(Alliance News) - Electrocomponents PLC on Tuesday reported a 11% drop in like-for-like revenue growth for first-quarter ended June 30, but said that trading trends are improving amid easing of lockdown restrictions.
The London-based distributor of industrial and electronics products added that it remains focused on protecting profit and conserving cash given the current uncertain operating environment.
"We are making good progress on our work to further simplify our operating model which we expect to drive significant savings in the medium term. We are also accelerating key strategic initiatives to drive scale and efficiency to ensure we continue to gain market share and come out of this crisis well positioned for long-term value creation," Electrocomponents said.
For the June quarter, the company's Europe, the Middle East and Africa unit saw a 13% decline in like-for-like revenue. Americas division recorded a 9% drop and Asia Pacific saw a 4% fall.
"EMEA saw the most significant improvement across the quarter with continued share gains, while Americas has seen more limited recovery to date. Asia Pacific saw continued growth in greater China and Australia offset by the impact of lockdowns in other markets," the company explained.
Electrocomponents exited the quarter with a like-for-like revenue decline of 7% in June.
The company did not see any significant adverse impact from Covid-19 on receivables collection in the June quarter and continues to have sufficient liquidity to operate under a "range of demanding scenarios".
Shares in the company were down 0.8% at 677.00 pence on Tuesday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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