(Alliance News) - Electrocomponents PLC on Wednesday said it expects annual revenue and adjusted operating profit margin to be ahead of market estimates, due to a strong trading performance.
Shares in the FTSE-100 constituent were up 8.3% at 939.50 pence in London on Wednesday morning.
Electrocomponents is a London-based company that supplies industrial and electronic products and works with over 2,500 suppliers. Its customers are designers, builders and maintainers of industrial equipment and operations.
In the nine weeks to March 4, revenue grew 22% on a like-for-like basis compared to a year ago. In the financial year to date - the company's financial year ends on March 31 - revenue is up 25%, also on a like-for-like basis.
Revenue in industrial product ranges, which represent around 75% of total revenue, also grew by 22% like-for-likein the recent nine weeks.
In Europe, the Middle East and Africa, Electrocomponents' revenue grew by 17% in the period to March 4 and by 21% year to date on a like-for-like basis. The company credited this to growing customer numbers, a deeper product offer and a stronger sales focus.
The company recorded the highest like-for-like revenue climb in the Americas, hitting 32% growth in the recent period on a year ago and 34% year to date. It attributed this to investment over recent years that led to a higher digital share and greater product depth and availability in the area.
The Asia Pacific business grew 24% in the recent nine weeks and 28% in the year to date, Electrocomponents said, supported by a sharper sales focus, which drove strong share growth within the industrial components market.
As a result of its year to date progress, Electrocomponents expects revenue and adjusted operating profit margin for the financial year ending March 31, to be ahead of the top end of the current consensus range.
The top end of the range for revenue is GBP2.54 billion, according to a company-compiled consensus. This represents revenue growth of at least 27% compared to revenue of GBP2.00 billion recorded in financial 2021.
"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. This has been achieved despite the challenging environment and toughening comparatives, a testament to the hard work and dedication of our people," Chief Executive Lindsey Ruth commented.
"We are mindful of the increasing geopolitical uncertainties and, although we do not have operations in Ukraine or Russia, our thoughts are with everyone whose lives have been affected by these events. Despite these evolving external challenges, our ability to operate against headwinds and outperform our markets reinforces our confidence in our growth opportunities."
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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