Trading Update

RNS Number : 8852D

Electrocomponents PLC

05 February 2018

 

Electrocomponents plc today issues a trading update for the four-month period to 31 January 2018.

	Underlying revenue growth(1)
Region	Q1 to June 2017	Q2 to Sept 2017	4 months to 31 Jan 2018
Northern Europe	10%	12%	13%
Southern Europe	10%	12%	11%
Central Europe	11%	14%	17%
Total Europe	10%	13%	13%
Asia Pacific	18%	17%	22%
The Americas	16%	15%	12%
Group	13%	14%	14%

Our strong underlying revenue ⁽¹⁾ performance in H1 has continued into the first four months of H2. The market backdrop remains positive and we continue to execute well with improvements in areas such as customer experience, digital and sales effectiveness driving further market share gains.

·     In the four months to 31 January 2018, Group underlying revenue growth remained strong at 14%, with all of our five regions continuing to see double-digit underlying revenue growth.

o  Strong momentum in digital with 15% underlying revenue growth in the period reflecting success with our digital marketing strategy and improved online experience.

o  A further acceleration in underlying revenue growth at RS Pro, our own-brand business, which grew at 14% during the period (+10% in H1).

·     We remain on track to deliver stable gross margin for the full year to March 2018.

·     At the end of this financial year we will have completed the first phase of the Performance Improvement Plan and delivered cumulative annualised savings of £30 million. We are currently examining new initiatives to further simplify the way we do business and generate efficiency.

Lindsley Ruth, Chief Executive Officer, commented

"Our performance year to date has been pleasing and we are confident of delivering strong progress in the current financial year. The first phase of the Performance Improvement Plan is now complete, but we still believe we have a significant further opportunity to improve efficiency and reduce complexity allowing continued strong growth at higher operating margins. We remain excited by the opportunity for growth and improvement."

LEI: 549300KVXDURRKVW7R37

Enquiries:

David Egan	Group Finance Director	0207 239 8400
Polly Elvin	Investor Relations and Corporate PR	0207 239 8427
Martin Robinson/David Allchurch	Tulchan Communications	0207 353 4200

Notes:

1.        Revenue growth rates, unless otherwise stated, are adjusted for trading days and currency movements ("underlying revenue growth/decline").

2.        During the year to March 2018 we expect to see around a £24 million adverse impact on revenue from fewer trading days compared with FY 2017. In the year to March 2019 we expect to see a positive impact of around £9 million on revenue from additional trading days compared with FY 2018.

3.        Our profit remains sensitive to movements in exchange rates on translation of overseas profits. The average H1 exchange rates for Euro and US $ respectively were €1.14 and $1.29.  Ten months to 31 January average spot rates for Euro and US $ respectively are €1.13 and $1.31. Assuming 31 January spot rates continue for the balance of the year our average exchange rates for Euro and US $ for the year would be €1.13 and $1.32. Every 1 cent movement in the Euro will have a circa £1.2 million impact on profit. Every 1 cent movement in US $ will have a circa £0.4 million impact on profit.

Electrocomponents plc - Conference Call Dial in Instructions
Date:	Monday 5 February
UK Time:	08.00h call
Telephone number:	[phone]
PIN:	9377237
Chairman:	Lindsley Ruth
Electrocomponents plc - Replay Dial in Instructions (available until Monday 12 February)
Telephone number:	[phone]
PIN:	9377237

 

END

 

 

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