Trading Statement

RNS Number : 1682P

Electrocomponents PLC

06 February 2019

 

Electrocomponents plc today issues a trading update for the four-month period to 31 January 2019

	Like-for-like revenue growth(1)
Region	Q1 to June 2018	Q2 to Sept 2018	4 months to 31 Jan 2019
Northern Europe	10%	11%	8%
Southern Europe	7%	7%	5%
Central Europe	9%	13%	9%
Emerging markets	10%	5%	0%
Total EMEA	9%	10%	7%
Americas	13%	9%	7%
Asia Pacific	10%	9%	2%
Group	10%	10%	6%

We have continued to make good progress in the first four months of the second half, as our teams remain focused on driving market share gains through strong execution, digital leadership and a consistent focus on the customer.

·      We have continued to outperform the market delivering 6% like-for-like revenue growth⁽¹⁾ over the period.

o  We have started 2019 well with January like-for-like revenue growth above the average for the four-month period, after December was impacted by the timing of holidays.

o  All three regions - EMEA, the Americas and Asia Pacific - saw positive revenue trends. Within EMEA, our emerging markets operations (4% of EMEA revenue) was impacted by lower Raspberry Pi sales.

o  RS Pro, our own-brand range, continued to outperform the Group growth rate with 10%
like-for-like growth.

o  Digital revenue saw 8% like-for-like revenue growth.

·      We continue to expect stable gross margin in our base business⁽²⁾ for the full year to 31 March 2019.

·      We remain focused on initiatives to simplify and scale our business and to generate further efficiency. We are on track to deliver £4 million of savings this financial year from the second phase of the Performance Improvement Plan, with cumulative annualised savings of £12 million by March 2021.

Lindsley Ruth, Chief Executive Officer, commented:

"Despite ongoing macro-economic uncertainty, we have seen a good first four months of the second half of the year with 6% like-for-like revenue growth. We continue to have a significant market opportunity and are confident in our ability to drive share gains irrespective of the market backdrop. Good progress is being made at building a leaner and more scalable model capable of driving higher operating profit margin. We remain well positioned to make strong progress in the current financial year."

Enquiries:

David Egan	Group Finance Director	020 7239 8400
Polly Elvin	Head of Investor Relations & Corporate PR	020 7239 8427
Martin Robinson / David Allchurch	Tulchan Communications	020 7353 4200

Notes:

1.        Like-for-like change excludes the impact of acquisitions and the effects of changes in exchange rates on translation of overseas operating results, with 2018 converted at 2019 average exchange rates for the period. Revenue is also adjusted to eliminate the impact of trading days year on year.

2.        Base excludes the post-acquisition results of IESA.

3.        Our profit remains sensitive to movements in exchange rates on translation of overseas profits. Average exchange rates for the year ended 31 March 2018 for euro and US$ respectively were €1.13 and $1.33. Every 1 cent movement in the euro has a circa £1.3m impact on annual profit. Every 1 cent movement in US$ has a circa £0.4 million impact on annual profit.

4.        In the year ending 31 March 2019 we expect to see a positive impact of around £9 million on revenue from additional trading days compared with the year ended 31 March 2018.

Electrocomponents plc - Conference Call Dial in Instructions
Date:	Wednesday 6 February
UK Time:	08.00 call
Telephone number:	UK: 0800 3767922 International: [phone]
PIN:	4898138
Chairman:	Lindsley Ruth
Electrocomponents plc - Replay Dial in Instructions (available until Wednesday 20 February)
Telephone number:	[phone]
PIN:	4898138

 

END

 

 

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