Proactiveinvestors RSS feed en Tue, 16 Oct 2018 20:59:39 +1100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[RNS press release - Trading Update ]]> Thu, 11 Oct 2018 17:00:04 +1100 <![CDATA[RNS press release - Issue of Equity ]]> Tue, 11 Sep 2018 00:17:04 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 22 Aug 2018 20:30:21 +1000 <![CDATA[RNS press release - Result of General Meeting ]]> Thu, 26 Jul 2018 23:45:08 +1000 <![CDATA[RNS press release - Result of AGM ]]> Thu, 26 Jul 2018 23:40:51 +1000 <![CDATA[RNS press release - Trading Update ]]> Thu, 26 Jul 2018 16:00:04 +1000 <![CDATA[News - discoverIE makes a strong start to the financial year ]]> discoverIE Group PLC (LON:DSCV), maker and supplier of customised electronics, said it was on course to deliver earnings in line with expectations following a strong start to the financial year.

Sales rose 12% at constant exchange rates and 3% organically, while orders increased 16% at constant currencies, or 7% organically.

The order book currently stands at a record £135mln, of which 80% is due to be shipped in the next 12 months.

Gross profit margins were also up, reflecting discoverIE’s focus on products with higher added value.

Tough year-earlier comparisons

The solid performance was achieved against some tough year-earlier comparisons.

“The positive trading momentum seen last year continued into the first quarter, with the group on track to deliver earnings in line with our expectations,” said discoverIE.

WATCH: The company's latest video 

New project design wins, a key driver of organic growth, grew strongly, while the design and manufacturing division, which generates around 75% of group profits, saw “broad-based organic growth”, investors were told.

Santon, acquired in February, has won a number of new projects in its industrial and transportation business for delivery this year.

Sales in the solar business slowed following a reduction of Chinese feed-in tariffs, though this was anticipated.

Broker upbeat

The shares, up just under £1 in the last year, were trading sideways at £4.24. Broker Peel Hunt reckons the stock is worth £5 and rates it ‘buy’.

It expects 2019 sales to be £428.1mln, up from £387.9mln, while adjusted pre-tax profit is expected to be £25.7mln, 17% ahead of the year-earlier number.

“The outlook is solid, with management confident of further progress,” said Peel Hunt analyst Henry Carver in a note to analysts.

“This is underpinned by the strength of the orderbook – not just the percentage increase, but the concentration of high quality design wins in the key target markets. Our forecasts, which are in line with consensus, remain unchanged.”



Thu, 26 Jul 2018 07:47:00 +1000
<![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 11 Jul 2018 23:17:50 +1000 <![CDATA[RNS press release - Publication of Circular and Notice of EGM ]]> Tue, 10 Jul 2018 16:00:05 +1000 <![CDATA[RNS press release - Annual Report and Accounts ]]> Wed, 27 Jun 2018 01:46:31 +1000 <![CDATA[RNS press release - Issue of Equity ]]> Wed, 20 Jun 2018 00:03:38 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 11 Jun 2018 19:56:33 +1000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 08 Jun 2018 01:08:38 +1000 <![CDATA[RNS press release - Exercise of share options ]]> Wed, 06 Jun 2018 18:00:05 +1000 <![CDATA[RNS press release - Final Results ]]> Tue, 05 Jun 2018 16:00:03 +1000 <![CDATA[Media files - discoverIE enjoys year of 'good progress' with strong organic growth ]]> Tue, 05 Jun 2018 09:20:00 +1000 <![CDATA[News - discoverIE reports huge leap in profits as efficiency plans bear fruit ]]> discoverIE Group plc (LON:DSCV) saw profits more than treble last year as the customised electronics supplier and manufacturer reaped the rewards of its efficiency and cost reduction programme.

The London-listed firm implemented its efficiency plan in the 16/17 financial year which saw it shut its unprofitable Spanish business, trim management numbers and make a series of improvements to its infrastructure and manufacturing processes.

WATCH: discoverIE enjoys year of 'good progress' with strong organic growth

Despite the changes, discoverIE’s management hasn’t lost sight of sales, with revenues climbing 15% in the year ended  31 March 2018 to £387.9mln (2017: £338.2mln).

