ECM.L Regulatory News (ECM)

20 Sep 2005 07:03

Electrocomponents PLC20 September 2005 Embargoed until 7.00am 20 September 2005 Electrocomponents plc - Trading Update Electrocomponents plc, the major international high-service distributor ofelectronic, electrical and industrial supplies, is today giving a trading updateahead of its results for the 6 months ended 30 September 2005. The Board expects that Group profit before tax, and one-off costs for the 6months ending 30 September 2005 will be around 30% below last year. Up to the end of August, Group sales (adjusted for exchange rates and tradingdays) followed the previously announced pattern with sales growth of around 3%.However, in the first two weeks of September, UK sales have declined from -3% inthe period to the end of August, to -6% in September. There has been continuedstrong growth in North America, Asia and the smaller European markets. Sales inFrance, Germany and Italy continue to show some recovery. Year-on-year gross margins have declined by around 1.5% points as a result ofrealigning selling prices, targeted customer discounts and product mix. Thisdecline has occurred throughout most of the Group but the biggest impact remainsin the UK. In the UK, one-off costs of around £1.5m have been incurred in this half-year,which will have an annualised benefit of around £2m. UK EBS system testing is progressing well and we are increasingly confident of asuccessful implementation in the last quarter of this financial year. To achievethis we have increased the level of internal and external support, which hasresulted in the forecast revenue costs increasing from £18m to £25m in thisfinancial year. The Board's view of the medium term prospects for the Group has not changedwhich supports the maintained level of dividend for the next three years. The full results for the six months will be announced on 8 November 2005.International Financial Reporting Standards will be used in reporting theseresults. There will be a telephone conference call today at 09.00am for analysts andinvestors. Dial-in instructions are set out below. Enquiries: Ian Mason Group Chief Executive 01865 204000Simon Boddie Group Finance Director 01865 204000Diana Soltmann Flagship Consulting 020 7886 8440 Details of telephone dial in instructions: Date: 20 September 2005UK Time: 08:50am for 09:00 am UK Local Call Dial-In: 0845 140 0165UK Free Call Dial In: 0800 953 0936Europe & International Dial-In: +44 (0) 1452 568 061Canada Toll Free Dial In: 18665 137 175USA Toll Free Dial-In: 1866 224 2972Quote Reference Number: 9739195 Chairman: Ian Mason Electrocomponents plc Safe Harbour Statement: This announcement contains certain statements, statistics and projections thatare or may be forward-looking. The accuracy and completeness of all suchstatements, including, without limitation, statements regarding the futurefinancial position, strategy, projected costs, plans and objectives for themanagement of future operations of Electrocomponents plc and its subsidiaries isnot warranted or guaranteed. These statements typically contain words such as"intends", "expects", "anticipates", "estimates" and words of similar import. Bytheir nature, forward-looking statements involve risk and uncertainty becausethey relate to events and depend on circumstances that will occur in the future.Although Electrocomponents plc believes that the expectations reflected in suchstatements are reasonable, no assurance can be given that such expectations willprove to be correct. There are a number of factors, many of which are beyond thecontrol of the Electrocomponents plc, which could cause actual results anddevelopments to differ materially from those expressed or implied by suchforward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange