Sparks commentary - discoverIE Group

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Sparks - discoverIE Group

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discoverIE (LSE:DSCV) delivers in line H125 results
Published by Katherine Thompson

Despite a 4% y-o-y decline in revenue at constant exchange rates (CER) in H125, the company generated a 4% CER increase in underlying operating profit and achieved an underlying operating margin of 13.8%, ahead of its FY25 target of 13.5% and well on the way to the FY28 target of 15.0%. Orders increased 5% h-o-h with the book-to-bill at 0.98x for H1. Trading in Q3 to date is in line with management expectations, ahead of Q2 and with orders ahead of sales. Management believes the company is on track to deliver underlying earnings in line with board expectations for FY25. An interim dividend of 3.9p (+4% y-o-y) was announced, and the company closed H125 with net debt/EBITDA of 1.45x, just below its target range of 1.5-2.0x.

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