ECM.L Share News (ECM)

(Sharecast News) - Electrocomponents warned on Monday that full-year profit will be at the bottom end of market expectations as it takes a hit form the coronavirus pandemic.
The company said that in the weeks to 22 March, like-for-like group revenue growth slowed to a high single-digit decline, with revenue trends deteriorating across the week and volume levels varying considerably between markets.

Those markets where public mobility has been most restricted, such as Italy and France, have been hit the hardest, with volumes down "significantly" amid lower demand, it said. Other markets such as the UK and US, where restrictions are only just being implemented, are seeing a more modest impact on revenue at this stage.

"While we currently expect to deliver adjusted profit before tax for the year ending 31 March 2020 around the bottom end of our current market consensus range, it remains a rapidly evolving situation. It remains too early to assess the impact that the unfolding Covid-19 situation will have on trading in the year ending 31 March 2021," the company said. The current consensus range for is between ?209.2m and ?216m.

Electrocomponents said it was reviewing all discretionary expenditure, both operating and capital, and considering suitable government assistance programmes in the markets in which it operates to preserve the productive capacity of the business as far as possible.

"Electrocomponents is also assisting the fight against Covid-19 by supporting one of the UK manufacturing consortia as they seek to rapidly develop new medical ventilation equipment," it said.