DiscoverIE interim earnings in line with expectations

Electronic components manufacturer DiscoverIE said on Tuesday that first-half earnings were in line with internal expectations and noted that it "remains on-track" to meet guidance for the financial year.

DiscoverIE said its strategy and focus on operational improvements had enabled continued margin development and robust earnings performance through the economic cycle.

The FTSE 250-listed group stated that while de-stocking continued at some customers, it did so at a lesser rate. It also said order levels stabilised and design wins, a key forward-looking barometer, increased strongly.

Group sales were 4% lower year-on-year, with organic sales down 10% in the half. However, orders returned to growth in the half, up 8% year-on-year, and design wins increased 8%, with an estimated lifetime value of £205.0m.

"With an excellent pipeline of design wins and acquisition opportunities supported by high cashflow, the group is well positioned to build on its strong through-cycle growth record and deliver on its strategic objectives as market conditions stabilise," said DiscoverIE.

As of 0840 BST, DiscoverIE shares were up 5.33% at 632.50p.

Reporting by Iain Gilbert at Sharecast.com