ECM.L Share News (ECM)

LONDON (Alliance News) - Electrocomponents PLC on Thursday posted a fall in pretax profit and revenue for the first half as the group was hit by the strength of sterling and said its chief executive is stepping down.

Pretax profit for the FTSE 250-listed group was down 16% to GBP37.4 million in the six months to the end of September against GBP44.6 million a year earlier, on the back of a fall in revenue to GBP616.4 million from GBP635.4 million a year earlier.

The company said the fall in pretax profit was down to fewer trading days over the period and the impact of the strength of sterling on its reported numbers.

Electrocomponents said its underlying sales growth for the period was 3%, with a 5% rise in international sales but a 2% fall in the UK.

The group said its interim dividend will be maintained at 5 pence per share.

It said group sales at the start of the second half of the year have been lower than anticipated, despite moves taken by the company to improve its performance in key markets. The group said it will continue to invest over the second half, in spite of difficult economic conditions, in order to meet its medium-term targets.

The company also said Ian Mason, who has been its CEO for thirteen years, is to step down at the end of its financial year in March 2015. Electrocomponents said it has started the search for a successor to Mason.

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

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