Much of that growth came from the design and manufacturing business which now accounts for more than three-quarters of the group’s total profits.

Costs as a percentage of sales fell in the year to 27.9% (2017: 30.5%). Coupled with the higher revenues, this allowed profits to soar 229% to £15.8mln (2017: £4.8mln). On an underlying basis, pre-tax profits climbed 27% to £21.9mln (2017: £17.2mln).

As a result of the strong performance, discoverIE – formerly known as Acal – increased its full-year dividend by 6% to 9.0p (2017: 8.5p).

Record year-end order book

“As expected, this has been a year of good progress,” said chief executive Nick Jefferies.

“The Design & Manufacturing division has delivered strong organic growth in revenue and profits and in Custom Supply, the efficiency programme of last year has delivered much improved profitability.”

He added: “The group order book grew by 12% to reach a new record level of £122mln and the value of new projects won during the year continued to grow well.”

Looking ahead, Jefferies said that trading in the opening couple of months of the new year has started well with continuing growth in orders and sales.

Tue, 05 Jun 2018 07:44:00 +1000
<![CDATA[RNS press release - Trading Update ]]> Thu, 19 Apr 2018 16:00:02 +1000 <![CDATA[News - DiscoverIE continues strong momentum into 2018 ]]> Customised-electronics supplier discoverIE Group PLC (LON:DSCV) has continued the strong momentum of last year into 2018.

In its first trading update since the end of January, the company said it had continued to trade well with earnings in respect of the year to the end of March 2018 expected to be in line with management's expectations, showing strong year-on-year growth in profitability.

READ DiscoverIE Group posts another quarter of strong organic growth​

Group sales for the year increased by 15% on a reported basis, by 11% on a constant exchange rates (CER) basis and by 6% organically.

Cross-selling initiatives for the year were strong, generating sales of £9mlm, almost double the level of the prior year.

Group orders for the full year grew by 5% organically, leaving the order book on 31 March 2018 at a record financial year-end level of £122mln, up 12% year-on-year on a CER basis.

The Design & Manufacturing (D&M) division saw full-year sales grow 11% organically – up from a 10% growth rate in the first nine months of the financial year.

The D&M order book grew by 12% organically from the previous year.

In the Custom Supply division, revenue for the year was flat organically, principally reflecting a very strong prior year final quarter with the business now being more efficient and delivering greater profitability, the company said, adding that strong growth in Germany and Italy was offset by softness in domestic UK demand.

Across the group, the gross margin was higher in the second half of the financial year than in the first.

READ discoverIE buys Dutch solar power components specialist​

Santon Group, acquired on 1 February 2018, is settling in well, discoverIE said. In addition to its strong solar business, a number of new opportunities have arisen in the transportation and industrial sectors, some with customers that are common to the group.


Thu, 19 Apr 2018 07:48:00 +1000
<![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 30 Mar 2018 00:15:23 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 28 Mar 2018 00:41:18 +1100 <![CDATA[News - City brokers repeat bullish views on discoverIE Group following recent Capital Markets Day ]]> Two city brokers reiterated their bullish views on discoverIE Group PLC (LON:DSCV) following the customised electronics supplier’s recent Capital Markets Day.

Numis Securities reiterated an ‘add’ rating and 455p price target and its analysts said the event “left us feeling confident about the Group's runway for further growth”.

READ: Numis ups target price for discoverIE after raising estimates following recent Dutch acquisition

In a note to clients, they added: “The key focus of the event was on giving a greater understanding of the product range, particularly within Design & Manufacturing (D&M).”

The analysts said the firm – formerly known as Acal PLC -  also provided some further detail on M&A plans, noting that discoverIE’s management reiterated their target for a 15% pre-tax return on investments (ROI) from acquisitions within two years.

They concluded: “Despite the re-rating over the last year, we believe that a favourable market backdrop, combined with the potential for further value-enhancing M&A, means that there is further for the stock to run.”

