Trading Statement

Electrocomponents PLC 29 March 2007 Embargoed until 7.00am 29 March 2007 Electrocomponents plc - Trading Update Electrocomponents plc, the leading global high-service distributor of electronic, electrical and industrial supplies, is today giving a trading update ahead of its results for the year ending 31 March 2007. The implementation of the Group's strategy is proceeding well and, while there remains much work to do, customers are valuing our improved EEM and MRO offers, evidenced by the Group's strong revenue growth. In the second half of the year, Group revenue (adjusted for exchange rates and trading days) has continued to grow at around 9%. Within this, the International business has grown by around 13.5%, slightly lower than the 15% in the first half, and in the UK, business growth has increased to around 2.5%, from 1% in the first half. The strengthening of Sterling, particularly against the US Dollar, will reduce the Group's reported revenue growth to around 5% in the second half. The Group's gross margin in the second half of the year has been slightly lower than in the first half, due largely to the strong growth of our North American business, which has lower margins. The building of a new warehouse and office in North America is proceeding to plan, with the move to the new facility expected to be made in the middle of the next financial year. One-off move costs of around £1m are expected to be incurred in the next financial year. The Enterprise Business System went live successfully in Germany, Italy and Austria in January. 90% of the UK and European revenue is now on the EBS platform. EBS costs for the financial year are expected to be around £20m versus £25m last year. The remaining EBS implementations in Europe (comprising four further businesses) are scheduled for the first half of the next financial year. The Group has maintained its tight control of costs, which have fallen as a percentage of revenue. The head office move has been completed giving benefits of around £1m per annum and a profit on sale of around £2m. The total annualised benefit of the ongoing programme to create a lower cost infrastructure is now around £7m, against the target of £10m. The Board anticipates that headline Group profit before tax for the year ending 31 March 2007 (adjusted for reorganisation costs and the profit on the sale of the head office building) will be at the upper end of our expectations. The full results for the year will be announced on 30 May 2007. There will be a telephone conference call today at 09.00am for analysts and investors. Dial-in instructions are set out below. Enquiries: Ian Mason Group Chief Executive 01865 204000 Simon Boddie Group Finance Director 01865 204000 Diana Soltmann Flagship Consulting 020 7886 8440 Details of telephone dial-in instructions: Date: 29 March 2007 UK Time: 08:50h for 09:00h UK Local Call Dial-In: 0845 302 2569 UK Free Call Dial-In: 0808 2380678 Europe & International Dial-In: + 44 (0) 1452 587 436 Canada Toll Free Dial-In: 1866 645 2898 USA Toll Free Dial-In: 1866 854 5856 Quote Reference Number: 3046752 Chairman: Ian Mason Electrocomponents plc Safe Harbour Statement: This announcement contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Electrocomponents plc and its subsidiaries is not warranted or guaranteed. These statements typically contain words such as ' intends', 'expects', 'anticipates', 'estimates' and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Although Electrocomponents plc believes that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors, many of which are beyond the control of Electrocomponents plc, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange

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