Electrocomponents profits fall but new year trading positive

Distribution group Electrocomponents said full-year pre-tax profits fell 63.7% to £34.9m due to an exceptional restructuring charge of £41.9m, although it added that underlying sales growth in the first six months of the new year had risen 3.5%.

Revenues were up 2% to £1.3bn. UK revenue returned to growth with four consecutive monthly increases at the end of 2015, the first in almost three years.

“Growth in March was partly aided by the launch of Raspberry Pi 3, but even excluding this the UK was still in low single-digit growth,” the company said.

The company said the strong current trading trends continued in Europe with Northern Europe , which includes the UK, up by 3.5%; Southern Europe 8.2%; and Central Europe 3.7%. North America declined by 1.8% and Asia Pacific grew by 6.8 %.

“ We are confident of delivering £15m of savings in the year to 2017, giving an annualised net saving of at least £25m by March 2018. Work continues to identify further efficiencies. These actions mean we are well positioned to make good progress in 2017,” the company said.

Electrocomponents shares were up 1.69% to 264.4p at 1100 BST.