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Electrocomponents on target to post £100mln first-half profit

Underlying sales growth has been maintained at 10%
circuit board
The clue's in the name: The group distributes electronic components

The distribution group Electrocomponents PLC (LON:ECM) said it expects its profits to rise around 27% in the first half of its financial year.

In an update, it told investors pre-tax earnings would be around £100mln for the six months ended September 30, up from £79mln in the comparable period last year.

READ: Electrocomponents shares rise as it reports double-digit revenue growth

Underlying sales growth has been maintained at 10% in the second quarter and the business is in line to report “stable” gross margins for the year with cost savings expected to be in the order of £4mln.

IESA, bought for £88mln, delivered double-digit growth, while new business’ performance was described as “encouraging”.

“We continue to take advantage of the strong momentum in the business to increase investment to support future growth,” Electrocomponents said.

“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.

“We are also investing to further develop our capabilities in electronics and single board computing.”

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