discoverIE Group

LN: DSCV

£294.9m market cap

402p 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 has reported a strong Q3 trading update, with group organic revenue growth of 10% year-on-year, up from the 7% reported in H119. Demand was strong across both divisions (Design & Manufacturing +11% organic revenue growth, Custom Supply +9%, group orders +7% organic) and recent acquisitions are making good progress. With trading in line with management expectations, we make no change to forecasts, but highlight that if growth remains as strong in Q4, we see potential for earnings upgrades.

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 20.2 12.8
2018A 387.9 29.3 22.6 23.0 17.5 13.1
2019E 428.5 35.3 26.4 26.3 15.3 13.4
2020E 445.4 37.4 28.0 27.5 14.6 9.8
Last updated on 22/03/2019
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 22/03/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.0) 5.2 (1.0)
Relative* (3.1) (2.1) (3.4)
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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