Discoverie operating profits up double-digits YOY

Electronic components manufacturer Discoverie reported a double-digit increase in profits for the year ended 31 March, thanks to strong growth in underlying operating margins.

Discoverie said on Wednesday that underlying operating profits were up 10% at £57.2m and underlying operating margins were 1.6ppts at 13.1% as it moves towards achieving its targets of 13.5% in the year ahead and 15% over the medium-term.

Underlying pre-tax profits were up 4% at £48.2m, underlying earnings per share improved 5% to 36.8p, and investors will be rewarded with a 12.0p dividend, also up 5% year-on-year.

The FTSE 250-listed company also said underlying operating cash flow was up 22% year-on-year, with a 103% conversion rate.

Revenues, on the other hand, slipped 3% to £437.0m on a statutory basis against strong comparators.

Chief executive Nick Jefferies said: "This year's results reflect another strong performance against a tougher trading backdrop, with good growth in underlying operating profits and margin, as well as underlying earnings per share. Revenues in our transportation, renewable and medical markets delivered strong organic growth whilst industrial & connectivity declined as a result of customer destocking.

"Whilst the softer market conditions in some sectors are expected to continue for the first half of the year, we have a strong pipeline of design wins, order backlog and acquisition opportunities. With the benefit of a robust balance sheet, we expect to make further progress in the year ahead, in line with the board's expectations, building on the essential role that our specialist products provide for our customers."

As of 1000 BST, Discoverie shares were up 0.0073% at 742.05p.

Reporting by Iain Gilbert at Sharecast.com