Electrocomponents forecasts slight underlying growth in final quarter

FTSE 250-listed Electrocomponents, the distributor of electronics and maintenance products, has forecasted that in the final quarter, group underlying sales growth is expected to be around 1.0 per cent.

In a pre-close trading update ahead of publishing its full-year results on May 23rd, the group reported that group eCommerce sales growth for the year ending March 31st would be around 8.0%, giving group eCommerce sales share in the quarter of around 57%.

During the second half of the year, the group said that group operating margin had responded positively to actions taken to improve gross margin and control operating costs, and had benefitted from the efficiencies resulting from the implementation of our new global organisation structure.

The group said it expected that group headline profit before tax for the full year will be in line with market expectations.

Ian Mason, Group Chief Executive Officer of Electrocomponents, commented: "Our initiatives to drive sales growth and increase operating margins led to a significant improvement in performance in the second half.

"I am pleased with the progress we have made implementing the new global organisation structure. This structure will enable the development of a truly global product offer and the formation of a single global marketing approach.

MF