discoverIE – will this week’s AGM Trading Update get the shares moving a lot higher?

Mark Watson-Mitchell - 21.07.2026

At the end of this week, on Friday, 24^th July, discoverIE Group (LON:DSCV), the leading international group of businesses that design and manufacture customised electronic components for industrial applications, will hold its AGM to sign off its 2026 Report & Accounts.

Ahead of that meeting, the £667m-capitalised company will issue its Trading Update covering the first quarter of this current year.

I expect it to be positive, noting a good Order Book with a growing pipeline, as well as hinting that its thirst for new acquisitions continues.

The group’s shares, which have been as low as 505p and up to 800p within the last year, are now trading at around 685p on just 16.5 times current year earnings.

My view is that they are heading higher again, to possibly trade within the 750p to 800p price range.

The Business

This Guildford-based group, which has made 30 acquisitions in the last 15 years, employs some 4,600 people across 21 countries, with its principal operating units located in Mainland Europe, the UK, China, Sri Lanka, India and North America.

The group supplies application-specific components to original equipment manufacturers ("OEMs") internationally through its two divisions, Magnetics & Controls and Sensing & Connectivity.

By designing components that meet customers' unique requirements, which are then manufactured and supplied throughout the life of their production, a high level of long-term repeating revenue is generated.

The group focuses on key target markets driven by structural growth, increasing electronic content and sustainability, namely industrial automation & connectivity, security, renewable energy, medical and the electrification of transportation.

With this focus, the group aims to grow well ahead of GDP through the economic cycle and to supplement that with complementary acquisitions, compounding growth.

2026 Final Results

On Wednesday, 3^rd June, the group reported its results for the year to end-March, showing revenue growth of 5% to £443.3m and adjusted operating profit of £61.0m, a 1% increase.

Adjusted earnings per share rose 4% to 40.3p, while reported profit before tax increased by 13% to £36.1m.

The company generated strong free cash flow of £36.6m and announced three acquisitions for a combined £95m, enhancing its presence in the security market.

The revolving credit facility was extended to May 2030, and the group stated that the outlook for the new year was positive with strong order growth continuing.

Management Comment

CEO Nick Jefferies stated that:

"The Group has delivered another set of robust results where profits and earnings reached new highs and the business saw a return to strong levels of organic orders and sales growth by the year end, which has continued into the new year.

Trading momentum improved through the year with final quarter orders increasing by 14% organically, sales increasing by 5% organically and with orders ahead of sales, giving us confidence as we start the new financial year.

To support this strengthening growth outlook, additional investment in operating, sales and engineering capacity has been made to ensure we capitalise on the structural growth opportunities in our target markets.

We have announced three acquisitions in the last six months, 3G in North America, Trival in Slovenia and Storm in the UK, for a combined consideration of £95m.

Trival and 3G increase our exposure in the defence market, while Storm adds to our Human-Machine Interface cluster.

All three businesses have a strong record of growth, with margins well ahead of the Group's current margin target.

The outlook for the year ahead is positive with full year adjusted earnings in line with Board expectations.

First quarter trading has started well with strong growth in orders and further good sales growth and orders running well ahead of sales.

We remain focused on generating strong compounding growth through the cycle. 

The combination of organic growth, a strong order book providing good visibility, an accelerating pipeline of design wins converting into revenue, and a clear and consistently executed acquisition strategy gives us confidence in the outlook."

The Equity

There are some 97.36m shares in issue.

The larger holders include Van Lanschot Kempen Investment Management (Netherlands) (10.85%), BlackRock Investment Management (7.05%), Swedbank Robur (Sweden) (3.9%), Impax Asset Management (3.77%), NFU Mutual (UK) (3.45%), Columbia Threadneedle (UK) (3.30%), ClearBridge Investments (3.05%), Montanaro Asset Management (2.99%), Danske Bank A/S (Investment Management) (2.86%), and Legal & General Investment Management (2.12%).

Broker Views

There are some 11 broker analysts following the group, with the majority calling the shares as a Buy.

Analyst Guy Hewett, at Cavendish Capital Markets, has a Buy, with a 1110p TP.

For the current year to end-March 2027, he estimates revenues will be £465.8m (£443.3m), with adjusted pre-tax profits of £54.4m (£51.9m), raising earnings to 41.5p (40.3p) and hiking the dividend up to 13.6p (13.0p) per share.

For 2028, Hewett goes for £477.5m sales, £56.1m profits, 42.8p earnings and a 14.1p dividend.

The 2029 sales could be around £489.5m, with £58.1m profits, 44.3p earnings and a 14.7p dividend.

At Singer Capital Markets, analysts Henry Carver and Caroline de La Soujeole say Buy, looking for 850p.

Their estimates for this year, are for £472.6m revenue, £56.1m profits, 42.5p earnings and 13.5p dividend.

For the year to end-March 2028, they look for £490.1m revenue, £59.4m profits, 45.0p earnings and paying a 13.90p dividend.

Berenberg Bank rates the shares as a Buy, with a 1050p Target Price.

Deutsche Bank says Buy, with a TP of 870p.

Jefferies have them as a Hold, with a 685p TP.

Sector Perform is the call by RBC Capital Markets, with 800p as a TP.

Stifel say Buy, with a 1000p TP.

My View

My gut feeling is that a good positive statement this Friday will certainly create some upward impetus for this group’s shares, now 685p, with at least 750p quickly in sight.

(Profile 08.08.19 @ 438p set a Target Price of 550p*)

(Profile 16.04.25 @ 541p set a atRget Price of 675p*)