discoverIE Group (LSE:DSCV) said on Wednesday that full-year adjusted earnings are tracking ahead of the Board's expectations, as a trading update covering the first six months of the financial year to 31 March 2027 pointed to strengthening momentum across the business.
The London-listed designer and manufacturer of customised electronics reported organic sales growth of 8% for the half, accelerating from 6% in the first quarter to 10% in the second.
Growth was led by the Magnetics & Controls division, up 13% organically on strong demand from industrial electrification, renewable energy and security customers, while Sensing & Connectivity grew just 1% organically, a result the company attributed to longer supply lead times in some segments and a tougher prior-year comparator.
Including recent acquisitions, total group sales rose 13% at constant exchange rates and 14% on a reported basis.
Orders climbed 22% organically, with Magnetics & Controls up 25% and Sensing & Connectivity up 18%, taking the book-to-bill ratio to 1.12 and building an order book the company said supports expectations of good growth in the second half.
The update follows a year ended 31 March in which group revenue reached £443.3m and the order book stood at £165m; momentum has since carried through, with first-quarter organic orders already up 31%.
Gearing is expected to be 1.6x at 30 September, discoverIE said, rising to around 1.8x by 31 March once the acquisition of 3Gmetalworx completes, a deal for a 90% stake agreed in May for US$67.5m and now progressing through regulatory approval.
discoverIE said it remains "well positioned to build on the long-term track record of continued compounding growth through the cycle", with interim results due on 2 December.