Sparks - discoverIE Group

discoverIE provided an H127 trading update (six months to 30 September) that confirmed continued strong momentum in revenue and order intake. Group reported revenue grew 14% y-o-y (13% at constant exchange rates (CER)) , with organic growth of 8% (Q1 +6%, Q2 +10%). Magnetics & Controls organic revenue growth was 13%, with strong demand in industrial electrification, renewable energy and security sectors. Sensing & Connectivity organic revenue growth was 1% , but reflecting a strong comparator, was up 5% h-o-h. The division is seeing longer lead times for certain components but the strong order book supports an acceleration in divisional revenues in H227.

Group order intake was 22% higher organically y-o-y and 30% higher CER, with a book-to-bill of 1.12. The acquired businesses are performing well and the regulatory process for the approval of the 3Gmetalworx acquisition is well progressed. Gearing is expected to be 1.6x at the end of H127, and once the planned acquisition of 3Gmetalworx completes, gearing at the end of FY27 is expected to be c 1.8x. The company sees adjusted earnings for FY27 running ahead of the board’s expectations which should drive strong earnings growth y-o-y.