discoverIE Group

LN: DSCV

£542.1m market cap

606p last close

discoverIE is a leading international designer, manufacturer and supplier of customised electronics to industry, supplying customer-specific electronic products and solutions to original equipment manufacturers.

Investment summary

discoverIE reported resilient trading through H121, with a revenue decline of 6% y-o-y, noting that sales in target markets performed significantly ahead of other sectors. Order intake improved through Q2 and the book-to-bill ratio for September was above 1x. With increased confidence in its outlook and a strong balance sheet, the company intends to reinstate the dividend with interims in November and has resumed its M&A strategy with the acquisition of a high margin US sensors business.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 438.9 37.0 28.4 28.4 21.3 N/A
2020A 466.4 50.9 34.6 31.8 19.1 N/A
2021E 460.5 46.0 28.8 23.7 25.6 N/A
2022E 494.8 53.6 36.2 29.9 20.3 N/A
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 21/10/2020
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Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.7) 1.7 31.5
Relative* (5.3) 8.2 59.9
52-week high/low 678.0p/378.0p
*% relative to local index
Key management
Nick Jefferies CEO
Simon Gibbins FD
Joanna Madge Group Company Secretary Designate
Malcolm Diamond Non-executive chairman

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