The DiscoverIE Group Plc Board is recommending a 4% (0.35 pence) increase in the final dividend to 8.60 pence per share, giving a 4% increase in the full year dividend per share to 12.5 pence (FY 2023/24: 12.0 pence) and an adjusted earnings cover of 3.1 times (FY 2023/24: 3.1 times). The final dividend is payable on 1 August 2025 to Shareholders registered on 27 June 2025.
Other financial highlights include:
Adjusted operating profit up 8% CER
o Adjusted operating margin of 14.3% (H2: 14.8%), up 1.2ppts, well ahead of FY 2024/25 13.5% target
o Record adjusted EPS up 5%, exceeding the top end of market expectations
Revenue down 2% CER as industry-wide inventory correction works through
o Full year sales -7% organic, improving through the year (H1: -10%, H2: -4%)
Orders return to growth up 2% organic, led by S&C up 12% (later-cycle M&C: -4%)
o Q4 pick-up with both divisions increasing by 15% organically
Excellent free cash flow of £40.4m, up 9% with a conversion rate of 106%, well above 85% target
o Additionally, proceeds from Santon Solar Business & Acal BFi disposals received in full (£13m)
o Buy-in of legacy defined benefit scheme (c.£1.5m cash savings per year)
o Year-end gearing of 1.3x, below the lower end of target range (1.5x to 2.0x)
Further progress towards other key targets
o ROCE of 15.8% (up 0.1ppt) with ROTCE of 52%
o Carbon emissions reduced by 59% since CY 2021, well on track for 65% target in CY 2025
Two earnings-accretive, bolt-on acquisitions for initial consideration of £29m
o c.£80m funding capacity for further acquisitions
Adjusted operating margin target upgraded to 17% by FY 2029/30 (from 15% by FY 2027/28)
Outlook: Growth drivers remain strong with the Group well positioned
o Over £350m of new design wins in the year support growth into the medium-term
o High growth security market added as a fifth target market
o Strong pipeline of acquisition opportunities
o Group will benefit from further reductions in interest rates
o Limited direct impact from US tariffs
