Electrocomponents PLC (LSE:ECM) shares were on the rise in early deals on Tuesday after the group said its "strong trading momentum" continued at the end of 2021.
The electrical and electronic components provider said external challenges look likely to intensify in the final quarter of its financial year but it nevertheless expects full-year profit will be slightly ahead of consensus estimates.
Like-for-like (LFL) revenue growth compared to a year earlier in the October – December quarter (the third quarter of the group’s financial year) eased to 21% from 26% in the preceding quarter and 37% in the quarter before that.
Overall, group revenue grew 23% from a year earlier as acquisitions added 5% and trading days 1%, offset by unhelpful foreign exchange movements.
Year-to-date LFL revenue was 28% higher than in the first nine months of the previous financial year.
Compared to the same period of pre-pandemic 2019, third-quarter revenue was up 31% on a LFL basis while for the first nine months of the current financial year revenue was up 25% on the same period of 2019.
"Our strong trading momentum continued into the third quarter, thanks to the exceptional effort of our people as we worked closely with our suppliers and customers in the challenging environment. Our product availability and breadth, service and solutions offer and omnichannel capabilities have driven further market share gains,” said Lindsley Ruth, the chief executive officer of Electrocomponents.
“As we enter Q4 we are mindful of external pressures, including the Omicron variant and supply chain constraints, although our better than expected Q3 trading means we expect full year profit to be slightly ahead of consensus estimate. We continue to take advantage of significant market share opportunities to drive further profitable growth," he added.
Shares in Electrocomponents were 4.3% higher at 1,226p in early deals, having hit 1,248p earlier.