Electrocomponents PLC (LON:ECM) said it expects to grow strongly this year even with a number of headwinds.
“While we remain mindful of external pressures including ongoing cost inflation and potential supply chain shortages we are confident that we are well-positioned for a rapidly changing world," said Lindsley Ruth, chief executive.
The distributor said the first seven weeks of this year had seen very strong revenue growth given weak comparatives at the start of the pandemic.
On a two-year view, like-for-like revenue growth remains robust and broadly in line with the second half of the year just ended.
By area, the Americas continues to benefit from a wider product range, Europe and Africa is holding up while Asia Pacific is strong, helped by the buoyant electronics market.
Electrocomponents said there were other external pressures as well as costs and the supply chain such as uncertainty relating to the pandemic, Brexit frictions and the translational impact from the strength of sterling, even so, the FTSE250 member said that it has a strong M&A pipeline and expectations for strong growth in 2021/22 remain unchanged.
Revenues in the year to end-March 2021 rose by 2.5% to £2bn, with profits down by 20% to £160.6mln.