4th Oct 2018 08:04
LONDON (Alliance News) - Electrocomponents PLC on Thursday said it had a "good" start into the second quarter of its current financial year as its profitability improved.
For the six months to the end of September, like-for-like revenue grew by 10% year-on-year, helped by 12% growth in the company's RS Pro division and 10% revenue growth seen in Digital unit.
In addition, at the end of May, Electrocomponents acquired IESA, which delivered "strong" double-digit revenue growth since integration.
The industrial & electronics products distributor sad it remains on track to deliver GBP4 million of cost savings in the current financial year following implementation of its performance improvement plan.
As a result, adjusted pretax profit is expected to increase to GBP100 million in the first-half compared to GBP79.0 million reported a year earlier.
"We continue to take advantage of the strong momentum in the business to increase investment to support future growth," the company said in the statement.
"In particular we plan to invest in Asia Pacific in both digital and customer acquisition to drive faster longer-term growth in this important region," it added.
On a regional basis, Northern Europe, Americas and Central Europe demonstrated the strongest revenue growth in the first financial half, up 11% year-on-year.
Meanwhile, Asia Pacific and Southern Europe saw modest revenue growth during the period of 9% and 7%, respectively.
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