discoverIE Group

LN: DSCV

£339.6m market cap

421p 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 acquired two high-margin design & manufacturing (D&M) businesses for initial consideration of £15.9m, and raised £28m net from the issue of 7.3m shares at 400p per share. The acquired businesses strengthen discoverIE’s position in the magnetics and sensor markets, increase presence in North America and open up organic growth opportunities in the group’s target markets. The placing brings the group’s gearing down and provides headroom for further acquisitions.

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 21.2 13.4
2018A 387.9 29.3 22.6 23.0 18.3 13.7
2019E 438.5 35.8 27.0 26.9 15.7 11.0
2020E 465.4 39.7 30.6 27.6 15.3 12.3
Last updated on 25/04/2019
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 25/04/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 5.0 3.2 2.7
Relative* 1.0 (5.0) 2.3
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

Content on discoverIE Group