Peel Hunt repeats ‘buy’ and 470p target

Meanwhile, analysts at Peel Hunt also commented on discoverIE’s Capital Markets Day pointing out that the event “was very well attended and gave a clear account of the business, the long-term strategy, successful execution so far and the huge scope for further growth.”

The Peel Hunt analysts said: “With no new financial or trading information we leave our numbers unchanged, but reiterate our 470p target price and Buy recommendation.”

In late afternoon trading on Monday, discover IE’s shares were changing hands at 406p, down 1.5% on Friday’s closing price.

Mon, 19 Mar 2018 15:52:00 +1100
<![CDATA[RNS press release - Notice of Capital Markets Day ]]> Thu, 15 Mar 2018 18:00:02 +1100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 05 Mar 2018 21:26:31 +1100 <![CDATA[RNS press release - Issue of Equity ]]> Wed, 21 Feb 2018 20:15:50 +1100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 09 Feb 2018 23:11:44 +1100 <![CDATA[RNS press release - Total Voting Rights ]]> Sat, 03 Feb 2018 01:48:58 +1100 <![CDATA[News - Numis ups target price for DiscoverIE after raising estimates following recent Dutch acquisition ]]> Numis Securities has upped its target price for DiscoverIE Group PLC (LON:DSCV) after raising estimates following the recent news of the £23.7mln acquisition of Santon, a designer and manufacturer of patented direct current switches.

In a note to clients, Numis’s analysts said: “We view this as an attractive acquisition, significantly enhancing the Group's exposure to the structurally growing renewables (particularly solar) market, as well as boosting geographic diversification (particularly Asia).”

READ: discoverIE buys Dutch solar power components specialist

The City broker’s analysts upgraded their full-year 2019-2020 earnings per share forecasts for the customised electronics supplier – formerly known as Acal PLC - by 7-8%, leading them to increase their share price target to 455p.

With the shares currently trading at 395p each, the Numis analysts reiterated an ‘add’ recommendation on DiscoverIE.

They concluded: “The shares now trade on a FY19E PE of 14.8x and EV/EBITA of 10.9x, which we view as undemanding given the cyclical and structural tailwinds to which DiscoverIE is exposed.”

Fri, 02 Feb 2018 11:13:00 +1100
<![CDATA[RNS press release - Acquisition ]]> Thu, 01 Feb 2018 18:00:11 +1100 <![CDATA[News - discoverIE buys Dutch solar power components specialist ]]> Customised electronics supplier discoverIE Group PLC (LON:DSCV) has acquired Santon Group, a Dutch designer and manufacturer of custom switches for electronic applications.

The company has been acquired for an initial consideration of €27.0mln (£23.7mln) on a debt-free and cash-free basis.

READ: DiscoverIE Group posts another quarter of strong organic growth

All but €1mln of the initial consideration will be paid in cash; the remainder will be satisfied through the issue to the seller of discoverIE shares.

In addition, contingent consideration of up to €22.5mln (£19.9mln) will be payable over the next three years subject to Santon achieving certain growth targets.

DiscoverIE will reimburse the seller €2.5mln (£2.2mln) for recent capital expenditure on the automation of Santon’s production facilities, and will also invest a further €2.5mln (£2.2mln) over the coming year to provide capacity for further growth.

The acquisition is expected to enhance discoverIE’s underlying earnings in the financial year starting April 1.

READ: DiscoverIE's price target raised to 450p

In 2016, Santon reported underlying earnings (EBITDA) of €2.8mln (£2.3mln) on revenue of €24.4mln (£20mln).

Santon’s gross assets at the end of 2016 stood at €15.0mln (£12.8mln) on a reported basis. The business continued to grow through 2017 and is expected to benefit from access to discoverIE’s wider international customer base.

“With a long-established track record of producing high-quality DC switches, Santon builds our position in niche components for solar power, a market that is set to grow significantly, and will create new opportunities in our other target markets such as transportation and medical,” said Nick Jefferies, the group chief executive of discoverIE.

Thu, 01 Feb 2018 07:34:00 +1100
<![CDATA[RNS press release - Trading Update ]]> Wed, 31 Jan 2018 18:00:03 +1100 <![CDATA[News - DiscoverIE Group posts another quarter of strong organic growth ]]> Customised electronics supplier discoverIE Group PLC (LON:DSCV) said it continued to trade strongly in its fiscal third quarter.

