ECM.L Share News (ECM)

Electrocomponents is little changed today following an anticipated slump in half-year profits, but slower decline in revenue, prompting Ambrian to maintain 'hold' advice.The electrical parts firm reported a 15% drop in underlying revenue, or 8% on an actual basis, and 41% drop in pre-tax profit to £24.8m.It said the sales trend is improving, with a 17% year-on-year decline in the first quarter followed by a 13% slowdown in the second quarter and 8% slip in October.Ambrian says the results were broadly as expected, and reflect the operational leverage inherent in the distribution business. "That said, the recent sales data are more encouraging, and as the group lap the sharp falls of a year ago one would expect the revenue decline to narrow," continued the broker."There is clear and substantial profit recovery potential in Electrocomponents, and the share price performance has to a degree anticipated that potential. We view the shares as fairly valued given the general economic outlook."