discoverIE Group PLC overcomes forex headwinds to trade ahead of expectations

discoverIE Group PLC said performance in the first half of its fiscal year had been ahead of expectations despite strong foreign exchange headwinds.

The designer, manufacturer and supplier of customised electronics to industry said the strong order growth previously reported had continued into the second quarter of 2021 with revenue in the first half of the year well ahead of the same period of last year, which was affected by the coronavirus pandemic, and the year before, which wasn’t.

Group sales in the six-month period were up 23% year-on-year on a constant exchange rates (CER) basis. On a like-for-like (LFL) CER basis, sales were up 15% on the first half of last year and 8% ahead of the same period of 2019.

Orders were up 64% on a LFL basis on last year and 34% higher than in 2019. Growth was similar in both of the group’s divisions and resulted in a record order book at the end of the period, being 71% higher organically than last year and 53% higher organically than two years ago.

Gross margins have remained firm, discoverIE added.

In reference to the well-publicised supply chain constraints being experienced by numerous sectors of industry, the group said it is managing the problems effectively, although it conceded supply issues had somewhat constrained growth.

Following recent acquisitions, the group’s proforma gearing has reduced to 1.4 times underlying annual earnings from 1.6 at the end of March. This is below the group’s target gearing range of 1.5 to 2.0, leaving headroom for further acquisitions.