23 Jul 2015 07:00
ELECTROCOMPONENTS PLC
First Quarter Trading Statement
Electrocomponents plc has today issued a trading statement for its first quarter ended 30 June 2015 ahead of its Annual General Meeting.
In the first quarter Group underlying sales growth (1) increased to 5%. Our International business, which comprises over 70% of Group revenues grew by 7% and the UK declined by 1%. Within International, Continental Europe grew by 13%, North America grew by 3% and Asia Pacific was flat during the period. July has started more slowly.
eCommerce sales have accelerated in the quarter, benefitting from the considerable work that has gone into improving the online user experience, particularly in search and online content. In the first quarter eCommerce sales growth was 10%, resulting in eCommerce comprising 60% of Group revenues during the quarter (Year to 31 March 2015: 59%).
Gross margin in the quarter was 1.7% points below the prior-year period. This reflects the negative impact of foreign exchange, price and discounting impacts, and mix impacts due to the faster growth of our lower margin products. We are currently implementing actions on pricing, purchasing and discounts which along with the easier comparatives in the second half of the year should benefit the full year gross margin.
Lindsley Ruth, Group Chief Executive, commented:
"In the first quarter, Group underlying sales growth rose to 5%. Europe is performing well with good double digit growth and in North America we have seen slower growth against a market backdrop of weakening US manufacturing output. There is still much to do to reinvigorate growth in the UK and Asia Pacific and to arrest the decline in gross margin. Actions are underway to address underperformance and I look forward to sharing my plans on how to deliver a sustained improvement in financial performance with the half-year results in November."
Lindsley Ruth | Group Chief Executive | 01865 204000 |
Simon Boddie | Group Finance Director | 01865 204000 |
Polly Elvin | Head of Investor Relations & Corporate PR | 01865 207427 |
David Allchurch / Martin Robinson | Tulchan Communications | 020 73534200 |
Notes:
(1) Sales growth rates, unless otherwise stated, are adjusted for trading days and currency movements ("underlying sales growth/decline").
(2) Reported 2015 full-year headline profit before tax of £80.1m would be £7m lower if translated at foreign exchange rates at 30 June 2015.
Electrocomponents plc - Conference Call Dial in Instructions | |
Date: | Thursday 23 July 2015 |
UK Time: | 07.45h call |
Telephone number: | +44 (0) 1452 55 55 66 |
PIN: | 70368990 |
Chairman: | Lindsley Ruth |
Electrocomponents plc - Replay Dial in Instructions (available until 1 August 2015) | |
Telephone number: | +44 (0) 1452 55 00 00 |
PIN: | 70368990# |