Interim Management Statement

RNS Number : 7276W

Electrocomponents PLC

03 February 2012

 

Electrocomponents plc, the world's leading high service distributor of electronics and maintenance products, has today issued its interim management statement for the period from 1 October 2011 to 31 January 2012.

CONTINUING GROWTH

The Group has performed well against strong comparatives during the four months to 31 January 2012. 

Group revenue grew by 4% year on year, with the International business growing by 5% and the UK by 1%. Within the International business Continental Europe grew by 5%, North America by 5% and Asia Pacific by 7%. 

In January Group revenue grew by around 1%. The International business, which represents over 70% of Group sales, grew by around 1% and the UK was flat.

Our North American business successfully went live with a new SAP-based ERP system in January, similar to that already used across our European businesses, and the system has performed well to date.

The implementation of our strategy is delivering good results.

§ We continue to gain 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 continuing to expand our service and product offers in China.

§ We are benefitting from our balanced product offering, with electronics and maintenance delivering around 4% and 5% sales growth respectively.

§ Our enhanced RS websites and increasing spend on search engine marketing have contributed to strong eCommerce revenue growth of around 16%. eCommerce sales represented around 55% of Group sales in the period, up from 49% in the prior year.

The Group has a strong balance sheet and there have been no significant changes to the Group's financial position during the period.

Ian Mason, Group Chief Executive, commented:

"The Group is performing well in the current macroeconomic environment. The implementation of our electronics, maintenance and eCommerce initiatives is driving business performance, with all regions delivering revenue growth. Our multichannel approach, with eCommerce at the heart of our business, has driven 16% eCommerce growth and channel share of 55%.

We are focused on implementing our strategic initiatives and, being mindful of economic conditions, we are continuing to keep tight control of costs. We have a well invested global infrastructure with market leading positions and a strong balance sheet, and we are well positioned to take advantage of the structural growth opportunities available to us internationally in highly fragmented markets."

Enquiries:

Ian Mason                              Group Chief Executive                          01865 204000

Simon Boddie                        Group Finance Director                        01865 204000

Nigel Main                              Group Corporate Communications       01865 204000

John Sunnucks/                     Tulchan Communications                     020 73534200

David Allchurch

Notes:

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

There will be a telephone conference call today at 08.00h for analysts and investors with replay access to Friday 10 February 2012.  Dial in instructions are set out below.

Electrocomponents plc - Conference Call Dial in Instructions
Date:	Friday 3 February 2012
UK Time:	From 07:50h for 08:00h call
Telephone number:	[phone]
Conference ID:	46552396
Chairman:	Ian Mason
Electrocomponents plc - Replay Dial in Instructions (available until Friday 10 February 2012)
Replay Telephone number:	[phone]
Conference Access Number:	46552396#

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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