The group, formerly known as Acal, said it remains on track to deliver a full-year performance in line with management's expectations after a good showing in the final quarter of 2017.

READ: DiscoverIE's price target raised to 450p

Group sales in the quarter were up 13% year-on-year, or 12% on a constant exchange rates (CER) basis, with like-for-like sales up 7%, driven primarily by organic growth of 11% in Design and Manufacturing.

In the Custom Supply division, sales growth was subdued; sales rose 1%, with widespread growth in continental Europe offset by soft demand in the UK.

Cross-selling initiatives for the fiscal third quarter generated sales of £2.3mln, which was nearly double the level of the prior year.

READ: DiscoverIE's price target lifted by finnCap on back of sector-beating growth rate

Group orders remained strong, growing by 4% organically with a book-to-bill ratio of 1.09, driven by Design & Manufacturing organic growth of 10%.

The group's gross margin improved in the fiscal third quarter by around half a percentage point from the first half, as anticipated by management.

Shares in DiscoverIE were up 0.9% at 385.48p in the first hour of trading.

Wed, 31 Jan 2018 08:49:00 +1100
<![CDATA[RNS press release - Directorate Change ]]> Tue, 23 Jan 2018 18:00:05 +1100 <![CDATA[News - DiscoverIE's price target raised to 450p ]]> Peel Hunt has reiterated its ‘buy’ recommendation for DiscoverIE Group PLC (LON:DSCV), the company formerly known as Acal.

The interim results in November sent the shares on a good run and they currently trade at 377.5p, above Peel Hunt’s price target of 360p.

READ: Acal building momentum with its higher margin strategy

Rather than switch to a ‘hold’ recommendation, the broker has increased its price target to 450p, reflecting the fact that with the arrival of a new year it has rolled its forecasts forward a year for valuation purposes.

The broker says it now views the future of DiscoveIE with increased confidence, both in terms of organic growth and the group’s buy-and-build strategy.

Thu, 04 Jan 2018 10:59:00 +1100
<![CDATA[News - discoverIE shares strong performers over the last year, but still plenty to go for, says respected German bank ]]> Up 60% in the year to date and 140% over the past 12 months, it would be easy to assume shares in the electronics component business discoverIE Group PLC (LON:DSCV) are up with events.

But, according to analysts at Berenberg, there is still plenty left on the table for investors new to the story.

WATCH: DiscoverIE is the new Acal

Why? Well, the number crunchers at the German investment bank believe the shares, currently changing hands for 355p, are worth 460p.

Initiated with a 'buy' rating 

Berenberg provided the valuation as it initiated coverage of the stock with a ‘buy’ rating.

It pointed out the company, formerly known as Acal, has ‘transitioned’ in recent years from commoditised parts to a design-led approach, which has boosted the business’ profitability.

Since 2011, EBIT margins have doubled to 6.2% and are on course to hit 7.5% by 2020 and 8.5% “thereafter”.

However, Berenberg says there may be a way of accelerating growth via well-judged deals.

Fragmented market

It points out the £20bn market for customised electronic components is “extremely fragmented”, consisting of “many subscale designers that lack the distribution channels to unlock their full value”.

In fact discoverIE has tapped into these sorts of opportunities already, making 13 acquisitions worth around £150mln in the last eight years.

“It buys growing businesses, allowing them to operate in a decentralised structure,” said Berenberg in its note to clients.

“Meanwhile, it generates revenue synergies by offering them access to its distribution network of 25,000 customers.”

M&A scenario

Berenberg’s M&A scenario assumes the company has access to £200mln of debt that can be deployed over the next five years, which it reckons could yield an equity value of up to £530mln.

It also believes the discoverIE’s underlying markets have a number of long-term growth drivers, including increasing electronic content in products; shorter product life-cycles; and increasing industrial connectivity.

“In the near term, a buoyant Eurozone backdrop, coupled with revenue synergies from new acquisitions should drive growth ahead of the broader market,” it added.

