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Investing.com --Discoverie Group PLC (LON:DSCV), a designer and manufacturer of customised electronics, on Thursday reported first quarter sales growth of 3% at constant exchange rates compared to the same period last year, with performance in line with management’s expectations.
The group maintained its full-year adjusted earnings guidance for the fiscal year ending March 31, 2026, despite mixed performance across its business units.
While three of the company’s four operating units - Sensing, Connectivity and Magnetics - delivered good organic sales growth, the Controls unit experienced subdued demand from several large customers, which is expected to continue through the first half of the financial year.
Orders declined 4% at constant exchange rates following a strong previous quarter and against a challenging comparison from last year’s first quarter. However, excluding one large booking from the prior year, underlying orders grew by 2% organically.
The company noted it maintains a strong order book for delivery through the remainder of the year.
"With an excellent pipeline of organic and inorganic opportunities and strong cashflow, the Group is well positioned to continue its through-cycle growth as market conditions further stabilise," the company stated in its trading update.
Acquisitions, including Hivolt and Burster, contributed 3% to the company’s growth during the quarter. The company also highlighted that gross margins remain robust and working capital is being tightly managed.