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The Chief Executive Officer (CEO) of FTSE 250 electronics and maintenance products distributor Electrocomponents has, alongside the group's Finance Director, sold off a number of shares awarded under the company's deferred bonus plan. CEO Ian Mason earned himself £100,554 after selling 48,460 at 207.50p each, while Finance Director Simon Boddie ditched 32,307 for 207.50p each, pocketing a total of £67,037. Under the plan Mason was awarded 93,005 shares and Boddie was given 62,003, all of which full vested on Monday. The company's shares are currently trading down 22%, equal to 61.30p, compared to a year ago, although they have risen 9.0%,, or 17.80p in the last month. At the end of May the company reported in its final results that the current financial year did not get off to a particularly good start, with the International business declining 2.0%, although the UK grew by 4.0%.
The Chief Executive Officer (CEO) of FTSE 250 electronics and maintenance products distributor Electrocomponents has, alongside the group's Finance Director, sold off a number of shares awarded under the company's deferred bonus plan. CEO Ian Mason earned himself £100,554 after selling 48,460 at 207.50p each, while Finance Director Simon Boddie ditched 32,307 for 207.50p each, pocketing a total of £67,037. Under the plan Mason was awarded 93,005 shares and Boddie was given 62,003, all of which full vested on Monday.
Tempus in the Times looks at Electrocomponents which supplies a vast range of electrical components at a days notice. The nature of the business means it has zero visibility on forward earnings but the growth curve is flattening in response to the downturn and that may force a lowering of price and a reduction in margin. Tempus concludes the stock is a leave on current uncertainties
ELECTROCOMPONENTS WINS THE QUEEN'S AWARD FOR ENTERPRISE OXFORD, England, April 21, 2012 /PRNewswire/ -- Award presented forcontinuous achievement in international trade Electrocomponents plc (LSE:ECM), the world's leading high service distributor of electronics and maintenance products, has won the Queen's Award for Enterprise, one of Britain's most coveted business awards. The award was conferred today (The Queen's birthday) for the company's continuous achievement in international trade, which has resulted in substantial overseas earnings, growth and commercial success. The Queen's Awards celebrate the very best of British enterprise. They are presented on the recommendation of the Prime Minister and with Her Majesty The Queen's approval to the most successful industrial and commercial companies and to those enterprises which have made a significant contribution to Britain's national prosperity. Electrocomponents has continuously invested in international expansion, new product introductions, improving its global supply chain capability and eCommerce effectiveness. This has enabled it to take market share from its competitors, who cannot match its product offering and customer service, and has made it the global market leader. Since 2006 Electrocomponents has successfully expanded into 10 new overseas markets, most notably within Eastern Europe and South East Asia. Read the full story here: http://informationweek.in/prnews/12-04-21/Electrocomponents_Wins_the_Queen_s_Award_for_Enterprise.aspx Company Overview: http://www.youtube.com/watch?v=YKs-IsNsU0g P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
Electrocomponents issued a reassuring trading update on Friday. Growth in the final quarter of last year was not quite as bad as it could have been. For the full year the electrical product distributor expects sales will grow by 7% to a record £1.2bn. Its international sales should rise by 9% and the UK by 3%. However, the rate of sales growth fell to just 1% in the final quarter of the year – a slowdown from 5% in the previous three months. The group saw strong sales growth in 2010 so comparisons are tough. However, sales are now 15% higher than they were before the financial crisis, which implies the company is grabbing market share. The shares are trading on a March 2012 earnings multiple of 13.2 times, falling to 13 next year. They are supported by their chunky 4.6% yield rising to 4.8% next year. “The rating on the shares is remains hold,” says The Sunday Telegraph´s Questor team.
