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)
89
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 7.2 | 1.3 | (11.4) |
Relative | 7.5 | (0.9) | (17.1) |
52 week high/low | 814.0p/593.0p |
discoverIE’s Q125 trading update confirmed that underlying earnings expectations for FY25 are unchanged. While the Q125 revenue decline reflects the lower bookings environment in previous quarters, book-to-bill was above one and bookings increased organically year-on-year despite ongoing destocking by customers in the industrial market. Robust gross margins and a well-controlled cost base support the company’s 13.5% target operating margin for FY25 and we maintain our forecasts.
Y/E Mar | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2023A | 448.9 | 65.4 | 48.8 | 36.7 | 19.9 | 13.3 |
2024A | 437.0 | 71.1 | 50.5 | 38.5 | 18.9 | 10.6 |
2025E | 453.1 | 75.1 | 52.3 | 39.1 | 18.6 | 11.3 |
2026E | 466.7 | 77.6 | 54.8 | 40.8 | 17.9 | 10.0 |