12th Nov 2019 08:34
(Alliance News) - Distributor Electrocomponents PLC boosted its interim dividend Tuesday amid rising revenue, despite profit dipping on higher costs.
For the six months ended September, pretax profit narrowed 4.3% to GBP89.0 million from GBP93.0 million the year prior. This was despite revenue rising 7.3% to GBP978.7 million from GBP911.8 million the year before.
Profit performance was hurt by rising costs during the period on the year prior.
"In recent years our executive management team of Lindsley Ruth and David Egan have brought together a strong leadership team, who are executing well on a clear strategy," Chair Peter Johnson said.
Electrocomponents proposed a 5.9 pence per share interim dividend, up 11% from the 5.3p reported the year prior.
"The first half saw good revenue growth and strong market share gains in spite of an uncertain market backdrop," Johnson added. "We will continue to drive share and actively manage our operating costs while increasing investment in strategic initiatives to position the business for the significant longer-term market opportunity."
In the first six weeks of the second half of the financial year, Electrocomponents said it "continued to outperform" with modest growth despite weakness in some of its key markets.
Shares in FTSE 250-listed Electrocomponents were 10% lower at 635.00 pence in London on Tuesday.
By Ahren Lester; [email protected]
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