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Results & Reports

Simon Gibbins

"These results demonstrate the strength of the discoverIE business model with strong growth in sales, profits, operating margin and EPS, together with a record order book."

Simon Gibbins,
Group Finance Director

Half Year Results Highlights Half Year Results Performance Summary

Half Year Results Highlights

Sales growth with efficiencies driving strong financial performance

  • Group sales up 23% CER with a book-to-bill of 1.08
  • Group organic(3) sales up 14% with growth across both divisions (M&C: +17%; S&C: +11%)
  • Organic gross margins stable despite inflation headwinds
  • Underlying operating profit up 42%
  • Underlying EPS up 37%

Further progress made towards key targets

  • Underlying operating margin increased by 1.4ppts to 11.7%
  • Sales beyond Europe increased to 41% of total sales (FY 2021/22: 40%)
  • Sales into target markets(4) of 77% (FY 2021/22: 76%)
  • Free cash conversion(5) of 72% of underlying earnings reflecting strong sales growth
  • Carbon emissions reduced further, by c. 40% (like-for-like) since CY 2019(6)

New net zero commitment

  • Group announces SBTi aligned net zero carbon emissions commitment by 2030(7)

Group well positioned for further growth

  • Record order book of £257m (organic: +21% v Sep 2021)
  • Strong pipeline of acquisition opportunities in development
  • Period-end gearing(8) of 0.8x, well below our target of 1.5x to 2.0x; good funding headroom available
(3) Organic growth for the Group compared with last year is calculated at CER and is shown excluding the first 12 months of acquisitions post completion (CPI was acquired in May 2021, Antenova in August 2021, Beacon in September 2021 and CDT in June 2022).
(4) Target markets are renewable energy, medical, transportation, industrial & connectivity.
(5) Free cash flow is cash flow before dividends, acquisitions and equity fund raising.
(6) Original target was to reduce scope 1 & 2 carbon emissions in CY 2019 by 50% on a like-for-like basis by CY 2025. Target increased this Period to an absolute carbon emissions reduction of 65% since CY 2021.
(7) Net Zero carbon emissions by 2030 defined as Net Zero Scope 1 & 2 emissions as defined by SBTi along with a commitment to achieve net zero scope 3 emissions by 2040
(8) Gearing ratio is defined as net debt divided by underlying EBITDA (excluding IFRS 16; annualised for acquisitions).
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Half Year Results Performance Summary

H1 2022/23 H1 2021/22 Growth % CER(2) Growth %
Revenue £219.7m £174.3m +26% +23%
Underlying operating profit(1) £25.6m £18.0m +42% +37%
Underlying operating margin(1) 11.7% 10.3% +1.4ppts +1.2ppts
Underlying profit before tax(1) £23.5m £16.1m +46%
Underlying EPS(1) 17.8p 13.0p +37%
Reported profit before tax £14.8m £6.4m +131%
Reported fully diluted EPS 10.9p 6.6p +65%
Interim dividend per share 3.55p 3.35p +6%
(1) ‘Underlying Operating Profit', ‘Underlying Operating Margin”, ‘Underlying EBITDA’, 'Underlying Profit before Tax' and 'Underlying EPS' are non-IFRS financial measures used by the Directors to assess the underlying performance of the Group. These measures exclude acquisition-related costs (amortisation of acquired intangible assets of £7.8m and acquisition & disposal expenses of £0.9m) totalling £8.7m. Equivalent underlying adjustments within the H1 2021/22 underlying results totalled £9.7m. For further information, see notes 2 and 7 of the attached condensed consolidated interim financial statements.
(2) Growth rates at constant exchange rates (“CER”). The average Sterling rate of exchange strengthened 1% against the Euro compared with the average rate for the same period last year and strengthened 2% on average against the three Nordic currencies while weakening by 12% against the US Dollar.
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