discoverIE Group (DSCV) Trading Update summary

Trading performance and outlook

• Q1 performance aligned with prior guidance, with underlying earnings expectations unchanged.

• Group sales declined 6% at constant exchange rates, with organic sales down 12% due to ongoing industrial customer destocking.

• Acquisitions contributed a net 6% to sales, partially offsetting organic declines.

• Gross margins remained robust, and cost controls support the 13.5% operating margin target for the year and 15% medium-term goal.

• Orders grew 13% at constant exchange rates, with a book-to-bill ratio of 1.01, indicating positive momentum.

Strategic positioning and growth drivers

• Strong pipeline of design wins, acquisition opportunities, and high cash flow position the group for continued growth as markets stabilise.

• Focus on sustainable markets such as renewable energy, medical, electrification of transportation, and industrial automation.

• Organic growth strategy aims to outpace GDP, supplemented by targeted acquisitions.

ESG and operational highlights

• Committed to net zero with an SBTi-aligned plan and awarded an ESG "AA" rating by MSCI.

• Recognised as Regional (Europe) Top Rated by Sustainalytics.

• Employs around 4,500 people across 20 countries, with principal operations in Europe, UK, China, Sri Lanka, India, and North America.