discoverIE Group plc
LSE:DSCV
discoverIE Group plc
discoverIE Group Plc engages in the design, manufacture and distribution of electronic products and solutions. The company is headquartered in Guildford, Surrey and currently employs 4,500 full-time employees. The firm provides application-specific components to original equipment manufacturers (OEMs) internationally. The firm operates through Design & Manufacturing (D&M) division. The D&M division is divided into two operating segments, Magnetics & Controls division (M&C) and the Sensing & Connectivity division (S&C). The Magnetics & Controls comprises the magnetic components businesses and the embedded computing and interface controls businesses. The company consists of eight businesses. The Sensing & Connectivity comprises a cluster of five component sensing businesses and seven component connectivity businesses. The firm focuses on markets, such as renewable energy, medical, transportation, and industrial and connectivity. Its operating units are located in Continental Europe, the United Kingdom, China, Sri Lanka, India and North America.
discoverIE Group Plc engages in the design, manufacture and distribution of electronic products and solutions. The company is headquartered in Guildford, Surrey and currently employs 4,500 full-time employees. The firm provides application-specific components to original equipment manufacturers (OEMs) internationally. The firm operates through Design & Manufacturing (D&M) division. The D&M division is divided into two operating segments, Magnetics & Controls division (M&C) and the Sensing & Connectivity division (S&C). The Magnetics & Controls comprises the magnetic components businesses and the embedded computing and interface controls businesses. The company consists of eight businesses. The Sensing & Connectivity comprises a cluster of five component sensing businesses and seven component connectivity businesses. The firm focuses on markets, such as renewable energy, medical, transportation, and industrial and connectivity. Its operating units are located in Continental Europe, the United Kingdom, China, Sri Lanka, India and North America.
Record Organic Growth: discoverIE reported record organic growth in orders (up 64%), sales (up 15%), and order book (up 71%) compared to last year, driving strong earnings.
Margin Expansion: Underlying operating margin for the continuing business reached double digits for the first time at 10.3%, and the company raised its medium-term margin target to 13.5%.
Strategic Shift: Completion of the Custom Supply exit means discoverIE is now fully focused on higher-margin Design & Manufacturing, which is expected to further boost margins and growth.
Cash Generation & Acquisitions: Strong cash flow reduced gearing below 1 for the first time in 8 years, providing significant firepower for further acquisitions; three new acquisitions were made in the period.
Upgraded Outlook: H2 has started well, and guidance was raised, with a circa 4% upgrade to consensus numbers following strong performance and a record order book.
Resilience & Pricing Power: Despite widespread cost pressures (raw materials, freight, labor), discoverIE has maintained margins through effective pass-through pricing and remains confident in mitigating future inflation.
