Shares in electrical parts distributor Electrocomponents plc (LON:ECM) sparked more than 11% after it predicted higher-than-expected profits.
The stock rose 34.7p to 336.5p as Electrocomponents forecast first-half profit of about £54mln versus £31.3mln a year ago.
Electrocomponents also upped its sales forecasts due to a return to growth in North America and better trading in Asia Pacific.
Sales in northern and southern Europe also continued to grow well across the period, which offset some softness in central Europe.
The group said it now expected underlying first-half sales to rise about 2%.
Electrocomponents has been trying to revive its fortunes amid lacklustre trading which sparked market talk of tie-ups with rivals such as Premier Farnell.
It said it expected to save at least £15mln this financial year as cost-cuts continue to run ahead of plan.
The group added: "We continue to make good progress on our initiatives to stabilise the gross margin. We now expect the improvement in gross margins for the first half to be similar to that in the first quarter."
Meanwhile, Premier Farnell plc (LON:PFL), which is the target of a takeover offer from Avnet Bidco, said revenue rose 6.1% to £489.3mln but adjusted pre-tax profit fell to £23.3mln from £26.2mln a year ago.
Strong Asia-Pacific growth helped to offset declines in the Americas and the UK, although continental Europe did well.