Discoverie Share Discussion Threads

[skeln] 02/6/2019 12:51

Thanks for your posts rivaldo appreciated

[rivaldo] 30/5/2019 10:10

Numis today reiterate their 500p target:

[rivaldo] 28/5/2019 12:09

New distribution deal win - note the customisable element to the win:



"EOS Power fits perfectly with the custom, design-in strategy of Acal BFi. EOS Power is a very strong brand and technical partner, especially in the medical power supply sector. This will greatly enrich our offering as a strategic supplier in the medical power segment," said Robert Rohde, European Business Development Director, Power and Magnetics at Acal BFi

Acal BFi supports customers through the design and development process, through to selecting and trialling technologies, up to the creation of prototypes and production samples. It operates in ten countries to enable customers to receive local support throughout Europe.

"From our extensive experience we understand that not all end customer requirements will be satisfied by a standard product alone. Through our new partnership with Acal BFi, we are delighted to now be able to offer our customisable, application-specific power solutions to even more customers across Europe. Acal BFi are able to support with every aspect of a customers design, integration and production, making them an ideal service and supply partner for our industry leading power supplies,” said Teresa Fernandez, Sales Manager, EMEA at EOS Power."

[rivaldo] 07/5/2019 12:20

Buying at 450p now.

[rivaldo] 06/5/2019 17:58

Great to see Charles Stanley buying and going above 5% with 4.18m shares:

[rivaldo] 03/5/2019 09:52

Here's extracts from Finncap's summary.

They currently go for 29.2p EPS and a 10.1p dividend for the current year, but EPS forecasts may be increased as there's capacity for more acquisitions, and trading is of course going well:

"Prospects enhanced, debt reduced, target raised

On 16 April, discoverIE raised £29m equity to acquire two custom design and manufacturing businesses for an initial £15.9m, with the remainder to be used to
reduce gearing. The acquisitions offer complementary products that build on the group’s existing magnetics and sensor products, expand the geographic footprint
(with 80% of acquired sales in the US), further improve margins and strengthen
organic opportunities in target markets. Coupled with confirmation that Q4 trading
remained strong, we view this as another step forward along discoverIE’s proven
growth strategy."

"Target price upgraded to 535p from 488p. discoverIE continues to prove its strategy and the potential in its chosen growth markets. Coupled with the reduced financial risk post the equity raise, we now believe a valuation in line with peers Diploma, Trifast and XP Power is appropriate. This equates to a calendar 2020 P/E of 17.8x and a 535p target."

[rivaldo] 03/5/2019 08:30

Nice - Finncap have today increased their target price to 535p (from 488p).

[rivaldo] 26/4/2019 08:47

Very good coverage of the excellent results, with an interview with the CEO and this analysis from Peel Hunt:

Https ://www.proactiveinvestors.co.uk/companies/news/219036/discoverie-pursuing-robust-and-well-executed-strategy-as-proven-by-recent-deals-and-solid-underlying-trading-219036.html

"Blue Sky:

Analysts at ‘house’ broker Peel Hunt said it sees the recent deals and solid underlying trading as “further proof of a robust and well executed strategy”.

They pointed out that the two April acquisitions are both “perfectly in line with the Group strategy and very comfortable fits”.

After the placing and purchases, the analysts estimates that the group will still have around £30mmln of firepower for further deals.

They pointed out that due to dilution from the placing, its earnings per share forecast for full-year 2020 remains unchanged, but their pre-tax profit estimates was increased by 9% to £31.2mln.

Peel Hunt has a 500p target price on, with the shares trading at 436p each, having gained over 23% in the year to date, giving the firm a market cap of around £347mln."

[rivaldo] 24/4/2019 11:32

RNS - Standard Life have been buying heavily, going straight to 9.59% from 7.16%, perhaps due to placing participation. They now have 7.73m shares:

[rivaldo] 24/4/2019 09:34

Looking very solid - hopefully new highs coming soon.

[rivaldo] 23/4/2019 07:36

Peel Hunt today reiterate their Buy and 500p target:

[rivaldo] 18/4/2019 12:20

Good to see the directors participating and buying £72,000 of stock in the placing:

[rivaldo] 17/4/2019 12:46

Looks like more acquisitions are on the way:



" Tuesday 16 April 2019 3:55pm
Electronics manufacturer Discoverie looks to break into US market with acquisition

London listed electronics manufacturer Discoverie has made its first move into the United States with the £14.8m buyout of US parts maker Hobart.

