discoverIE is a leading international designer and manufacturer of customised electronics to industry, supplying customer-specific electronic products and solutions to original equipment manufacturers.
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discoverIE has seen a strong bounce-back in trading after the worst of the COVID pandemic, with organic revenue growth of 18% y-o-y in FY22 and 14% versus FY20 (pre-COVID). The combination of organic growth and recent high-margin acquisitions generated underlying operating profit growth of 34% y-o-y with a margin approaching 11%. Organic order growth of 36% y-o-y has provided a strong order book entering FY23. With FY22 underlying EPS beating our forecasts, we upgrade FY23 and introduce FY24 estimates. We expect further M&A as discoverIE continues with its strategy to consolidate the fragmented electronics market.
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 302.8 | 44.0 | 28.3 | 23.4 | 27.1 | 9.9 |
| 2022A | 379.2 | 56.1 | 41.0 | 32.1 | 19.7 | 13.9 |
| 2023E | 400.4 | 58.7 | 42.1 | 32.0 | 19.8 | 13.7 |
| 2024E | 412.4 | 60.2 | 43.7 | 33.0 | 19.2 | 11.4 |
Industry outlook
discoverIE specialises in the design and manufacture of technically demanding, bespoke electronics for industrial applications with operations throughout Europe and increasingly outside Europe. The company is focused on four target markets comprising three-quarters of group sales – renewables, electrification of transportation, medical and industrial & connectivity – all of which are long-term structural growth markets.
Last updated on 04/07/2022Content on discoverIE Group
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TMT
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Key management |
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| Nick Jefferies | CEO |
| Simon Gibbins | FD |
| Greg Davidson | Company secretary |
| Lili Huang | Head of Investor Relations |
| Malcolm Diamond | Non-executive chairman |