Electrocomponents PLC Trading Statement (8846J)
15 September 2016 - 4:01PM
UK Regulatory
TIDMECM
RNS Number : 8846J
Electrocomponents PLC
15 September 2016
ELECTROCOMPONENTS ANNOUNCES BETTER THAN EXPECTED H1 TRADING
Electrocomponents plc has today issued a trading update ahead of
publishing half-year results on 18 November 2016
During the first half, we have made excellent progress on our
initiatives to improve customer service, stabilise gross margins
and reduce costs.
-- We now expect underlying sales growth of around 2% in the
first half, with a stronger performance in Q2 driven by a return to
growth in North America in the quarter and better trading trends in
Asia Pacific (2) . Northern and Southern Europe have also continued
to see good growth across the period, which has offset some
softness in Central Europe.
-- RS Pro continues to outperform with sales growth of around 7% expected in the first half.
-- 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 Q1.
-- Cost initiatives continue to run ahead of plan and we are
confident of delivering at least GBP15m of savings during the
current financial year.
-- Given stronger than expected progress to date and some
benefit from translational foreign exchange, we now expect half
year profit before tax to be around GBP54 million (H1 2015/16:
GBP31.3 million).
Enquiries:
David Egan Group Finance Director 01865 204000
Head of Investor Relations
Polly Elvin & Corporate PR 01865 207427
David Allchurch
/
Martin Robinson Tulchan Communications 020 73534200
Notes:
1) Sales growth rates, unless otherwise stated, are adjusted for
trading days and currency movements ("underlying sales
growth/decline").
2) Our Asia Pacific hub includes our emerging market operations.
3) Our profits remain sensitive to movements in exchange rates
on translation of overseas profits. Every 1 cent movement in Euro
will have c. GBP0.6 million impact on profits. Every 1 cent
movement in US $ will have c. GBP0.3 million impact on profits. We
will see around GBP7 million benefit to profits from sterling
weakness upon translation of overseas profits during the first
half, using average year to date foreign exchange rates, we would
expect to see a benefit of closer to GBP13 million in the full
year.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLFFLFARISLIR
(END) Dow Jones Newswires
September 15, 2016 02:01 ET (06:01 GMT)
Rs (LSE:RS1)
Historical Stock Chart
From Apr 2024 to May 2024
Rs (LSE:RS1)
Historical Stock Chart
From May 2023 to May 2024