The 225p target equates to the stock trading at 12 times next year's (ending 2013) earnings. Currently, the shares are trading at a multiple of 13.5, the broker said. Carver believes that the current price "is assuming a stronger performance in Europe than the current outlook suggests"
Peel Hunt has raised its target price for electrical components distributor Electrocomponents but maintained its sell rating on the stock, saying that the uncertain outlook does not warrant the current valuation. "We are raising our price target to 225p [from 180p] on the basis that, whilst the outlook is uncertain it has not deteriorated significantly since H2 last year. Also, the market has re-rated materially since then," said analyst Henry Carver
Analyst Briefing Electrocomponents, the world's leading high service distributor of electronics and maintenance products, is today hosting a presentation for analysts on its businesses in Asia Pacific, with a particular focus on its operation in China. The Group's Asia Pacific business is the region's market leader, operating across twelve countries. It has significant growth potential and the opportunity to be the fastest growing region in the Group in the coming years. No material new information will be disclosed. Copies of the presentations will be available at http://www.electrocomponents.com/investor-centre after the meeting.
In the Telegraph, Questor sizes up Electrocomponents after having a word with the boss Ian Mason. The company is tied to the industrial cycle as orders go up for the electronic components it distributes when the global economy improves.
Ian Mason, Group Chief Executive, commented: "The Group is performing well in the current macroeconomic environment. The implementation of our electronics, maintenance and eCommerce initiatives is driving business performance, with all regions delivering revenue growth. Our multichannel approach, with eCommerce at the heart of our business, has driven 16% eCommerce growth and channel share of 55%. We are focused on implementing our strategic initiatives and, being mindful of economic conditions, we are continuing to keep tight control of costs. We have a well invested global infrastructure with market leading positions and a strong balance sheet, and we are well positioned to take advantage of the structural growth opportunities available to us internationally in highly fragmented markets."
CONTINUING GROWTH The Group has performed well against strong comparatives during the four months to 31 January 2012. Group revenue grew by 4% year on year, with the International business growing by 5% and the UK by 1%. Within the International business Continental Europe grew by 5%, North America by 5% and Asia Pacific by 7%. In January Group revenue grew by around 1%. The International business, which represents over 70% of Group sales, grew by around 1% and the UK was flat. Our North American business successfully went live with a new SAP-based ERP system in January, similar to that already used across our European businesses, and the system has performed well to date. The implementation of our strategy is delivering good results. § We continue to gain share internationally particularly from our smaller competitors who are not able to match our broad product range, high customer service and eCommerce capability. § We are continuing to expand our service and product offers in China. § We are benefitting from our balanced product offering, with electronics and maintenance delivering around 4% and 5% sales growth respectively. § Our enhanced RS websites and increasing spend on search engine marketing have contributed to strong eCommerce revenue growth of around 16%. eCommerce sales represented around 55% of Group sales in the period, up from 49% in the prior year. The Group has a strong balance sheet and there have been no significant changes to the Group's financial position during the period.
http://www.investegate.co.uk/Article.aspx?id=201202030700097276W
t/o up 20% to £1.2B profits up 50% to £114M with a new streamlined internet services to replace the old catalogues. Dont really understand why its not on the up as already proved it is resistant to any recession?
Apologies - this is the rest of the broker note per last post The broker notes that while the stock has fallen 12% over the last year, a sharper operational focus meant that the company outperformed its closest peer Premier Farnell, which fell 38%.
Singer Capital Markets has reiterated its fair value rating and 284p target for Electrocomponents but has highlighted some positives at the electronic components distributor, such as its cheap valuation.
Has anyone heard of this company?
It's nearly two years since the Electrocomponents share price has been this low, says the Investment Column in the Independent. The aptly named distributor of electrical components has been under the cosh because of worries about the world economy. Taken as a whole, the first half numbers look fine and dandy: group revenue grew by 11 per cent year on year, with the international business up 14 per cent while the UK (surprise surprise) managed 5 per cent. However, that growth is slowing: in the second quarter group revenue grew by only 8 per cent year on year, the international business by 11 per cent and the UK by only 2 per cent. If you want yield there are better, more defensive places to get it. And we don't see sentiment towards the company improving any time soon, as the market focuses on the economic outlook. Sell, the Independent recommends.
