8th Oct 2019 07:52
(Alliance News) - Electrocomponents PLC on Tuesday reported an improved performance in the first half of its current financial year as it continues to invest in strategic initiatives.
The distributor of industrial and electronics products said it expects to report 5% revenue growth in the six months to the end of September, thanks to continued "strong" performance in its Industrial division.
The Digital unit, meanwhile, performed broadly in line during the period, Electrocomponents noted.
Geographically, the FTSE 250-listed company reported further growth of 5% and market share gains in Europe, the Middle East and Africa, despite increased macro uncertainty. Turning to Americas, Electrocomponents said improvements in this region - leading to 3% revenue hrowth in the first half - were driven primarily by sales force initiatives.
Looking ahead, Electrocomponents said it still expects gross margin in the first half to be down year-on-year, by around 0.8 percentage point. The company also confirmed that it expects a more modest year-on-year margin decline in the second half, thanks to as strong growth in OKdo.
OKdo launched in April to improve Electrocomponents' offer in the single-board computing and internet of things.
"Our relentless focus on customer service, digital leadership and sales force effectiveness has been key in driving market share gains even in these more uncertain markets. We continue to invest in strategic initiatives to position the group to deliver sustained growth over the longer term," said Chief Executive Lindsley Ruth.
"We are pleased with our performance in the first half and remain on track to deliver good progress for the year," added Ruth.
Electrocomponents will publish its interim results on November 12.
By Evelina Grecenko; [email protected]
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