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Trading statements

Electrocomponents sees growth in all regions

03 October 2017 07:14

Electrocomponents saw revenue growth of 13% in the first half with all five regions continuing to see double-digit underlying revenue growth.

The group said its good start in Q1 continued into Q2, as strong execution and a positive market backdrop combined to drive faster revenue growth and market share gains across all five of its regions.

But it said trading comparatives would toughen in H2 with underlying revenue growth trends in the year to March 2017 of 2.1% in H1 and 7.5% in H2.

An update said: 'We continue to make good progress on our initiatives to stabilise gross margin and now expect to see a modest improvement in gross margin for H1 compared to the previous year.

'We remain on track to deliver stable gross margins for the full year. 'We have invested in inventory during H1 to improve stock availability and support faster revenue growth and, as such, we expect to see a higher than normal weighting of cash flow to the second half of our year to March 2018. 'Given stronger than expected progress to date and some benefit from translational foreign exchange we now expect half year headline profit before tax to be around £78m (H1 2017: £55.1m). 'We are taking advantage of the strong momentum in the business to increase investment in areas such as innovation and digital in H2 to support future growth. Consequently, we now expect to see a more even distribution of profits between H1 and H2 in the current financial year.'

Story provided by StockMarketWire.com

Related Company: ECM

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