discoverIE Group

LN: DSCV

£608.3m market cap

680p 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

Trading has improved through the course of H221, with order intake for the four months to the end of January up 10% y-o-y on an organic basis and average monthly sales up 4% compared to H121. On an organic basis, Design & Manufacturing sales were 3% lower y-o-y, while Custom Supply sales were 10% lower y-o-y, with group sales down 5% y-o-y. As discoverIE expects to report underlying EPS at the upper end of consensus forecasts, we have raised our FY21 forecasts, driving a 4% EPS upgrade. Already factored into our forecasts, the Limitor acquisition completed on 11 February.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 438.9 37.0 28.4 28.4 23.9 N/A
2020A 466.4 50.9 34.6 31.8 21.4 N/A
2021E 448.6 46.4 29.4 23.9 28.5 N/A
2022E 486.5 49.8 32.4 26.4 25.8 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 04/03/2021
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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 0.6 11.5 25.9
Relative* (1.7) 8.8 26.0
52-week high/low 748.0p/378.0p
*% relative to local index
Key management
Nick Jefferies CEO
Simon Gibbins FD
Greg Davidson Company secretary
Malcolm Diamond Non-executive chairman

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