high for the firm.

For the nine months to the end of December, meanwhile, group sales were 21% higher than the previous year, of which 11% was organic, 7% from acquisitions and 3% from foreign exchange, with 11% organic growth in both divisions.

"The order book remains at a high level and ahead of last year," DiscoverIE said. "As previously guided, it has begun to normalise from the record level reported at 30 September 2022 as it converts into sales and we expect this to continue through the final quarter of the year."

It said gross margins remained robust and the semiconductor sourcing issues flagged last year, which affected two of its 21 businesses, are continuing to improve.

"Accordingly, the group is on track to deliver full year underlying earnings ahead of the board's expectations.

"With a clear strategy focused on long-term, high quality, structural and sustainability-aligned growth markets across Europe, North America and Asia, a diversified customer base, a strong order book and pipeline of acquisition opportunities, the group is well positioned to make further progress."

The company also said on Wednesday that its acquisition of Magnasphere, announced last month, has now completed. Magnasphere designs and manufactures high performance magnetic sensors and switches for industrial electronic markets including access control, data centres and specialist vehicles.