13th Apr 2021 10:47
(Alliance News) - Electrocomponents PLC had delivered a "strong revenue performance" in its fourth quarter, the industrial and electronics products distributor said on Tuesday.
The group delivered like-for-like revenue growth of 12% in the quarter to March 2021. This improved from 10% like-for-like growth in the previous quarter.
London-based Electrocomponents said it expected full year 2021 profit to be at the top end of the consensus range following stronger end of year revenue growth.
Despite optimism the FTSE 250-listed firm said second half gross margins were likely to be lower than those seen in the first due to continuing cost pressures in freight, a regional mix effect and inventory provisions.
"We are very pleased with another strong performance in the fourth quarter," said Chief Executive Lindsley Ruth.
"The business demonstrated its resilience and agility once more, rising to the combined challenges of lockdown, Brexit and extreme weather conditions in Texas with trading not missing a beat.
"Looking forward to the year ahead, we are well positioned to deliver ongoing growth in line with expectations through continued organic and strategic investment, whilst operational efficiencies will drive margins as we continue on our Destination 2025 journey."
Electrocomponents shares were trading at 1,031.00 pence in London on Tuesday, up 1.1%. Shares are up 18% in 2021 so far.
By Will Paige; [email protected]
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