 -- Updates share price --

Tue, 12 Dec 2017 09:36:00 +1100
<![CDATA[RNS press release - Change of Name ]]> Wed, 29 Nov 2017 19:01:01 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 28 Nov 2017 20:06:29 +1100 <![CDATA[RNS press release - Change of Name ]]> Tue, 28 Nov 2017 18:01:01 +1100 <![CDATA[RNS press release - Half-year Report ]]> Tue, 28 Nov 2017 18:00:03 +1100 <![CDATA[Media files - DiscoverIE is the new Acal ]]> Tue, 28 Nov 2017 09:36:00 +1100 <![CDATA[News - DiscoverIE's price target lifted by finnCap on back of sector-beating growth rate ]]> Acal Plc (LON:ACL), now known as DiscoverIE, ended its financial half-year with a record order book.

The second half of the financial year to end-March has started well and the group is on track to deliver full-year performance in line with management’s expectations.

READ: Acal building momentum with its higher margin strategy

The supplier of customised electronics to industry posted a 42% increase in underlying profit before tax of £10.4mln in the six months to the end of September from £7.3mln the year before.

Revenue was up 21%, or 15% on a constant exchange rate basis, to £190.2mln from £156.7mln the previous year.

A strong inflow of orders meant that the value of the order book rose 16% year-on-year (on a constant exchange rates basis) to £111mln.

The underlying operating margin rose to 6.2% from 5.6% the year before, reflecting the group’s focus on higher margin products and customer solutions.

Underlying earnings per share rose 24% to 10.5p from 8.5p in the corresponding period of 2016, while the interim dividend has been hiked 8% to 2.65p from 2.45p.

The group said the recent acquisition of Variohm is performing well, with strong sales and order growth, while the group is working on further acquisition opportunities.

"This is a strong set of results,” declared Nick Jefferies, the group’s chief executive.

“Sales increased by 21%, of which 9% was widespread organic growth across the group, and underlying earnings per share increased by 24%,” Jefferies continued.

READ: Acal well placed to produce significant long-term growth

“Since 2011, we have been building a Design and Manufacturing business that would transform the group into a higher margin business. D&M now accounts for 78% of group underlying profit contribution and to reflect this and, more importantly, our further ambitions, we are announcing today that the company is changing its name to discoverIE Group PLC (LON:DSCV), recognising how we help our customers to 'discover innovative electronics',” Jefferies revealed.

The name change applies at the group level; at the operating level, the group's business names remain unchanged.

“We have many growth opportunities ahead of us as we drive towards our stated targets, and our ambition remains to repeat the performance of the last five years by doubling revenue and underlying earnings per share through a combination of organic growth and value-enhancing acquisitions," Jefferies said.

Broker Peel Hunt, which counts DiscoverIE as a corporate client, described the trading update as “excellent” and said there is plenty of momentum heading into the second half of the financial year.

“The group has also changed its name to discoverIE Group PLC, which we see as a natural, positive move that reflects the evolution of the business from distributor to designer and manufacturer,” Peel Hunt noted.

DiscoverIE stands for “Discover innovative electronics” and follows on from the recent FTSE reclassification of the stock to the Electronics and Electrical Equipment sector.

Adjusted profit before tax of £10.4mln was a shade above Peel Hunt’s forecast of £10.3mln.

The broker left its full-year forecasts unchanged, following upgrades in April and October, but said there is a chance that it would be revising them upwards again before the financial year is done.

“Net debt at 30 September was £37.6mln, down £3.5mln YoY [year-on-year], which equates to 1.3x pro forma EBITDA [underlying earnings] and leaves plenty of firepower for further bolt on acquisitions, the pipeline for which we understand is looking healthy. Absent any deals, we’re forecasting net debt to reduce to c£27mln by the end of the year,” Peel Hunt, as it reiterated its ‘buy’ recommendation.

“On a PER [price/earnings ratio] of 14.5x Mar18e [forecast earnings for year to March 2018] and a dividend yield of 2.8% we think the shares are significantly undervalued,” the broker said.

Shares in the company rose 2p to 320.25p on the results; Peel Hunt thinks they could hit 360p in the next 12 months.

