discoverIE says full-year trading is expected at upper end of expectations

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discoverIE Group Plc (LON:DSCV) told investors that trading continued to strengthen in the four months ended January 31 2020.

The electric components company, in a statement, highlighted that its trading performance for the twelve months to March 31 is expected to land at the upper end of market expectations.

Order intake is described as strong, up 10% organically over the pre-pandemic levels. It also marks a significant improvement compared to the first half of the financial year.

READ: DiscoverIE tipped for upside

The order book comprised £162mln of work, up 2% compared with this time last year and, sequentially, it has increased some 14% organically since the end of the first half, the company said.

Average monthly sales were up 4%, the company highlighted, and significantly sales in its target markets – which account for 69% of all sales – are described as “well ahead” of expectations.

discoverIE said it remains well funded with good liquidity. Cashflow was described as strong, whilst gearing reduced to 1.1x.

“The recovery through the second half to date and the strong order momentum provides a solid base from which to return to group-wide organic sales growth and underpins the expected progress into the next financial year,” the company said.

“With a clear strategy focused on long-term high-quality growth markets, a strong funnel of design wins and acquisition targets, the group is well positioned to make further progress.”

In London, discoverIE shares advanced 52p or 7.32% to trade at 762p each.

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