Electrocomponents' revenue rises as it implements improvement plan
Electrocomponents' revenue grew as it implemented initiatives to stabilise its gross margin and reduce costs.
FTSE 250
19,799.72
16:59 23/04/24
FTSE 350
4,424.29
16:59 23/04/24
FTSE All-Share
4,378.75
17:14 23/04/24
RS Group
714.00p
17:05 23/04/24
Support Services
10,639.30
16:59 23/04/24
For the four months ended 31 January, the electronics distributor reported that sales increased 6% when compared to the previous year, with growth seen across all its main geographical regions.
In Europe revenue grew 4%, with growth of 7% and 12% in Asia Pacific and North America, respectively.
While RS Pro, the company’s own-brand business which represents 12% of total revenue, increased 5% and eCommerce, which represents 60% total revenue, was up 6%.
The company said that it is making progress on its cost initiatives and its is on track for an £18m worth of set savings in the year to March.
In December, Electrocomponents saw strong growth, as the North America and Central Europe regions benefited from weak comparatives.
Looking to 2017 financial year, the company expects to see a £10m benefit to revenue from foreign exchange rates and additional trading days, while for the 2018 financial year its expects adverse impact of about £20m on revenue from fewer trading days compared with 2017.
Chief executive Lindsley Ruth said: "We have made further good progress on our Performance Improvement Plan initiatives, which has driven faster revenue growth and improved profitability during the period.
“We are on a journey to transform both the customer experience and financial performance of this organisation and we remain on track to make good progress on both these fronts.”