discoverIE Group (LSE: DSCV)

Currency in GBP

Last close As at 25/01/2023

GBP8.27

35.00 (4.42%)

Market capitalisation

GBP763m

discoverIE is a leading international designer and manufacturer of customised electronics to industry, supplying customer-specific electronic products and solutions to original equipment manufacturers.

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 & connectivity – all of which are long-term structural growth markets.

discoverIE-Group_resized

Sector

TMT

Equity Analyst

Key Management

  • Bruce Thompson

    Non-exec chairman

  • Greg Davidson

    Company secretary

  • Lili Huang

    Head of Investor Relations

  • Nick Jefferies

    CEO

  • Simon Gibbins

    FD

Balance Sheet

Forecast net debt (£m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 10.3 7.4 (1.2)
Relative 6.2 (2.8) (3.6)
52 week high/low 914.0p/597.0p

Financials

discoverIE’s Q323 trading update confirmed continued good momentum, with FY23 underlying earnings tracking ahead of board expectations. The company has completed the previously announced acquisition of Magnasphere, adding a high margin sensor business to the Sensing & Connectivity division. We have upgraded our forecasts to reflect better trading and the accretive acquisition and note that gearing remains below the company’s target range, providing headroom for further M&A.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 302.8 44.0 28.3 23.4 35.3 12.9
2022A 379.2 56.1 41.0 32.1 25.8 18.1
2023E 432.0 63.3 45.4 34.1 24.3 17.9
2024E 445.3 67.2 46.9 35.3 23.4 13.3

Thematics

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

TMT

Direct tech investors

Consumer

Circular economy business models

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