The parts supplier for electronic devices announced the acquisition alongside the buy of another firm in the UK, as well as a £29m fundraising round via a share placing.

Discoverie makes parts for renewable energy, transportation, medical equipment and industrial wireless connections. Hobart makes custom transformers, inductors and magnetic components.

The acquisition marks the small cap listed firm’s first inroads into the US market. Discoverie chief executive Nick Jefferies told City A.M.: “They have a customer base that is almost entirely in the USA. That brings us revenue and opportunity to sell more in the US market.

“Allied to that, they have manufacturing in Mexico, which enables us to make products on the continent in the Americas rather than making it in India or China which we currently do, and shipping it all around the world. It makes a more efficient supply chain for us.”

Jefferies added the £29m placing would help fund future acquisitions. He said: “We’re looking for more businesses that are based in central western Europe, but increasingly in North America, that design niche, custom electronic components that can be sold into growth applications which are used worldwide. So watch this space.”

[rivaldo] 16/4/2019 16:16

Newswire report...

"Electronics company discoverIE's acquisitions of Positek and Hobart will fit well with its current product offering and will extend its reach to new markets, says Guy Hewett of finnCap, adding that they are confirmation that its growth strategy is moving along well. These will improve margins and strengthen organic opportunities for the company in target markets, says Hewett. "The acquisitions offer complementary products that build on the group's existing magnetics and sensor products, expand the geographic footprint--with 80% of acquired sales in the U.S.," he adds. The brokerage has a target price of 488 pence on the stock."

[rivaldo] 16/4/2019 09:10

Finncap retain their 488p valuation.

They haven't yet included today's acquisitions in their forecasts, but state:

"With prospects enhanced by these acquisitions and debt reducing, the risk/reward has
further improved and we expect the valuation discount (me - to sector peers) to close."

With current year forecasts at 29.2p EPS, with a 10.1p dividend, DSCV looks pretty good value at current levels.

[rivaldo] 16/4/2019 07:23

Surprise! The year end update was evidently brought forward due to today's acquisition news.....

Excellent trading update, summed up by:

"Trading in the fourth quarter continued strongly and the Group expects to deliver full year earnings in line with the Board's expectations."

Plus good cash generation with better than expected debt.

And we have an institutional placing at 400p to help with two more nicely profitable acquisitions. A very good price considering where the share price fell to only recently. And I suspect the acquisitions will be earnings-enhancing more quickly than next year given the various synergies which DSCV have already proved they can achieve.

[eggbaconandbubble] 15/4/2019 16:41

Maunday Thursday - The Last Supper!!!!

[rivaldo] 15/4/2019 15:52

Thursday to be precise.....

[eggbaconandbubble] 15/4/2019 11:32

Trading update due about now. Innit?

[mfhmfh] 14/2/2019 15:18

tipped/listed as a 'Great Idea' in today's Shares Mag. GLA.

[mfhmfh] 11/2/2019 14:40

Peel Hunt today reiterates buy rating and 500p target price.

[rivaldo] 11/2/2019 07:21

Cheers mfhmfh - to give the Mail credit, they caught on to the transformation here faster than most.

Nice summary and tip. Here's the conclusion:

"Customers include multinationals such as Siemens, Rolls-Royce and Airbus, as well as hundreds of smaller companies.

No single client accounts for more than 4 per cent of turnover – which again makes DiscoverIE a more robust business than it was before.

The company has grown both organically and through a series of acquisitions.

Jefferies has bought 13 businesses in the past decade and now aims to buy about two a year, always looking for high quality, well managed firms producing niche electronic components.

Brokers expect a 10 per cent increase in turnover to £428million for the year to March 31, 2019, with profits rising 27 per cent to £27.7million. A dividend of 9.5p is pencilled in, up from 9p last year.

Midas verdict: DiscoverIE has soared in value during Jefferies’ stewardship and investors have benefited. But there should be more to come. At £4.07, the shares remain attractive."

[rivaldo] 01/2/2019 10:36

New report from Edison (which fails to emphasise that further earnings-enhancing acquisitions are likely):



"Valuation: Strong trading supports upside

For FY19e, the stock is trading on an EV/EBITDA of 9.6x (at an 11% discount to its
peer group) and at a 2% discount on a P/E basis. With continuing growth and
higher margins, further progress in increasing the weighting of business towards
D&M (including accretive acquisitions), combined with good control over the
profitability of the CS business, should help to close the valuation gap further. The
stock is also supported by a dividend yield of more than 2%."