DiscoverIE : FY26 Preliminary Results

About this update from Discoverie Group Plc

03 June 2026 Download (opens in new window) PDF 673 KB Preliminary results for the year ended 31 March 2026 Continued earnings growth and building sales momentum discoverIE Group plc (LSE: DSCV, "discoverIE" or "the Group"), a leading international designer and manufacturer of customised electronics to industry, today announces its preliminary results for the year ended 31 March 2026 ("FY 2025/26" or "the year"). FY 2025/26 FY 2024/25 Growth % CER (2) growth % Revenue £443.3m £422.9m +5% +5% Adjusted operating profit (1) £61.0m £60.5m +1% +1% Adjusted operating margin (1) 13.8% 14.3% -0.5ppts -0.4ppts Adjusted profit before tax (1) £51.9m £50.1m +4% Adjusted EPS (1) 40.3p 38.7p +4% Reported profit before tax £36.1m £32.0m +13% Reported fully diluted EPS 29.4p 25.0p +18% Interim dividend per share 13.0p 12.5p +4% Highlights Increasing growth with strong finish to the year Orders grew 5% organically (3) for the year with 14% growth in Q4 Sales grew 2% organically for the year with 5% growth in Q4 Adjusted operating profit up 1% to £61.0m Increased operational investment to support sales & orders growth On track for medium-term 17% operating margin target driven by organic and inorganic initiatives (including recent high margin acquisitions) Continued earnings progress with adjusted EPS up 4% to 40.3p and up 14% CAGR over last 10yrs Excellent free cash flow (4) of £36.6m from capital-light operations Free cash conversion of 92%, comfortably ahead of 85% target Cash conversion rates average c.100% over the last decade Three high growth earnings & margin accretive acquisitions announced (5) Combined consideration of £95m for an EBIT multiple of 9x Storm (5) completed in the year, Trival in April 2026 and 3G announced in May 2026 Increased presence in fast growing security target market in line with strategy Revolving credit facility of £240m extended to May 2030 Year-end gearing (6) of 1.2x, proforma gearing(6) including acquisitions of 2.2x Proforma gearing reducing to 1.8x by March 2027, comfortably within our target range Good start to the new year with strong growth in orders, and sales momentum Orders well ahead of sales with growing order book Strong pipeline of design wins underpins future organic growth Continuing pipeline of acquisition opportunities Benefitting from improving industrial market conditions and growing security market demand Nick Jefferies, Group Chief Executive, commented: "The Group has delivered another set of robust results where profits and earnings reached new highs and the business saw a return to strong levels of organic orders and sales growth by the year end, which has continued into the new year. Trading momentum improved through the year with final quarter orders increasing by 14% organically, sales increasing by 5% organically and with orders ahead of sales, giving us confidence as we start the new financial year. To support this strengthening growth outlook, additional investment in operating, sales and engineering capacity has been made to ensure we capitalise on the structural growth opportunities in our target markets. We have announced three acquisitions in the last six months, 3G in North America, Trival in Slovenia and Storm in the UK, for a combined consideration of £95m. Trival and 3G increase our exposure in the defence market, while Storm adds to our Human-Machine Interface cluster. All three businesses have a strong record of growth, with margins well ahead of the Group's current margin target. The outlook for the year ahead is positive with full year adjusted earnings in line with Board expectations. First quarter trading has started well with strong growth in orders and further good sales growth and orders running well ahead of sales. We remain focused on generating strong compounding growth through the cycle. The combination of organic growth, a strong order book providing good visibility, an accelerating pipeline of design wins converting into revenue, and a clear and consistently executed acquisition strategy gives us confidence in the outlook." Analyst presentation: An analyst presentation will be held today at 9.30am (UK time) at the offices of Investec. If you would like to join in person or via the live webinar, please contact Burson Buchanan at [email protected]. Enquiries : discoverIE Group plc [email protected] Nick Jefferies Group Chief Executive Simon Gibbins Group Finance Director Lili Huang Head of Investor Relations Burson Buchanan 020 7466 5000 Jamie Hooper, Toto Berger [email protected] Notes: (1) 'Adjusted operating profit', 'Adjusted operating margin', 'Adjusted EBITDA', 'Adjusted profit before tax', 'Adjusted EPS', 'Adjusted operating cash flow' and 'Free cash flow' 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 £16.3m less net acquisition and disposal net credits of £0.5m) totalling £15.8m. Equivalent adjusting items within the FY 2024/25 adjusted results totalled £18.1m. 'Adjusted EBITDA' also excludes the impact of IFRS 16, non-cash share-based payments cost and IAS19 pension costs in line with the Group's banking covenants. For further information, see note 6 of the attached condensed consolidated financial statements. (2) Growth rates at constant exchange rates ("CER"). In calculating CER for the year, the average Sterling rate of exchange strengthened 5% against the US Dollar but weakened 3% against the Euro and weakened 5% on average against the three Nordic currencies resulting in no significant net impact for the year. (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, Burster in January 2025 and Storm in December 2025) adjusted for any disposals. (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 6 of the attached condensed consolidated financial statements. (5) Keymat Technology Ltd was acquired in December 2025 for £5.5m and operates under the trading name Storm Interface. The business is referred to as Storm. Trival completed in April 2026 for €45.5m (£39.9m) and the acquisition of 90% of 3Gmetalworx ("3G") was announced in May 26 subject to regulatory approval, for $67.5m (£50.0m). All amounts shown are the debt free, cash free initial consideration. (6) Gearing ratio is defined as net debt divided by Adjusted EBITDA (annualised for acquisitions). Proforma gearing includes the acquisition of Trival (acquired April 2026) and 3G (announced in May 2026) as if they had been acquired at 31 March 2026, additionally with a forecast of gearing expected as at 31 March 2027. (7) Unless stated, growth rates refer to the comparable prior year. (8) These financial statements have been prepared solely to provide additional information on trading to the Shareholders of discoverIE Group plc. They 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 preliminary financial statements. Forward looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks. Multimedia Files:

View stock analysis, news, and events for Discoverie Group Plc