Discoverie weathers UK economic storm with record orders
British electronics designer and manufacturer Discoverie is hoping the size – and cost – of its products will be the key to weathering the UK’s economic storm.
The London-listed company has seen its underlying operating profit rise more than a third to £25.6m in the past six months, while pre-tax profit boomed over 130 per cent to £14.8m, according to the group’s interims today.
Raging inflation has eaten into the profits of most companies operating in the tech industry.
However, Discoverie has banked a record order book of £275m in the second half this year, due in part to the demand for tech remaining so high.
Shares jumped around 4.5 per cent to 910.00p per share by mid-afternoon.
Group chief executive Nick Jefferies said: “We are well positioned in a changing world. Our products are essential in customers’ applications and amount to a small proportion of their spend, providing us with revenue visibility and stable margins. Additionally, our broad international footprint enables us to respond quickly to production movements.
“The second half has started well with continued organic sales growth over last year and a record order book level, which we expect to begin to normalise as it converts into sales through the second half of the year. The Group is on track to deliver full year underlying earnings in line with the Board’s expectations.”