8th Jul 2021 09:50
(Alliance News) - Electrocomponents PLC on Thursday reported a strong first-quarter performance, with double-digit revenue growth, solidifying expectations for the group's current financial year.
For the three months to the end of June, the London-based electronic and industrial components maker's like-for-like revenue growth was 37% compared to the same period a year prior, driven by market share gains in all key markets, and strong ongoing availability.
Total revenue growth for the period was 39%, including additional trading days and a foreign exchange gain.
Regionally the Europe, Middle East & Africa segment performed well with 37% like-for-like growth, despite the UK - which accounts for around 35% of the region's revenue - being in lockdown over the period, as well as slower customs controls in Europe following Brexit.
The Americas region delivered like-for-like revenue growth of 40%, while Asia Pacific increased 31%, driven by a buoyant electronics market, Electrocomponents said.
Looking ahead, despite supply chain challenges set to slow industry growth for the rest of the financial year, Electrocomponents said it remains confident and is on-track to achieve low double-digit to mid-teens like-for-like revenue growth for the financial year ending March 31, 2022.
Consensus expectations for the year has adjusted pretax profit to come between a range of GBP241.0 million and GBP273.4 million. Profit by the same measure was GBP181.7 million, suggesting a 32% to 50% rise this year.
"Electrocomponents has delivered a very strong trading performance across all regions during Q1 due to ongoing market share gains as our offer continues to resonate with our customers, an improved market backdrop and weaker comparatives. We expect industry supply chain constraints to reduce both product availability and customer demand into the balance of the year, thereby slowing top line growth, albeit we expect to still deliver at least twice the industry growth," said Chief Executive Officer Lindsley Ruth.
Shares in Electrocomponents were 2.6% lower at 1,052.00 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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