Electronics engineer DiscoverIE (DSCV) raised guidance after unveiling robust trading in the second half so far. The company, which designs and manufactures bespoke kit for highly regulated industries including healthcare, renewables, transport and aerospace, said orders in the four months to January 31 showed organic growth of 18% year-on-year and were up 30% on two years ago.
The order book at the end of January stood at a record £216 million.
That saw DiscoverIE management confidently predict forecast-beat underlying earnings this year to 31 March 2022, ‘despite ongoing supply chain headwinds,’ the company said in a statement.
BETTING ON A BRIGHT FUTURE
Investors took the hint, with the stock rising more than 3% in early Wednesday trading to 868p, although still well below 2022 highs of £ 10.60. The shares remain more than 30% off 12-month peaks of £12.62. The stock has risen nearly 300% over the past five years.
DiscoverIE recently restructured its Design & Manufacturing arm into two operating divisions - Magnetics & Controls and Sensing & Connectivity. Both saw solid growth.
Analysts at FinnCap, Shore Capital and Peel Hunt nudged current year earnings estimates 4% higher, on average, with 2% increases pushed through on 2023 forecasts. It leaves consensus earnings estimates earnings in the 26p to 27p range this year, rising to 28.9p to 29.4p for 2023, implying mid-teens growth.
