ECM.L Share News (ECM)

LONDON (Alliance News) - Electrocomponents PLC on Wednesday said trading in its first quarter was in line with its expectations and said it had made margin improvements in the period.

The FTSE 250-listed electronic components distributor said underlying sales growth for the first quarter, in constant currencies, was 1.0%. The first half of the quarter was slower year-on-year against a strong comparator for orders in southern and central Europe. This since has improved, and Electrocomponents said trading so far in July has been encouraging.

Gross margin improved in the first quarter by 30 basis points year-on-year, driven by cost cuts made in the business and by a higher-margin revenue mix.

"We continue to pursue our initiatives to improve customer service, stabilise gross margins and create a leaner, simpler organisation. Whilst it is too early to know the impact of the Brexit vote on the UK and global economy, we remain confident of making further good progress in the current year," said Chief Executive Lindsley Ruth.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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