DiscoverIE sees FY in line as order book hits record

Customised electronics maker discoverIE reported a rise in first-half sales and said it was on track to deliver annual underlying earnings in line with expectations, driven by a stronger-than-expected order book.

The company on Thursday said sales were up 23% year on year on a constant exchange rates basis.

Orders reached a record £257m compared with £224m million a year earlier. DiscoverIE said it expected the order-book level to start normalising as it converted these into sales.

"Gross margins in the period continued to be resilient and the semiconductor sourcing issues flagged last year, impacting two of our 21 businesses, are gradually improving although supply still remains constrained", the company said in a trading update.

Organic sales were 14% ahead, with sales rising by 17% in the Magnetics & Controls division and by 11% in the Sensing & Connectivity division.

Reporting by Frank Prenesti for Sharecast