Business
Third Quarter Trading Update
Third Quarter Trading Update.
About this update from Discoverie Group Plc
[{"type":"text","content":"\n \nRNS Number : 3532B discoverIE Group plc 30 January 2020 \n\nFor Release\n7.00am, 30 January 2020 \n \ndiscoverIE Group plc\nThird Quarter Trading Update\n \ndiscoverIE Group plc (LSE: DSCV, \"discoverIE\" or the \"Group\"), a leading international designer, manufacturer and supplier of customised electronics to industry, today issues a trading update for its third quarter, covering the three months to 31 December 2019. \n \nGood trading momentum in our Design & Manufacturing division (\"D&M\") has continued through the third quarter and the Group is on track to deliver full year earnings in line with our expectations. \n \nIn the D&M division, third quarter sales increased1 by 16% CER2, representing 7% organic growth3 in line with the performance in the first half. Growth was driven by sales into our target markets, particularly renewable energy and medical. D&M orders were in line with sales. D&M sales comprised two thirds of Group revenue compared with 63% in the first half and generated over 80% of Group profits. Sens-Tech, which was acquired in October 2019, is performing well and in line with our expectations. \n \nThe Custom Supply (\"CS\") division experienced the effect of some short-term customer destocking in December, particularly in general industrial markets in Germany and the UK, which resulted in third quarter sales being down by 10% organically. Orders were ahead of sales in the period, with a book to bill ratio of 1.06, and January sales and orders have returned to the higher levels achieved in the first half of the year. \n \nOverall, Group third quarter sales increased by 6% CER (up 3% on a reported basis), level organically with last year and with orders ahead of sales. Year to date Group sales have increased by 8% CER, 7% reported and by 3% organically, driven by the D&M division which has grown by 7% organically. \n \nThe Group order book at 31 December 2019, of which over 80% is for delivery over the next twelve months, continues to be strong, increasing by 5% CER year-on-year, with the D&M division increasing by 12% CER and the CS division reducing by 7% CER. \n \nGroup gross margin in the third qu...