discoverIE Group - Moving in the right direction

In H125, discoverIE used its flexible operating model and ongoing efficiency initiatives to drive underlying operating profit growth despite a 5% revenue decline. Customer destocking has abated during H1 and order intake was 7% higher year-on-year and 1% higher on an organic basis. Strong design win activity positions the company for growth as customer demand returns. Management maintained its earnings outlook for FY25 and in addition to improving customer demand, lower interest rates should start to benefit the company from H225. With strong cash generation reducing gearing, we expect further M&A to boost growth and margins.