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Trading statements

Electrocomponents ahead of forecasts

06 April 2017 07:28

Electrocomponents said it expected results for the year ended 31 March to be ahead of its previous forecasts as it continued to make strong progress in the final quarter.

It said Q4 revenue growth accelerated to 8% leading to revenue growth of 5% for the full year.

It said: "Our end markets remain strong and the business is executing well, as we continue to improve our go-to-market approach and sales effectiveness. Revenues in the quarter have also benefited from a more favourable competitive environment in the quarter.

"The acceleration in Q4 revenue growth has been driven by a strong recovery in growth in North America and Asia Pacific, and continued robust growth in Europe.

"RS Pro, our own-brand business, which accounts for around 12% of revenues saw revenue growth of around 5% in Q4.

"eCommerce, which represents around 60% of revenues saw revenue growth of around 8% in Q4, broadly in line with the Group growth rate."

Electrocomponents added: "We expect a similar year-on-year percentage point improvement in the full-year gross margin to that seen in the first-half gross margin.

"During the final quarter our own actions on price and discount discipline and foreign exchange benefits have offset an unfavourable geographic mix, which relates to faster growth in our lower gross margin North American hub."

Story provided by StockMarketWire.com

Related Company: ECM

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