April 21, 2024

Paull Ank Ford

Business Think different

discoverIE Group PLC prepared to quickly mitigate the effects of the coronavirus pandemic

The group benefits from a strong and diversified customer base, and demand remains robust with good new order intake in March but it has seen a bit of disruption to its business of late

discoverIE Group PLC (), the customised electronics maker, said it is well prepared to quickly mitigate any disruption from the spread of the coronavirus.

The group said that the current financial year, which runs to the end of March, had seen strong momentum throughout the year but saw some isolated disruption to the business in the fourth quarter as a result of the outbreak of the virus.

The wider potential impacts of the pandemic on trading are difficult to predict but the group reassured shareholders that it remains well funded, with a strong balance sheet, good cash liquidity and more than £100mln of headroom against its debt facilities.

The group operates two manufacturing facilities in China’s Guangdong province and also has a number of Chinese suppliers and customers. Following an extended shut-down after the Chinese New Year, the facilities are again operational, with production returning to planned levels. Similarly, its Chinese suppliers have recommenced operations and sales to DiscoverIE’s customers are returning to normal levels, with demand recovering quickly.

The group’s Design & Manufacturing division operates a diversified and flexible manufacturing footprint with additional facilities in India, Sri Lanka, Thailand, South Korea, Poland, Slovakia, the Netherlands, Belgium, UK, Germany, the Nordic region, Mexico, US and Canada, all of which are currently operating without major disruption. All of the businesses have detailed business continuity plans and are maintaining operational continuity.