Ian Mason, Group Chief Executive, commented: "The business has had a strong first half of the financial year with 11% Group revenue growth and 27% eCommerce growth. Electrocomponents is the leading high service distributor globally in a large, growing and highly fragmented marketplace. We have continued to gain market share particularly from smaller distributors who cannot match our offer and service. We have a strong balance sheet and are continuing to invest in the business with further electronics product introductions, improving our maintenance offer across Continental Europe and the UK and significant enhancements to our websites. While we are mindful of economic conditions and have previously demonstrated our ability to react swiftly to changes in demand, the business is continuing to deliver year on year sales growth."
Trading update Electrocomponents plc, the world's leading high service distributor of electronics and maintenance products, has today issued a trading update for the six months ended 30 September 2011, ahead of the announcement of half year results on 14 November 2011. The business has had a strong first half of the financial year. In the first half Group revenue grew by 11% year on year, the International business grew by 14% and the UK by 5%. Within the International business Continental Europe grew by 15%, North America by 14% and Asia Pacific by 12%. In the second quarter Group revenue grew by 8% year on year, the International business grew by 11% and the UK by 2%. Within the International business Continental Europe grew by 12%, North America by 11% and Asia Pacific by 8%. In September Group revenue grew by around 5%, the International business, which represents 70% of Group sales, grew by around 7% and the UK declined by around 1%. We have continued to benefit from the implementation of our strategic initiatives. We have launched a further 20,000 new market leading electronics products and are building a larger and common maintenance offer across Continental Europe and the UK. During the half year the growth rates of our electronics and maintenance offers have converged. eCommerce revenue grew by around 27% and represents around 54% of Group sales at the exit of the half year. We recently completed a number of significant enhancements to our websites making the process of finding products clearer, faster and easier. Customer feedback has been encouraging. The Group's gross margin is at a similar level to the first half last year. The Group has completed a bank refinancing with a £210m multicurrency committed bank facility obtained from a group of seven banks replacing the existing main facility. The new financing has a maturity of 30 November 2015 with comparable covenants to the former facility.
http://www.investegate.co.uk/Article.aspx?id=201110030700263672P
This would create enormous cost savings and synergies, and the share price of PFL is becoming surely more and more attractive to a predator?
Electrocomponents is the world's largest distributor of electronic, electrical and industrial products. It operates in 32 countries, with distributors in a further 37. Electrocomponents’s latest trading update was awaited with some nervousness after disappointment from one of its principal competitors. However, this proved unduly cautious and the statement was reassuring. Buy, says the Scotsman
Electrocomponents' shares have lost one-fifth of their value since Questor in the Telegraph last said buy – but these falls look overdone, Questor believes. Friday’s statement was reassuring. The main cause of the recent slide was some dire results from Electro’s peer Premier Farnell. Sales growth has seen something of a slowdown at Electrocomponents too – but nothing to get spooked about – especially as there were strong comparators. It is also important to note that, since Questor last gave an update on the company, consensus for revenues, profits, earnings per share and the dividend have all moved materially higher. The shares are also yielding a safe 5.2%, so this should support any downside. First tipped on July 19 2009 at 140½p and trading on a current-year earnings multiple of 11.3, falling to 10.1, the shares remain a buy at 238.7p, the Sunday Telegraph says.
Electrocomponents' shares have lost one-fifth of their value since Questor in the Telegraph last said buy – but these falls look overdone, Questor believes. Friday’s statement was reassuring. The main cause of the recent slide was some dire results from Electro’s peer Premier Farnell. Sales growth has seen something of a slowdown at Electrocomponents too – but nothing to get spooked about – especially as there were strong comparators. As an analyst at Seymour Pierce said on Friday: “If proof were needed that the recent problems at Premier Farnell were of their own making and unrelated to deterioration in market conditions, it was provided in today’s trading update from Electrocomponents.”
Ian Mason, Group Chief Executive, commented: "We have made a good start to the financial year with 14% revenue growth and 30% eCommerce growth. With more than half our revenue now on the web we are well on our way to becoming an eCommerce centred business. Our strategy is delivering growth across all regions and we are continuing to invest in the business. We are strengthening our electronics range while driving our market leading offer for maintenance engineers. Our focus on innovation to improve the experience of our customers, particularly through the web, is underpinning our revenue growth. While we have made a good start to the year, we are also mindful of economic conditions. We will continue to implement our strategy and drive long-term structural growth."