discoverIE Group PLC on Tuesday reported half-year profit growth despite a dip in revenue and lifted its dividend.

Shares in discoverIE grew 6.0% to 640.00 pence each in London on Tuesday morning.

In the half-year ended September 30, the Guildford, Surrey-based customised electronics manufacturer and designer said pretax profit grew 8.1% to £16.0 million from £14.8 million the year before.

Revenue fell slightly to £222.0 million from £222.6 million a year prior. discoverIE attributed this to a one-off increase in semiconductor costs of £2.9 million, which reduced overall sales growth by 1%.

discoverIE upped its interim dividend by 5.6% to 3.75 pence per share from 3.55p in the first half of financial 2023.

Looking ahead, discoverIE expects to deliver full-year underlying earnings in line with its forecasts.

Chief Executive Nick Jeffries said: ‘discoverIE performed well in the first half. Our operational focus and sustained strong sales levels, which follows two years of growth at over 20% per year, delivered significant efficiencies with underlying operating profit increasing by 17% at constant exchange rates. We are making excellent progress towards our margin targets with a 1.4 [percentage points] increase in underlying operating margin, reflecting the leverage in our technology clusters, that is enabling efficiencies and creating value from acquisitions.

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