DiscoverIE reports robust first quarter of trading

Industrial electronics specialist DiscoverIE reported positive trading momentum in a first-quarter update on Monday, with organic sales growth at a comparable level to that seen in the final three months of last financial year.

The FTSE 250 company said earnings for the period aligned with its own expectations.

During the period, the group's sales were up 4% year-on-year, driven by 3% organic growth, while acquisitions contributed 2%.

However, foreign exchange fluctuations had a minor negative impact of 1% on sales growth.

Both divisions of the group experienced similar organic growth rates, DiscoverIE said.

In addition to robust sales growth, the group's gross margins remained resilient, surpassing last year's performance on an organic basis.

“As expected, the order book continued to normalise gradually through the period from the record level at 30 September as it converts into sales,” the company’s board said in its statement.

“The order book remains strong and provides good visibility of demand in the current year.

“With a clear strategy focused on long-term, high quality, structural and UN SDG-aligned growth markets across Europe, North America and Asia, a diversified customer base, a strong order book and pipeline of acquisition opportunities, the group is well positioned to make further progress.”

At 0820 BST, shares in DiscoverIE Group were down 1.77% at 822.19p.

Reporting by Josh White for Sharecast.com.