discoverIE Group PLC on Friday said it has started its new financial year in line with expectations.

The Guildford, Surrey-based customised electronics manufacturer and designer said its performance in the first three months of the financial year ending March 31 has been in line with guidance, with its underlying earnings expectations for this year unchanged.

As expected, the company said sales for the period were 6% lower than last year at constant exchange rates. Organically, sales were 12% lower ‘against a strong comparator as industrial customer destocking continued, partly offset by the group’s other target markets and a +6% net contribution from acquisitions.’

It added that gross margins ‘continued to be robust and operating costs and working capital tightly managed’, with the company on target to achieve its 13.5% underlying operating margin target this financial year and 15% over the medium term.

‘With an excellent pipeline of design wins, acquisition opportunities and high cashflow, the group is well positioned to continue its strong through cycle growth as market conditions stabilise,’ discoverIE said.

Shares in discoverIE were down 0.7% to 724.00 pence each in London on Friday morning.

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