Electrocomponents PLC
25 March 2003
Embargoed until 7.00am
25 March 2003
Electrocomponents plc
Trading Update
Ahead of forthcoming meetings with investors and analysts we are updating the
market on recent trading.
The Board anticipates that our profit before tax and goodwill amortisation for
the year ended 31 March 2003 will be around £100m.
As we expected when we announced our interim results in November, our markets
have continued to be weak, particularly in the manufacturing sectors. During the
year we have reduced our exposure to the sharply declining telecommunications
sector and directed our sales and marketing efforts towards sectors that are
growing. These actions have contributed to a recovery in our UK sales, which
are now running at levels approaching those of a year ago. The year-on-year
sales growth rate of our Continental European businesses has increased modestly
since the first half and Allied in the United States has also continued to grow.
Japan has enjoyed even higher sales growth than was achieved in the first half,
reflecting further success in e-Commerce. Elsewhere, sales of our Asian
businesses have been volatile, though in China sales have resumed growth
following product supply problems arising from new import regulations. Overall,
monthly sales of the Group (adjusted for exchange rates and trading days) are
now broadly level with last year.
Gross margin has shown a further small advance on the higher levels realised in
the first half. We have also continued to manage costs tightly, whilst
sustaining our strategic investments. Operating margins have consequently been
robust. Cash flow has remained strong.
Leading indicators such as Purchasing Managers Indices suggest no improvement in
our trading environment in the short term.
The full results for the current year will be announced on 29 May 2003.
Contact:
Ian Mason Group Chief Executive 01865 204000
Jeff Hewitt Deputy Chairman / Finance Director 01865 204000
This information is provided by RNS
The company news service from the London Stock Exchange
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