ECM.L Share News (ECM)

LONDON (Alliance News) - Electrocomponents PLC Wednesday that it had seen sales growth ramp up in the four months to end-January, up 5% compared to growth of 3% in its first half.

The FTSE 250-listed electronics company said there was one less trading day in the period compared to the previous year, and as a result it expects its pretax profit for the year to be hit by around GBP2 million due to the fewer trading days.

This was primarily driven by stronger growth from its eCommerce sales, its international revenue and in North America, and improving performance in Europe which offset a weaker performance in the UK. Sales in the UK were down 2%, in line with the company's first half.

Electrocomponents said the UK market "remains tough", and it continues to drive forward with its plan to improve performance.

Gross margin was down 1.3% points in the year to date compared to the previous year, Electrocomponents said, as a results of foreign exchange and mix impacts as it sees faster growth in its lower margin products and regions. It said it has taken action to improve gross margins, and saw improvement in January.

"We are confident that our strategy will enable us to progressively grow our market share and improve our financial performance over the medium term," said Chief Executive Ian Mason in a statement.

Shares in Electrocomponents are trading down 2.7% at 205.70 pence Wednesday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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