discoverIE Group PLC higher as it highlights strong order book, significant scope for growth

discoverIE Group PLC () has said its order book “remains strong” and that it sees “significant scope for further expansion” in its design & manufacturing (D&M) division.

In a trading update for the first four months of its current year ending March 31, 2021, the customised electronics specialist said since May orders have increased by around 10{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} per month in June and July, to a level similar to sales.

READ: DiscoverIE gets upgrade after results impress Berenberg

Group sales for the whole period are around 8{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} lower than last year, however, the company said organic growth rates continued to be stronger in its target markets, led by its renewable energy and medical divisions.

discoverIE added that it “continues to be resilient in the event of any localised secondary outbreaks of coronavirus”, with one of its Indian production facilities having reopened following closure for two weeks while its other facility in the country is expected to reopen next week.

Looking ahead, the firm said it continued to see scope for expansion with “several acquisition opportunities in development”. It added that it expected to resume purchases as market conditions improve in the second half of the year.

“The discoverIE business model is resilient and flexible, underpinned by a clear strategy focused on high-quality growth markets. With a strong funnel of design wins and acquisition targets, the Group is well positioned for a return to strong growth as conditions recover”, the company said in the trading update.

discoverIE shares were up 1.6{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} at 618p in late-morning deals on Thursday.

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