News Details

Interim results for the six months ended 30 September 2025

Record profitability with growing orders and acquisition pipeline

discoverIE Group plc (LSE: DSCV, “discoverIE” or “the Group”), a leading international designer and manufacturer of customised electronics to industry, today announces its interim results for the six month period ended 30 September 2025 (“H1 2025/26” or “the Period”).

Highlights

• Revenues up 3.5% CER and orders up 5% CER
  • Organically⁽³⁾, sales grew 1% in Q2 and 0.5% in H1
  • Organically, orders grew 8% in Q2 and 0.5% in H1

• Adjusted operating profit up 5% CER to a record £30.2m
  • Adjusted operating margin of 14.0%, up 0.3ppt at CER
  • Adjusted EPS up 6% to 19.5p 

• Excellent cash flow with strong conversion rates over the last 12 months
  • Free cash conversion⁽⁴⁾ of 104%, well ahead of target
  • Cash conversion rates averaging above 100% over the last decade

• Accretive bolt-on acquisition signed after the Period end for £5.5m

• Revolving credit facility of £240m extended to May 2030
  • Period-end gearing⁽⁵⁾ of 1.3x

• Growth drivers remain strong with the Group well positioned
  • Order book provides good visibility for second half and beyond
  • Strong pipeline of design wins and new opportunities
  • Active pipeline of acquisition opportunities
  • Group will benefit from recovering cyclical demand and reducing interest rates

• On track to deliver full year adjusted earnings in line with the Board’s expectations

Nick Jefferies, Group Chief Executive, commented:

“discoverIE delivered a good first half performance with record profits, excellent cashflow and a return to organic sales and orders growth.

Trading momentum improved through the first half with second quarter orders increasing by 8% organically, sales increasing by 1% organically and orders being ahead of sales. Three of our four operating units (Sensing, Connectivity and Magnetics) have now returned to good levels of organic growth after a period of significant customer destocking. Controls, which comprises typically later-cycle businesses, is expected to follow.

We remain focused on generating good organic growth through the cycle, with a healthy pipeline of design wins. Additionally, we have numerous acquisition opportunities in development, including our most recent signed bolt-on transaction, Keymat.

The Group remains on track to deliver full year adjusted earnings in line with the Board’s expectations and looks forward to realising the exciting potential we see for the future.”

Analyst presentation:

An analyst presentation will be held today at 9.00am (UK time) at the offices of Peel Hunt. If you would like to join in person or via the live webinar, please contact Burson Buchanan at discoverIE@buchanan.uk.com.

Enquiries:

discoverIE Group plc IR@discoverIEplc.com

Nick Jefferies Group Chief Executive

Simon Gibbins Group Finance Director

Lili Huang Head of Investor Relations

Burson Buchanan 020 7466 5000

Chris Lane, Toto Berger

discoverIE@buchanan.uk.com

Notes:

(1) ‘Adjusted operating profit’, ‘Adjusted operating margin’, ‘Adjusted profit before tax’, ’Adjusted EPS’, ‘Adjusted operating cash flow’, ‘Free cash flow’ and ‘Adjusted EBITDA’ are non-IFRS financial measures used by the Directors to assess the performance of the Group. These measures exclude acquisition and disposal related costs (amortisation of acquired intangible assets of £8.2m less net acquisition and disposal credits of £0.3m) totalling £7.9m. Equivalent adjusting items within the H1 2024/25 adjusted results totalled £8.0m. ‘Adjusted EBITDA’ also excludes IFRS 16 leases adjustments, non-cash share-based payments cost and IAS19 pension costs in line with the Group’s banking covenants. For further information, see note 7 of the attached condensed consolidated interim financial statements.

(2) Growth rates at constant exchange rates (“CER”). In calculating CER for the Period, the average Sterling rate of exchange strengthened 5% against the US Dollar but weakened 1% against the Euro and weakened 2% on average against the three Nordic currencies resulting in a 1% sales reduction for the Period.

(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 (Hivolt was acquired in August 2024 and Burster in January 2025).

(4) Free cash flow is cash flow available for the payment of dividends and investment in acquisitions. Free cash conversion is free cash flow divided by adjusted profit after tax. See definitions in note 7 of the attached condensed consolidated interim financial statements.

(5) Gearing ratio is defined as net debt divided by Adjusted EBITDA (annualised for acquisitions).

(6) During the Period, to enhance alignment and commonality across our businesses, one business was reclassified from the Magnetics & Controls division (“M&C”) to the Sensing & Connectivity division (“S&C”) and one business from S&C to M&C. Prior year figures have been restated to reflect these reclassifications. There is no impact to the Group results. See note 6 of the attached condensed consolidated interim financial statements.

(7) Unless stated, growth rates refer to the comparable prior year period.

(8) These interim statements are based upon unaudited management accounts and have been prepared solely to provide additional information on trading to the shareholders of discoverIE Group plc. It should not be relied on by any other party for other purposes. Certain statements made are forward looking statements. Such statements have been made by the Directors in good faith using information available up until the date that they approved these interim statements. Forward looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.