5th Apr 2016 06:48
LONDON (Alliance News) - Electrocomponents PLC on Tuesday said its headline pretax profit for its financial year that ended in March will hit the top end of market expectations after good sales in the UK and Europe.
The FTSE 250-listed electronics distributor said headline pretax profit, which removes pension and restructuring costs, will be at the top end of market expectations. For the year to the end of March 2015, headline pretax profit was GBP80.1 million.
Electrocomponents said revenue growth in its UK business returned in the fourth quarter, up 4.0% year-on-year, to leave the full year flat. Europe revenue growth, in constant currencies, was 8.0% in the fourth quarter and 11% for the full year.
These improvements were partially offset for the company by declines in North America, where sales fell 4.0% in constant currencies in the fourth quarter and 2.0% for the full year, and Asia Pacific, where fourth quarter sales declined 8.0%, leaving full-year sales down 2.0%.
Overall, Electrocomponents said revenue in constant currencies grew 2.0% in the fourth quarter and will be up around 3.0% for the full year.
Electrocomponents said its gross margin continued to stabilise in the fourth quarter and will be down around 1 percentage point for the full year. The group added it is on track to meet its target of taking GBP25.0 million in annual costs out of the business.
By Sam Unsted; [email protected]; @SamUAtAlliance
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