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The business has made a good start to the financial year. In the first quarter Group revenue grew by 14% year on year, the International business grew by 17% and the UK by 8%. Within the International business Continental Europe grew by 17%, North America by 16% and Asia Pacific by 15%. In the month of June Group revenue grew by 11% year on year, the International business grew by 12% and the UK by 8%. Within the International business Continental Europe grew by 12%, North America by 13% and Asia Pacific by 12%. We have continued to benefit from the implementation of our strategic initiatives and are gaining market share particularly from smaller distributors who cannot match our offer and service. Within the quarter electronics has grown by 16%, benefitting from the launch of 10,000 new products. We recently announced our new and groundbreaking PCB Converter for Google SketchUp, the world's most popular free 3D design tool. This allows electronics designer engineers to transfer their electronics circuit designs into a 3D CAD environment. Maintenance has grown by 13%, also benefitting from the launch of 5,000 new products. Our control and automation technologies and products promoted with our strategic supplier partners have performed particularly well. eCommerce revenue grew by around 30% with our Asia Pacific business reporting eCommerce sales growth of over 60%. We are making significant changes to our Group websites around the world which are transforming our customer online experience making the process of finding products clearer, faster and easier. eCommerce share exited the quarter at 53% of Group sales as we progress towards our target of 70% of revenues coming from eCommerce. There have been no significant changes to the Group's financial position during the period.
http://www.investegate.co.uk/Article.aspx?id=201107150700084486K
Goldman Sachs cuts target price on Electrocomponents from 337p to 309p and retains neutral recommendation.
http://www.investegate.co.uk/Article.aspx?id=201106150907494662I
Full-year results at Electrocomponents were in line, according to Peel Hunt, who raises its target price from 295p to 315p to reflect a confident outlook and expectation of continuing outperformance. The electronics and maintenance products supplier reported headline pre-tax profit ahead of the broker’s estimates for the year ended 31 March. Current trading is said to be strong, with underlying sales 16% ahead of the prior year. “Whilst there is nothing in these numbers that we feel will drive the shares materially higher in the short term, we think this remains a stock to ‘buy’,” said analyst Henry Carver.
“Electrocomponents, the electrical component distributor, has a clear strategy of expanding its product range, selling more of its products online and increasing its international footprint. (...) The company's international business now accounts for 70pc of sales – and it is showing sales growth of an impressive 25pc. Group eCommerce sales rose 37pc and now accounts for over half of revenues. The group also added a further 76,000 products to its range last year – and this will also help to boost growth. The shares are trading on a March 2011 earnings multiple of 14 times, falling to 12.5 in 2012. The shares are up 103pc since the initial tip on July 19 2009 at 140¼p, compared with a FTSE 100 up 35pc. The shares are still a buy”, says Questor.
Electrocomponents beats expectations Date: Friday 27 May 2011 LONDON (ShareCast) - Sales and profits were slightly ahead of expectations at electronics and maintenance products supplier Electrocomponents, on the back of strong sales growth in all geographic regions and online. Headline profit before tax in the year to 31 March was £114.0m, up from £74.4m the year before and ahead of market consensus of £113.5m. Revenue was 21.0% up to £1.18bn from £972.6m a year earlier, and ahead of market expectations of £1.17bn. Double digit percentage sales growth was seen in every geographic region, the group said. In the first seven weeks of the new financial year sales growth rates have remained strong at around 16% with the UK growing by 8% and the International business by 19%. Within International, Continental Europe has grown by 20%, North America by 18% and Asia Pacific by 17%. "With 70% of the group's revenues now coming from the International business we are well placed to benefit from the long term structural growth opportunity along with improving margins from operating cost leverage. As a result we are recommending an increase in our final dividend of 8%," said Ian Mason, Electrocomponents' chief executive. The final dividend takes the full-year pay-out to 11.0p, below market expectations of 11.58p, but up 4.5% from last year's payment of 11p. "Over half of our sales are now made through the web and we are continuing to enrich the online customer experience as we accelerate progress towards our target of 70% of group revenues coming from eCommerce," Mason said. As widely deduced in the broking community, the group's business in Japan was not directly affected by the country's earthquake disaster in mid-March. In the second half of March sales in Japan, which represent around 3% of the group, were at similar levels to the previous year. Gross margin eased to 49.0% from a restated 50.1% for 2010, but was ahead of broker Singer Capital Markets' forecast of 46.8% and an improvement on the first half level. Net debt contracted to £160.7m from £172.1m at the end of March 2010; Singer had predicted a much bigger easing of the debt situation, to around £147.9m.
http://www.investegate.co.uk/Article.aspx?id=201105270700103997H
Yesterday’s fourth-quarter update from electrical components distributor Electrocomponents was reassuring. The shares are trading on a March 2012 earnings multiple of 13.1 times, falling to 11.6 in 2013, which does not seem too demanding for a company that is showing strong growth despite tough comparables. Buy, says the Telegraph.
