Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

DiscoverIE holds FY guidance as orders grow

(Sharecast News) - Customised electronics maker discoverIE Group held full-year guidance despite a fall in sales for the four months to January 31, as orders showed signs of improvement. Group sales in the period were 4% lower on a constant currency basis after two years of strong growth when sales rose by around 50%.

Revenue growth of 3% from acquisitions partly offset a 7% reduction in organic sales as customers processed inventory reductions, as expected. Sales at the start of the final fiscal quarter had returned to organic growth, with margins continuing to be "robust" the company said in a trading statement.

"The group continues to make good financial and strategic progress and is on track to deliver full year underlying earnings in-line with the board's expectations," it said.

"Orders in the period grew by 3% organically year-on-year with a similar sequential growth and were in line with sales. This is the first growth in orders since the quarter ending September 2022."

Year-to-date (YTD) group sales were up 1%, made up of 3% from acquisitions offset by organic sales falling 2%.

"With strong gross margins and tight control of operating expenses, the group continues to perform well through the cycle with YTD underlying profit higher than last year organically and augmented by the contribution from acquisitions," discoverIE added.

Reporting by Frank Prenesti for Sharecast.com

Share this article

Related Sharecast Articles

Billionaire Issa nearing deal to sell Asda stake to TDR Capital - report
(Sharecast News) - US private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
Billionaire Issa nearing deal to sell Asda stake to TDR Capital
(Sharecast News) - Private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
DS Smith tumbles as Mondi abandons pursuit
(Sharecast News) - DS Smith tanked on Friday after Mondi said it would not be making an offer for the rival packaging group, clearing the path for a takeover by International Paper.
Eqtec agrees amendment to Verde subscription
(Sharecast News) - Waste-to-energy technology developer Eqtec updated the market on the Verde Corporation subscription on Friday, confirming that an amendment to the subscription letter had been agreed upon with Verde.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.