discoverIE Group PLC on Wednesday reported lifted its interim dividend by 6.0% and said it expects annual earnings to be in line with expectations.

Shares were up 6.0% at 922.50 pence each on Wednesday morning in London.

For the six months that ended on September 30, the Surrey-based maker of customised electronics said revenue went up by 26% to £219.7 million from £174.3 million the year before.

Pretax profit surged to £14.8 million from £6.4 million, as underlying pretax profit jumped by 46% to £23.5 million from £16.1 million the year before.

It reported an underlying margin of 11.7%, compared to 10.3% the year before. discoverIE said it benefited from ‘strong organic sales growth during the period with operating leverage through efficiency gains and stable gross margins, and remains on track to achieve its 13.5% target in financial 2024 or financial 2025’.

discoverIE said orders continued at a high level and head of sales with a book-to-bill ratio of 1.08 resulting in a record order book at the period end of £257 million, 30% ahead of £198 million 12 months ago. The firm said in July that at June 30, the order book was a ‘record’ £240 million, up 7.1% from £224 million at March 31.

Chief Executive Officer Nick Jefferies said: ‘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.’

discoverIE declared an interim dividend of 3.55 pence per share, up 6.0% from 3.35p a year prior.

Looking ahead, the company said it intends to reach net zero scope 1 and 2 emissions by 2030 and scope 3 by 2040.

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