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Solid third quarter trading at discoverIE Group
Designer, manufacturer and supplier of customised electronics discoverIE Group updated the market on its third quarter trading to 31 December on Wednesday, reporting that trading continued "strongly" with the group remaining on track to deliver its full year performance in line with management's expectations.
The London-listed group sales for the third quarter increased by 13% on a reported basis, by 12% at constant exchange rates and by 7% organically, primarily driven by organic growth of 11% in design and manufacturing.
In its custom supply operation, sales grew by 1%, reflecting widespread growth in continental Europe, offset by softness in UK domestic demand.
Cross-selling initiatives for the third quarter generated sales of £2.3m, nearly double the level of the prior year.
Group orders for the third quarter remained strong, growing by 4% organically with a book-to-bill ratio of 1.09, again driven by design and manufacturing organic growth of 10%.
As expected, group gross margin for the third quarter improved over the first half, by some 0.5ppts.
"In line with its strategy to grow its higher margin design and manufacturing division, the group has several acquisition opportunities in the pipeline and has debt funding resources available," discoverIE Group's board said in its statement.