Trading Statement

Electrocomponents PLC 22 March 2005 Embargoed until 7.00am 22 March 2005 Electrocomponents plc - Trading Update Prior to its financial year-end on 31 March 2005, Electrocomponents plc, the major international high service distributor of electronic, electrical, industrial and commercial supplies, is today giving a trading update. The Board expects that Group profit before tax and goodwill amortisation for the year ending 31 March 2005 will be slightly below last year. While many of our businesses have shown good profit progression in this year, this progress has been offset by continued pressure on gross margins, higher planned costs on our systems projects, further investment in selling activities and higher pension contributions. Since we announced our first half results in November, the economic backdrop in the UK and our other major European markets has weakened as reflected by the decline in the Purchasing Manager Indices. Consequently, Group sales in the second half have grown by about 3% (at constant exchange rates and day adjusted) compared with 5.8% in the first half. February was a poor sales month in both the UK and Continental Europe, with sales falling below our internal forecasts. In March, the incidence of Easter in the last week of our financial year is likely to have a detrimental effect on sales, but the extent is difficult to predict. (Last year, Easter fell in April.) In the United Kingdom, our sales in the second half have declined by about 1.5% on last year. Allied, in the United States, has continued to achieve strong double digit sales growth with stable gross margins. Our businesses in Japan, China and the rest of Asia, including Australasia, have grown strongly. In Continental Europe, sales in France were slightly ahead of the second half of last year, recovering from a 2.6% decline in the first half, whilst growth elsewhere has been about 4%. E-commerce sales have again grown rapidly during this half-year, up about 35% on the second half of last year, and currently running at over 22% of the Group's sales. As previously indicated, the next European implementation of our systems project is in the United Kingdom: our current plans show that this should take place towards the end of the next financial year. In Asia the implementation in Hong Kong should be in the first quarter of the next financial year. Free cash flow for the current year will be lower than for the prior year. This mainly reflects the cash expenditures on the systems and other projects and higher stock levels to support sales growth and improved service levels. The build up of stock to support the systems implementation in the United Kingdom is now planned for the next financial year. The full results for the current year will be announced on 25 May 2005. International Financial Reporting Standards will be used in reporting the results for next year whilst the current year results will then be re-stated using these Standards. A separate announcement of the estimated impact of this re-statement will be made in July. There will be a telephone conference call today at 10.00am for analysts and investors. Dial-in instructions are set out below. Enquiries: Ian Mason Group Chief Executive 01865 204000 Jeff Hewitt Deputy Chairman / Finance Director 01865 204000 Details of telephone dial in instructions: Date: 22 March 2005 UK Time: 10:00 am UK Dial-In: 0845 2453471 Europe & International Dial-In: +44 1452542300 Canada Dial In: +44 1866 4765524 USA Dial-In: +44 1866 2201452 Quote Reference Number: 2753994 Chairman: Jeff Hewitt 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 the 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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