14/07/2020

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DiscoverIE Group PLC order book remains strong in face of pandemic

The get e book stays powerful at £159mln, up 13% yr on yr, with the 3-thirty day period get e book in the core Layout & Manufacturing division at a stage steady with the prior yr

DiscoverIE Team PLC () claimed a powerful performance for its past financial yr even with the fourth quarter staying influenced by the coronavirus pandemic. 

Underlying revenue right before tax rose 21% to £32.8mln on revenue up eight% at frequent trade prices and 6% to £466.4mln on a claimed basis. 

“In reaction to the COVID-19 pandemic which became apparent in the closing quarter of the yr, we have taken swift motion to assure the harmless functioning of employees and trading partners even though maintaining operational continuity,” mentioned main government Nick Jefferies.

“We are supporting purchaser needs in the medical sector by swiftly building and giving goods for a vary of virus-connected medical products in around sixty diverse tasks.”

The electronics designer’s gearing at the yr-end reduced to one.25x with major headroom underneath existing services.

“The group has a powerful financial situation, a distinct technique and is accomplishing effectively,” mentioned Jefferies. “We have taken decisive measures to protect cash and minimize functioning expenditure even though maintaining our capacity to answer efficiently as situations boost.”

Searching to the new financial yr, 1st-quarter revenue are down 10% on an organic and natural basis, although the get e book stays powerful at £159mln, up 13% yr on yr, with the 3-thirty day period get e book in the core Layout & Manufacturing division at a stage steady with the prior yr.

“With a powerful funnel of layout wins and acquisition targets, the Team is effectively positioned for a return to powerful advancement as situations recover,” Jefferies mentioned.

The shares were up far more than 6% to 514p my late morning on Wednesday.

Broker FinnCap mentioned: “Coupled with powerful cash movement decreasing net financial debt/EBITDA to one.25x, the group is really effectively positioned to trade as a result of the present uncertainties and then resume its verified strategic advancement route. We make no variations to our forecasts.”