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Currency in GBP
Last close As at 30/03/2023
GBP7.75
▲ 25.00 (3.33%)
Market capitalisation
GBP740m
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.
Director
Bruce Thompson
Non-exec chairman
Greg Davidson
Company secretary
Lili Huang
Head of Investor Relations
Nick Jefferies
CEO
Simon Gibbins
FD
Forecast net debt (£m)
N/A
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (9.4) | 3.5 | (3.7) |
| Relative | (5.2) | 3.2 | (1.6) |
| 52 week high/low | 914.0p/597.0p |
discoverIE’s Q323 trading update confirmed continued good momentum, with FY23 underlying earnings tracking ahead of board expectations. Q323 revenue was 11% higher y-o-y (5% organic, 3% from FX and 3% from acquisitions) and for the nine months to 31 December 2022, revenue grew 21% y-o-y (11% organic, 3% FX, 7% from acquisitions). 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 | 33.1 | 12.1 |
| 2022A | 379.2 | 56.1 | 41.0 | 32.1 | 24.1 | 17.0 |
| 2023E | 432.0 | 63.3 | 45.4 | 34.1 | 22.7 | 16.8 |
| 2024E | 445.3 | 67.2 | 46.9 | 35.3 | 22.0 | 12.5 |
