discoverIE Group (LSE: DSCV)

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.

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Sector

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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 (9.4) 3.5 (3.7)
Relative (5.2) 3.2 (1.6)
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. 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

Research

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Acal — Update 26 January 2017

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Acal — Update 18 October 2016

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Acal — Update 27 July 2016

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Acal — Update 10 June 2016

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Acal — Update 18 April 2016

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Acal — Update 16 February 2016

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Acal — Update 8 December 2015

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Executive Interview – Acal

Consumer

Circular economy business models

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Micro-LEDs – small is beautiful

Consumer

Illuminator: August Update

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European video games

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Mobile ecosystems

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Mobile ecosystems

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Mobile ecosystems

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NZ – Edison talks tech

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AUS – Edison talks tech

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Mobile ecosystems

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Mobile ecosystems

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The third pillar

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The real disruptor

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Merger mania is back