DiscoverIE Group PLC trading ahead of expectations

DiscoverIE Group PLC said its performance in the first quarter of its financial year was ahead of the board’s expectations.

The designer, manufacturer and supplier of customised electronics to industry said the strong growth reported in the second half of the previous financial year had continued into the April-June quarter. Revenue was not only significantly ahead of the Coronavirus (COVID-19)-affected corresponding period of 2020 but also ahead of the same period in 2019.

Gross margins remained stable while sterling’s performance was helpful to the company this time around and rrganic growth was similar in both of the group’s divisions.

Group sales in the quarter were up 21{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} year-on-year on a constant exchange rates (CER) basis, and were up 16{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} on a like-for-like (LFL) basis on last year and up 10{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} on two years ago.

The order book at 30 June 2021 was £220mln, 50{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} higher organically than last year and 30{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} higher organically than two years ago. Orders remained well ahead of sales, growing by 83{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} and 35{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} organically compared with last year and two years ago.

At the group’s facilities in India and Sri Lanka, production capacity has returned to near-normal levels despite ongoing local COVID-related social distancing restrictions. To satisfy future demand, the fit out of a new facility at our Nogales, Mexico site is underway which will double its production capacity and is on track to begin operations in the second quarter of this financial year, discoverIE revealed.