discoverIE is a leading international designer and manufacturer of customised electronics to industry, supplying customer-specific electronic products and solutions to OEMs.
discoverIE specialises in the design and manufacture of technically demanding, bespoke electronics for industrial applications with operations throughout Europe and increasingly outside Europe. The company is focused on four target markets comprising three-quarters of group sales – renewables, electrification of transportation, medical and industrial and connectivity – all of which are long-term structural growth markets.
Bruce Thompson
Non-exec chairman
Greg Davidson
Company secretary
Lili Huang
Head of Investor Relations
Nick Jefferies
CEO
Simon Gibbins
FD
Forecast net cash (£m)
104.1
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (5.3) | (8.6) | (15.2) |
Relative | (7.0) | (13.9) | (17.7) |
52 week high/low | 938.0p/593.0p |
discoverIE anticipates reporting FY24 underlying EPS in line with board expectations. After a period in mid-FY24 of working down inventory, customers appear to be reverting to normal ordering patterns, with Q424 organic revenue growth of 2% y-o-y and 11% q-o-q and a strong pipeline of design wins at year-end. We have revised our forecasts to reflect lower revenue, partly due to a disposal, but maintain our profit forecasts, which results in operating margin expansion in FY24 and FY25.
Y/E Mar | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 379.2 | 56.1 | 41.0 | 32.1 | 22.3 | 15.7 |
2023A | 448.9 | 65.4 | 48.8 | 36.7 | 19.5 | 13.1 |
2024E | 435.2 | 71.8 | 49.6 | 37.4 | 19.2 | 12.3 |
2025E | 453.1 | 76.6 | 52.3 | 38.9 | 18.4 | 10.0 |