5th Jul 2018 09:00
LONDON (Alliance News) - Electrocomponents PLC said Thursday that its first quarter revenue growth was steady when compared to its previous quarter as various market changes cancelled each other out.
The electronics distributor, which trades through its RS Components and Allied Electronics & Automation brands, recorded 10% like-for-like revenue growth for its first quarter ended June 30. This compares with 10% like for like growth recorded in the fourth quarter of 2018 financial year.
Electrocomponents' like for like total revenue growth in Europe was 9% in both its first and fourth quarters. In terms of change, the largest movements were seen in Asia Pacific and the Americas.
First quarter like for like revenue growth fell by five percentage points in the Asia Pacific region to 10% from 15% but grew 3 percentage points to 13% in the Americas.
The company said growth in the Americas was driven by its market share gains within strong underlying market.
Overall, Electrocomponents is confident that it will deliver a stable gross margin in its base business, which excludes the results of its newly acquired IESA business. It is currently implementing a savings plan that it hopes will achieve GBP12 million of annualised cumulative savings by March 2021.
"We are making good progress on our initiatives to further simplify the way we operate in order to drive a more efficient and scalable operating model," said Electrocomponents Chief Executive Officer Lindsley Ruth.
"All this means we are confident of delivering further strong progress in the current financial year," Ruth added.
Shares in Electrocomponents were up 3.3% at 752.00 pence on Thursday.
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