Electrocomponents plc (LON:ECM), which supplies the world’s big engineers with around 500,000 different electronic products, said a “positive market backdrop and strong execution” were behind a stellar first-half showing.
Revenue growth was 13% for the six months as the company made share gains in all five of its regional markets. It did, however, caution that trading comparatives would get tougher in the second half.
READ: Numis hikes Electrocomponents' rating following bullish trading update, raises estimates, target
Stronger-than-expected progress to date means the company is expecting to post headline pre-tax profit of £78mln when it unveils its results next month, up strongly from the £55.1mln it achieved the year earlier.
Progress has been underpinned by the continued strong momentum of its eCommerce operation and an acceleration in growth for RS Pro, the firm’s own-brand business.
READ: Electrocomponents makes strong start to year, with acceleration in revenue growth, improved profits
“We continue to make good progress on our initiatives to stabilise gross margin and now expect to see a modest improvement in gross margin for [the first half] compared to the previous year. We remain on track to deliver stable gross margins for the full year,” Electrocomponents told investors.
At 8.15am the shares, up 38% in the year to date, had nudged a further 2% higher.