discoverIE Group

LN: DSCV

Market Cap£886.8m

Last Close 929p

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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Investment summary

With the proposed sale of Acal BFi, discoverIE is taking the final step to exit the Custom Supply business. Gross proceeds of £50m will be used to reduce debt, providing further headroom for Design & Manufacturing (D&M) acquisitions. We estimate that moving away from this lower-margin business will boost group underlying operating margins from 8.2% to 10.2% in FY22 and from 8.6% to 10.6% in FY23. The disposal leaves management fully focused on the growth of the D&M business and increases exposure to structural growth markets.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 297.9 43.6 27.3 25.1 37.0 16.3
2021A 302.8 44.0 28.3 23.4 39.7 14.5
2022E 365.9 52.0 36.0 27.8 33.4 20.8
2023E 388.1 56.5 38.6 28.9 32.1 17.4
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 two-thirds of sales) are medical, renewables, transportation and industrial connectivity, all of which are good growth markets.

Last updated on 18/01/2022
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Share price graph
Balance sheet
Forecast net cash (£m) 42.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.9) (13.7) 25.9
Relative* (6.9) (16.8) 12.2
52-week high/low 1262.0p/610.0p
*% relative to local index
Key management
Nick Jefferies CEO
Simon Gibbins FD
Greg Davidson Company secretary
Lili Huang Head of Investor Relations
Malcolm Diamond Non-executive chairman