Discoverie FY earnings hit record levels

Discoverie said adjusted operating profits were up 6% at £60.5m and adjusted pre-tax profits improved 4% to £50.1m as a 1.2 basis point improvement to 14.3% in adjusted operating margins helped to offset a 3% decline in revenue to £422.9m.

The FTSE 250-listed group also said it had delivered record adjusted earnings of 38.7p, up 5% year-on-year and exceeding the top end of market expectations.

Looking forward, Discoverie said growth drivers remained strong and stated it was "well positioned", with over £350.0m of new design wins in the year, supporting growth into the medium-term.

Chief executive Nick Jefferies said: "Discoverie delivered another strong performance with record operating profits and earnings, despite prolonged industry-wide destocking which resulted in 3% lower sales for the year. Adjusted operating margins increased to 14.3%, comfortably exceeding our target for the year, with excellent cash generation once again. Fourth quarter orders increased significantly in both divisions, as inventories normalised."

As of 0755 BST, Discoverie shares were down 0.16% at 632.0p.

Reporting by Iain Gilbert at Sharecast.com