discoverIE Group

LN: DSCV

£305.2m market cap

416p last close

discoverIE Group (formerly Acal Group) is a leading international designer, manufacturer and supplier of customer-specific electronic products and solutions to 25,000 industrial manufacturers.

Investment summary

discoverIE reported H119 revenue growth of 11%, with 7% organic growth and 5% growth from the Santon acquisition offset by a 1% currency effect. The company saw a 13% constant currency year-on-year increase in orders to close H119 with an order book worth £131m (+18% CER, +13% organic); this provides support for growth in H2 and management sees FY19 trading in line with its expectations. We have revised our forecasts to reflect H1 trading, resulting in upgrades to our normalised EPS forecasts of 3% in FY19e and 2% in FY20e.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 338.2 24.3 17.8 19.9 20.9 13.3
2018A 387.9 29.3 22.6 23.0 18.1 13.6
2019E 428.5 35.3 26.4 26.3 15.8 13.8
2020E 445.4 37.4 28.0 27.5 15.1 10.1
Last updated on 20/02/2019
Industry outlook

discoverIE Group is a designer, manufacturer and supplier of customised electronics to industry with operations throughout Europe and increasingly outside Europe. The company is focused on growing the percentage of higher-margin specialist product through organic growth and acquisition. Its key markets (more than 50% of sales) are medical, renewables, transportation and industrial connectivity, all of which are good growth markets.

Last updated on 20/02/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 9.9 18.9 10.1
Relative* 6.3 14.3 11.0
52-week high/low 455.0p/325.0p
*% relative to local index
Key management
Nick Jefferies CEO
Simon Gibbins FD
Joanna Madge Group Company Secretary Designate

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