(Sharecast News) - Electronic parts distributor Electrocomponents lifted annual guidance after reporting interim trading ahead of expectations, but said supply chain issues would persist.
Like-for-like revenue For the six months to September 30 rose 31% year on year and 22% higher compared with 2019 before the Covid pandemic struck. Full-year revenue growth and adjusted operating profit margin were forecast to be slightly ahead of previous guidance.
"Looking forward, we face much tougher comparatives and a number of external challenges, including supply chain shortages, which are affecting industrial production and increasing cost pressures. Hence, we expect our full year profit to be more weighted to the first half than in previous years," the company said on Friday.
"We continue to experience higher outbound freight charges, costs to serve and labour inflation which are showing no signs of abating."
Chief executive Lindsley Ruth said trading has remained very strong across all regions as the firm worked with suppliers to ensure product availability, adding that delivery and service "remain robust, which has driven further growth in both customers and average order value".
"This has led to our financial performance to date being stronger than expected," he said.
3 May 2022 16:41
IN BRIEF: Electrocomponents name change to RS Group confirmed
Electrocomponents PLC - London-based industrial and electronic products distributor - Changes its name to RS Group PLC. The company previously announced its intention to change name on March 30. Adds its ISIN will remain unchanged and the change of name will not affect any shareholder rights.
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