ECM.L Regulatory News (ECM)

Electrocomponents plc, the global distributor for engineers, today issues a trading update for the year ended 31 March 2015 ahead of publishing full-year results on 21 May 2015.

In the final quarter Group underlying sales growth(1) was 4%. International sales growth was 7% and UK sales growth was -3% (UK ex-Raspberry Pi declined by -2%). Within International, Continental Europe grew by 8%, North America grew by 6% and Asia Pacific grew by 4%. Sales growth in North America was impacted by adverse weather conditions during February and March.

The Group has continued the planned investment in its global strategy and there has been further progress in the period. eCommerce sales continue to grow faster than the Group as a whole with sales growth of 7%. Sales of our Famous For product categories, comprising our electronics and automation and control ranges, also outperformed growing by 5%, benefitting from high levels of new product introductions.

The improvement seen in the Group gross margin in January has been maintained during the rest of Q4, such that the year-on-year rate of decline in gross margin for the full year will be around 1.3%. We anticipate that Group headline profit before tax(2) for the full year will be in line with market expectations(3).

Enquiries:

Notes:

(1) Sales growth rates, unless otherwise stated, are adjusted for trading days and currency movements ("underlying sales growth/decline").There was 1 less trading day in the full year as compared to the prior year. Full-year Group headline profit before tax is expected to be impacted by around £2m due to the impact of fewer trading days (H1 2015 impact: £1m).

(2) Headline profit before tax is reported profit before tax, reorganisation costs and pension credits. 2014 full year headline profit before tax of £101m would be £6m lower if translated at average foreign exchange rates for the year ended 31 March 2015 (H1 saw an adverse impact of c. £3m from translational impacts.) If translated at current foreign exchange rates this would be reduced by a further £4m to £91m.

(3) The consensus for full year headline profit before tax is £79.3m (the consensus PBT range is £77.6m-£82.8m).

Electrocomponents plc - Conference Call Dial-in Instructions

There will be a telephone conference call today at 08.00h for analysts and investors with replay access to Thursday 9th April 2015. Dial-in instructions are set out below.