Electrocomponents PLC
20 September 2005
Embargoed until 7.00am 20 September 2005
Electrocomponents plc - Trading Update
Electrocomponents plc, the major international high-service distributor of
electronic, electrical and industrial supplies, is today giving a trading update
ahead of its results for the 6 months ended 30 September 2005.
The Board expects that Group profit before tax, and one-off costs for the 6
months ending 30 September 2005 will be around 30% below last year.
Up to the end of August, Group sales (adjusted for exchange rates and trading
days) followed the previously announced pattern with sales growth of around 3%.
However, in the first two weeks of September, UK sales have declined from -3% in
the period to the end of August, to -6% in September. There has been continued
strong growth in North America, Asia and the smaller European markets. Sales in
France, Germany and Italy continue to show some recovery.
Year-on-year gross margins have declined by around 1.5% points as a result of
realigning selling prices, targeted customer discounts and product mix. This
decline has occurred throughout most of the Group but the biggest impact remains
in the UK.
In the UK, one-off costs of around £1.5m have been incurred in this half-year,
which will have an annualised benefit of around £2m.
UK EBS system testing is progressing well and we are increasingly confident of a
successful implementation in the last quarter of this financial year. To achieve
this we have increased the level of internal and external support, which has
resulted in the forecast revenue costs increasing from £18m to £25m in this
financial year.
The Board's view of the medium term prospects for the Group has not changed
which supports the maintained level of dividend for the next three years.
The full results for the six months will be announced on 8 November 2005.
International Financial Reporting Standards will be used in reporting these
results.
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: 20 September 2005
UK Time: 08:50am for 09:00 am
UK Local Call Dial-In: 0845 140 0165
UK Free Call Dial In: 0800 953 0936
Europe & International Dial-In: +44 (0) 1452 568 061
Canada Toll Free Dial In: 18665 137 175
USA Toll Free Dial-In: 1866 224 2972
Quote Reference Number: 9739195
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 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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