Electrocomponents FY profits sparked by currency boost, market share growth

Distribution firm Electrocomponents said full year reported profit before tax quadrupled to £127.1m as it profited from a currency tailwinds and made market share gains in Northern Europe and North America.

Revenue rose to £1.5bn from £1.3bn and the full year dividend was lifted 4.7% to 12.3p.

The company said reported revenue and profit was boosted by £141m from currency movements and £10m due to extra trading days.

“In 2018 we expect to see some of this benefit reverse, as we will have fewer trading days, which we anticipate will have a negative impact on revenue of around £20m,” it said in a statement.

The company said it had taken a “major step forward” in Asia Pacific with a return to revenue growth in the second half and full-year loss halved.

It added that £18m of savings were delivered in 2017 and was on track for its £30m cumulative annualised target by March 2018.

“We have made an encouraging start to 2018, with continued strong underlying revenue momentum in the first seven weeks of the year. All our hubs are delivering revenue growth, with North America continuing to experience strong double-digit underlying revenue growth,” Electrocomponents said.

“We are using current growth momentum to accelerate investment in talent and innovation to drive faster growth in the business in the medium term.”

“We remain on track to deliver a further £5m of cost savings during the current financial year.”