Electrocomponents shares jump on upbeat trading statement

(Sharecast News) - Electrocomponents shares jumped on Wednesday as the company said it expected full year profits to be ahead of consensus estimates after a strong performance in the last nine weeks.

Trading over the nine weeks to March 4 had seen like-for-like revenue growth of 22%, despite tougher comparatives.

The company said it expected profit to be at the upper end of a company-compiled consensus for the year to March 31 of adjusted profit before tax of £275.4m - £290.9m.

"We are actively monitoring the potential impact of the increasing economic and political uncertainties on our markets, which may increase trading volatility," Electrocomponents said in a trading statement.

"Despite a slightly slower start to the calendar year, our momentum has built leading to a strong performance over the last nine weeks. Consequently, our revenue and adjusted operating profit margin are tracking ahead of expectations."

"Our continued investment in inventory has offset industry supply chain shortages while the strength of our model has enabled us to manage the challenges caused by the pandemic better than expected."