Electrocomponents ahead of plan

Electrocomponents, the world's largest distributor of electronics and maintenance products, expects full year profits will be ahead of previous expectations after a strong first half.All regions saw double-digit percentage underlying sales growth in in the six months to 30 September.Group sales in total rose by 26% to £563.3m from £447.2m the year before. Underlying sales growth, which strips out currency fluctuations and extra or fewer trading days, was 24.4%, compared with a 15.3% drop-off in the first half of last year. The international operations outstripped the UK, with sales growth of 29.6% as against the UK's 13.9%. Within International, Continental Europe grew by 21%, North America by 38% and Asia Pacific by 21%.Online sales continue to form a bigger slice of the sales pie, rising to 47% from 41% at the interim stage in 2009. Management said the group is on target to hit its target of e-commerce representing 70% of total sales.Profit before tax more than doubled to £50.5m from £24.8m, though gross margin declined to 46.8% from 48.7%."Electronics was our strongest performing category, reflecting the benefits of our previous and ongoing investment and focus in this area," said Ian Mason, chief executive of Electrocomponents. "Whilst recognising the global economic uncertainties and more demanding comparatives in the second half, we believe that the outcome for the year as a whole will be ahead of our previous expectations," Mason added.The interim dividend has been maintained at 5p.