Ian Mason, Group Chief Executive, commented: "I am pleased to report that the Group's sales growth has remained strong during the final quarter of the year with sales growing by around 17% and both our International and UK businesses delivering double digit sales growth. Today around 70% of the Group's revenues are from our International business which positions us ideally to benefit from the long term structural growth opportunities in our markets with improving margins through operating cost leverage."
ELECTROCOMPONENTS PLC Trading update: Year ended 31 March 2011 Electrocomponents plc, the leading international high service distributor, has today issued a trading update for the year ended 31 March 2011, ahead of the announcement of preliminary results on 27 May 2011. Since the Group's Interim Management Statement on 4 February 2011 sales growth has remained strong despite more demanding comparatives. In the quarter ended 31 March 2011 Group sales grew by around 17% with the International business growing by around 20% and the UK by around 10%. Within the International business Europe sales grew by around 21%, North America by around 22% and Asia Pacific by around 15%. Our Electronics offer continues to be our strongest performing category. eCommerce revenue grew by around 34% and now represents around 53% of Group sales, up from 46% a year ago. Our business in Japan was not directly impacted by the earthquake in mid March and our team has worked hard and continued to operate the business and meet our customers' and suppliers' needs. Since then sales in Japan, which represent around 3% of the Group, have been at similar levels to the previous year. The Group's gross margin for the quarter ended 31 March 2011 has been in line with the first nine months of the financial year. For the full year ended 31 March 2011 sales will be in excess of £1bn for the first time in the Group's history and significant operating cost leverage will be delivered. We are continuing to invest in driving the growth in our business and we anticipate that profit before tax for the full year will be marginally above our previous expectations.
http://www.investegate.co.uk/Article.aspx?id=201104070700054547E
Electrocomponents ups profit forecast as full year sales top £1bn Date: Thursday 07 Apr 2011 LONDON (ShareCast) - Electronics and maintenance products supplier Electrocomponents expects pre-tax profits for the year to 31 March to be marginally above previous expectations after strong international sales helped drive sales above £1bn for the first time in the group’s history. The company, which distributes 500,000 products ranging from semiconductors and optoelectronics to power tools and protective clothing, said sales in the quarter to 31 March were up by about 17% from the same period the previous year. International business grew by about 20% and UK sales were up by some 10%. The Japanese business, which accounts for about 3% of the business, was not directly impacted by the recent earthquake. “Around 70% of the group's revenues are from our International business which positions us ideally to benefit from the long term structural growth opportunities in our markets with improving margins through operating cost leverage,” said chief executive Ian Mason.
Electrocomponents (ECM), the electronics parts supplier, revealed pre-tax profits for the year ended 31st January 2011 remained in line with its expectations as strong sales growth continued in the UK and abroad. The group, which sells products ranging from batteries and cables to IT books and safety equipment, reported sales growth of 19% during the four months to 31st January 2011 with the international business growing at 23% and the UK by around 11%. Shares in Electrocomponents fell back 6.5p to 260.7p.
hi RichardC, just be careful with other platforms because they pay dividends differently and change stop losses. i'll have to check yell position out, there may be some way around it. *Hoping gsls do not kick in tommorow lol*. It would be good if the positions stay open and we can ride our profits upwards with this one.
Sorry I meant max of 5000. Called IG yesterday to confirm this.
Great day on this. I hope you both fared well. Regarding Yell - I think this an excellent opportunity but IG only seems to offer a maximum number of GSL of 500 and a 5p minimum diff! Do you have another trading platform that can offer better?
good luck!
unfortunately not , a gsl is a contract that cannot be ammended , get back later the indices are going wild :)
lol i mean i got in long at 148.5 and now its at 151 but my gsl is still 5% below 148.5. which means there is a around a 6-7% gap between current price and my current gsl. i was wondering if it would cost me to edit my gsl to say 143.45 since the SP tomorrow may actually hit my current gsl which is at 140.5. i meant 'shortening' as closing the gap between my current gsl and current price.
this is why DCG has lifted from its lows from yesterday , ex-div in 25 mins..
if you short , you have to pay the divi!
im fully in now. ive got 2 orders to open left but cant seem to cancel them, i think they will just expire when market closes. mark do you know if i will get charged again for gsl if i change its position, im sitting on profit on some of the trades and was thinking of shortening the position on some of them if the market closes high. i was looking at next week and SPMG is showing 11% but ig has it as a 12.5% gsl. it might pose an oppurtunity later on this week. AIM share aswell.
...this is for next year , dividend defo 12.6 , just to double check , I phoned electrocomponents. Next year there will be a divi of 5p in January , 6p in July with an extra divi of 7.4p...
i didnt know they were rebased at first, but i picked it up in an RNS. http://www.lse.co.uk/ShareNews.asp?shareprice=ECM&ArticleCode=pej8d09d6ihs0p5&ArticleHeadline=Electrocomponents_sets_out_new_fiveyear_strategy_plan_UPDATE yell is a good one for next week and there may be a good possibility of an upside swing