£479m market cap
540p last close
discoverIE 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 acquired Sens-Tech for an initial cash consideration of £58m, partially funded by a £33m placing at 415p per share. Sens-Tech designs and manufactures specialist sensing technology and fits with discoverIE’s strategy to buy businesses supplying niche, highly customised products for critical applications. Sens-Tech increases the group’s international revenues and boosts its presence in target markets such as transportation and healthcare. This is discoverIE’s largest acquisition since Noratel in FY15; we estimate the deal is immediately earnings enhancing (FY20e EPS +2%, FY21e +5%).
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 387.9 | 29.3 | 22.6 | 23.0 | 23.5 | 17.6 |
| 2019A | 438.9 | 37.0 | 28.4 | 28.4 | 19.0 | 13.1 |
| 2020E | 472.8 | 43.5 | 33.9 | 29.5 | 18.3 | 15.9 |
| 2021E | 495.7 | 48.1 | 37.9 | 31.4 | 17.2 | 11.6 |
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 19/11/2019
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Share price graph
Balance sheet |
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| Forecast net debt (£m) | 77.3 |
| Forecast gearing ratio (%) | 38 |
Price performance
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Key management |
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| Nick Jefferies | CEO |
| Simon Gibbins | FD |
| Joanna Madge | Group Company Secretary Designate |
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