Organic growth at all its division propelled Acal plc revenues forward 21% in the first six months from £156.7m to £190.2m. The supplier of customised electronics to industry posted a year on year 42% increase in underlying profit to £10.4m.
The company also announced a change of name to discoverIE Group plc to reflect the growing contribution of its design and manufacturing business.
Commented Nick Jeffries, Group CEO, “Since 2011, we have been building a Design and Manufacturing business that would transform the Group into a higher margin business. D&M now accounts for 78% of Group underlying profit contribution and to reflect this and, more importantly, our further ambitions, we are announcing today that the Company is changing its name to discoverIE Group recognising how we help our customers to ‘discover innovative electronics’. The Group’s operating business names, which customers know and rely upon, remain unchanged, preserving trusted brands.”
Group organic sales grew 9%, design and manufacturing sales rose 11% and now represent 57% of group sales, and custom supply (previously known as custom distribution contributed a 7% increase in sales.
Recent acquisition, Variohm is also performing well with strong sales and order growth.
The company says it has its highest ever period end order book of £111m (+16% CER) and that new project design wins increased by 30% to over £90m. It sees other acquisition opportunities developing
Added Jeffries: “This is a strong set of results. Sales increased by 21%, of which 9% was widespread organic growth across the Group, and underlying earnings per share increased by 24%. The second half has started well and we are on track to deliver full year performance in line with our expectations, supported by a record order book of £111m. Together with an increase in new project design wins of over 30%, with an estimated lifetime sales value of over £90m, we are well positioned for continued growth.
We have many growth opportunities ahead of us as we drive towards our stated targets, and our ambition remains to repeat the performance of the last five years by doubling revenue and underlying earnings per share through a combination of organic growth and value-enhancing acquisitions.”