Electrocomponents defers dividend as current year sales fall 14%

(Sharecast News) - Industrial products distributor Electrocomponents deferred its final dividend until it had a clearer view of the coronavirus pandemic's impact as sales fell 14% in the first eight weeks of the current year.
The company said it would look at paying an extra interim dividend when it reports half-year results in November. Full year pre-tax profits rose 2.3% to £199.6m as revenue rose 2.2% to £1.95bn.

"At a group level the rate of revenue decline moderated slightly during May as lockdown restrictions began to ease in some of our key markets," the company said on Tuesday.

Despite the fall in current year demand, Electrocomponents reported an almost double-digit growth in website visits, with new online customer numbers also increasing.

"We are accelerating initiatives to drive further differentiation in our digital proposition to convert and retain these new customers," it said.

Capital expenditure plans for 2021 were reduced to £60m from £80m as the company slowed some less time sensitive projects while accelerating those which would deliver near-term returns.