DiscoverIE FY earnings seen in line with internal expectations

(Sharecast News) - Electronic components manufacturer DiscoverIE said on Thursday that it remains on track to deliver full-year underlying earnings in line with internal expectations. DiscoverIE said group sales were flat year-on-year in the three months ended 31 December, with organic sales down 3% year-on-year. On a divisional level, S&C continued to lead the recovery cycle with a return to organic sales growth, while M&C remained negative.

Gross margins continued to be "robust", with operating costs and working capital tightly managed, while the firm's order book increased by 4% and its book-to-bill ratio increased to 1.01 from 0.98 in the first half. DiscoverIE also said cash generation continued to be "strong".

"With an excellent pipeline of organic and inorganic opportunities and strong cashflow, the group is well positioned to deliver sustained growth as markets recover," said DiscoverIE.

As of 0900 GMT, DiscoverIE shares were up 1.90% at 643.0p.











Reporting by Iain Gilbert at Sharecast.com