Electrocomponents PLC
14 February 2008
Electrocomponents plc, the leading international high service distributor, has
today issued its second half interim management statement for the year ending 31
March 2008.
For the four months up to 31 January 2008, Group sales, adjusted for trading
days and foreign exchange movements, have grown at around 4.5% with the
International business growing at around 7% and the UK business at approximately
0.5%. Within the International business, which represents around 60% of Group
revenue, Europe sales growth has been around 4%, North America around 11% and
Asia Pacific approximately 14%.
Compared with the first half of the financial year, sales growth in North
America and Asia Pacific has remained at similar double digit rates. Within
Asia Pacific we have seen accelerating sales growth in China as our improved
customer offer takes effect. In both the UK and Europe we have seen weaker
months in November and December followed by a stronger January. e-Commerce is
growing strongly and now accounts for around 32% of Group sales, up from 28% in
2007.
Overall year to date, Group sales growth has been around 6% with International
sales growing at around 9.5% and UK sales by around 1%. Within the
International business Europe has grown at around 7%, North America at around
11.5% and Asia Pacific by around 15%.
The Group gross margin in the four months ended 31 January 2008 has improved
slightly over the first half of the financial year. This was driven by the
ongoing activities to reduce product costs, rationalisation of the product range
and targeted price increases.
Good progress continues to be made improving our offers to our Electronic and
Electromechanical (EEM) and our Maintenance, Repair and Operations (MRO)
customers. In January we launched a completely redesigned RS website which
includes new world class search functionality that makes it easier for customers
to find and buy the products that they need. Early customer reaction has been
positive.
New technology introductions, joint supplier promotions and greater order and
pricing flexibility continue to drive growth across the markets. We have also
achieved a number of large account wins. The process control and automation
(PCA) technology is performing particularly well.
With the continued growth of our International business, stable gross margins,
and targeted cost actions, we anticipate that we will deliver headline profit
before tax for the year ending 31 March 2008 in line with our expectations. In
addition, we expect strong cash generation.
There have been no significant changes in the financial position of the Group
since the publication of the Group's half-yearly financial report for the six
months ended 30 September 2007.
Enquiries:
Ian Mason Group Chief Executive 01865 204000
Simon Boddie Group Finance Director 01865 204000
John Sunnucks and David Allchurch Tulchan Communications 020 7353 4200
There will be a telephone conference call today at 09.00am for analysts and
investors with replay access for 7 days. Dial in instructions are set out
below.
Electrocomponents plc - Conference Call Dial in Instructions
Date: 14 February 2008
UK Time: 08:50h for 09:00h
Quote Reference Number: 34059291
Chairman: Ian Mason
UK Local Call Dial in: 0845 245 0248
UK Free Phone Dial in: 0800 953 0810
Europe & International Dial in: +44 (0) 1452 565 124
Canada Toll Free Dial in: 1866 754 7526
USA Toll Free Dial in: 1866 789 2220
Electrocomponents plc - Replay Dial in Instructions (available until 21 February 2008)
Replay Access Number: 34059291#
UK Free Phone Dial in: 0800 953 1533
International Dial in: +44 (0) 1452 55 00 00
Canada Toll Free Dial in: 1866 878 9237
USA Toll Free Dial in: 1866 247 4222
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.
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