Electrocomponents confident as interim profit more than doubles

(Alliance News) - Electrocomponents PLC on Thursday reported a strong performance in the first half of its current financial year and said it is confident going forward.

The London-based distributor of industrial and electronics products said revenue rose by 33% to GBP1.21 billion in the six months to September 30 from GBP908.9 million a year earlier. On a like-for-like basis, revenue increased by 31% year-on-year.

Pretax profit grew to GBP136.1 million from GBP55.6 million in the first half of financial 2021. Electrocomponents noted that it has achieved good growth in customer numbers and average order value.

The FTSE 250-listed company declared a dividend of 6.4 pence a share, up 4.9% from 6.1p paid a year ago.

"Electrocomponents has delivered a very strong performance due to our differentiated offer and a robust market driving significant revenue growth and an improved operating profit margin on a one and two-year basis," said Chief Executive Lindsley Ruth.

"With less than a one percent share of our global market and a strong proposition that is taking share, we have never been more confident of our growth opportunities despite the external challenges being faced," added Ruth.

Over the first five weeks of the second half, Electrocomponents said it has continued to see further good momentum across all regions. This is being driven by both ongoing growth in market share and strength in its underlying markets.

However, the company noted that the external environment remains "very challenging", especially within the supply chain, and the resulting product shortages, with inflation putting pressure on freight and labour costs.

Electrocomponents shares were trading 3.2% higher in London on Thursday morning at 1,174.00 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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