The price target is even punchier at finnCap, which reckons the shares are worth 405p – up from its previous target price of 339p.

Even at that valuation, the stock trades on a 15% discount to its peers, despite the prospect of faster growth, finnCap noted.

The stock is currently trading at a 37% discount to its peers, but finnCap expects this discount to narrow.

“The outlook is positive, evidenced by a record order book (+16% at CER [constant exchange rates]), and investment has consequently been made into working capital. Of particular note is a 30% increase in new project design wins, providing an expanding base from which to drive continued growth,” finnCap’s Guy Hewlett said.

Tue, 28 Nov 2017 07:34:00 +1100
<![CDATA[RNS press release - Trading Update ]]> Mon, 16 Oct 2017 17:00:04 +1100 <![CDATA[News - Acal building momentum with its higher margin strategy ]]> Shares in Acal PLC (LON:ACL) rose sharply at the opening bell on Monday after the customised electronics specialist revealed it expects full-year earnings to be ahead of expectations after a strong first half performance.

The Guildford-headquartered group said it has generated “good levels of organic growth” in the opening six months of its year, driven by new project wins and “favourable” market conditions, particularly in continental Europe.

“As a result, full year earnings are now anticipated to be slightly ahead of our expectations,” read this morning’s statement.

The solid start is a continuation of the momentum Acal has been building in previous quarters.

READ: Acal’s full-year results slightly ahead of expectations

First-half total revenue jumped by 21% to £190mln for the six months ended 30 September compared with the same period last year (H1 16/17: £157mln).

Organic sales in the Design & Manufacturing business – which accounted for 57% of the total revenue during the period – grew by 11%, while the Custom Distribution division saw sales rise by 7%.

Group orders increased by 15% in the half, taking Acal’s forward order book to another record period end high.

The group margin stabilised and was in line with the final quarter of last year, the company added.

“The board is confident of making good progress through the rest of the year, continuing its established strategy of seeking high-quality revenue opportunities in our target markets, along with value-enhancing acquisitions.”

Earlier this year, Acal agreed to buy out UK-based components manufacturers Variohm Holdings Limited in a deal which could be worth up to £13.85mln.

Acal paid £12mln upfront, with a further £1.85mln payable should the new addition achieve certain growth targets and conditions.

It is all part of a strategy to grow its design and manufacturing division with differentiated niche and customised electronic components. 

It is clear that Acal expects acquisitions (M&A) will continue to augment organic growth as it recently created a new role of M&A director in March, to which it appointed Jeremy Morcom.

Broker Peel Hunt is a buyer of the stock

Peel Hunt reiterated its ‘buy’ recommendation after the October trading statement, saying the momentum that started to build back in the fourth quarter of fiscal 2017 has continued through the first half of fiscal 2018.

Organic revenue growth for the first half was 9%, which was thanks to a better trading backdrop, but Peel Hunt noted the group is also seeing an improvement in the quality of the order book.

“Given the positive underlying momentum in the business, we anticipate further positive news flow as the year progresses and still see upside risk to forecasts,” Peel Hunt said.

With net debt around 1.2 times underlying annual earnings (EBITDA), there is plenty of headroom for further bolt-on acquisitions.

“Management’s long-term strategy of transitioning to a higher growth, higher margin business both organically and through acquisition remains firmly on track, and we see plenty more to go for,” Peel Hunt said, as it stuck with its 360p target price.

As of 23 November, Acal’s shares were trading at 313p.

Mon, 16 Oct 2017 07:39:00 +1100
<![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 12 Oct 2017 03:25:25 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 20 Sep 2017 02:04:55 +1000 <![CDATA[RNS press release - Sector Reclassification ]]> Thu, 14 Sep 2017 16:00:02 +1000 <![CDATA[RNS press release - Notification of Change of Auditor ]]> Wed, 13 Sep 2017 19:36:12 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 17 Aug 2017 23:33:54 +1000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 15 Aug 2017 20:32:13 +1000 <![CDATA[RNS press release - EXERCISE OF SHARE OPTION ]]> Fri, 04 Aug 2017 19:00:01 +1000