Trading Statement

RNS Number : 4087A

Electrocomponents PLC

30 March 2012

 



Electrocomponents plc, the world's leading high service distributor of electronics and maintenance products, has today issued a pre-close trading update for the year ending 31 March 2012.

BROAD BASED GROWTH DELIVERING RECORD FULL YEAR SALES

The Group will deliver full year sales growth of around 7%, including International growth of around 9% and UK growth of around 3%, which will result in record annual sales of over £1.2 billion.

In the final quarter Group sales growth will be around 1%, with the International business growing by around 2% and the UK flat. Within the International business Continental Europe sales will grow by around 2%, North America by around 1% and Asia Pacific by around 2%. 

The implementation of our strategic initiatives is delivering good results.

·     We continue to gain market share internationally, particularly from our smaller competitors who are not able to match our broad product range, high customer service and eCommerce capability.

·     We are benefitting from our balanced product offering, with electronics and maintenance delivering similar growth rates.

·     eCommerce, which is at the heart of our multi-channel approach, will grow by around 18% for the full year, with both our UK and Continental Europe businesses now reporting over 60% eCommerce revenue shares.

With 7% sales growth, a stable gross margin through the year and ongoing cost leverage we anticipate that Group profit before tax for the full year will be in line with expectations.

Ian Mason, Group Chief Executive, commented:

"I am pleased to report that the Group will deliver record full year sales in excess of £1.2 billion, representing full year sales growth of 7%, including a strong performance from our International business which will grow by 9%.  

This performance is broad-based, with all regions and both electronics and maintenance delivering growth, and is being driven by the continued development of our industry-leading eCommerce channel which will grow by 18% for the full year."

Enquiries:

Ian Mason	Group Chief Executive	01865 204000
Simon Boddie	Group Finance Director	01865 204000
Nigel Main	Group Corporate Communications	01865 204000
John Sunnucks / David Allchurch	Tulchan Communications	020 7353 4200

Notes:

-     All revenue growth rates are adjusted for trading days and foreign exchange rate movements.

-     The Group will announce its full year results on 24 May 2012.

There will be a telephone conference call today at 08.00h for analysts and investors with replay access to Thursday 5 April 2012.  Dial-in instructions are set out below.

Electrocomponents plc - Conference Call Dial-in Instructions
Date:	Friday 30 March 2012
UK Time:	From 07:50h for 08:00h call
Telephone number:	[phone]
Conference ID:	53442394
Chairman:	Ian Mason
Electrocomponents plc - Replay Dial-in Instructions (available until Thursday 5 April 2012)
Replay Telephone number:                             [phone]
Conference Access Number:                           53442394#

Electrocomponents plc is the world's leading high service distributor of electronics and maintenance products, with operations in 32 countries.  Founded in 1937 the business is listed on the London Stock Exchange and employs around 5,800 people.  Today, through our trading brands of RS and Allied, we offer 550,000 products through the internet, catalogues and at trade counters to 1.6 million customers and have a market leading reputation for service excellence.  Our products, sourced from 2,500 leading suppliers, include electronics, electrical, mechanical, automation and health and safety components.

The business satisfies the small quantity needs of its customers who are typically electronics or maintenance engineers in business. A large number of high quality goods are stocked, which are dispatched the same day that the order is received.  The average customer order value is around £140 although the range of order values is wide.  The Group's large numbers of customers come from a wide range of industry sectors with diverse product demands.

 

END

 

 

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