Electrocomponents profit rises amid market share gains in EMEA, Americas
By Michele Maatouk
Date: Tuesday 21 May 2019
(Sharecast News) - Electrocomponents posted a jump in full-year profit and revenue on Tuesday as it made "strong" market share gains in EMEA and the Americas.
In the year to the end of March 2019, adjusted pre-tax profit rose 23.9% to £214.5m on revenue of £1.9bn, up 10.5% on the previous year.
The acquisitions of IESA and Monition contributed £27.7m to revenue during the year. Excluding the impact of acquisitions, additional trading days and foreign exchange movements, like-for-like revenue growth came in at 8.3%. The company said all three of its geographic regions - EMEA, the Americas and Asia Pacific - saw LFL revenue growth.
The full-year dividend was lifted by 11.7% to 14.80p a share.
Chief executive officer Lindsley Ruth said: "Progress on our journey to become first choice for our customers, suppliers and employees has delivered another year of revenue growth, market share gains and improved profitability. Our opportunity remains large, our momentum is strong and we can continue to improve performance. The right investment in scalable infrastructure will deliver another step change in our progress, further differentiating customer experience, improving our efficiency and accelerating share gains.
"Therefore we are leveraging our strong financial position to accelerate capital investment in the strategic development of the group to support sustainable long-term growth, whilst continuing to focus on tightly managing our operating costs in what remains an uncertain external environment. Overall, we believe we are well positioned to make good progress in the current financial year."
As far as current trading is concerned, Electrocomponents said there has been a moderation in LFL revenue growth in the first seven weeks. April saw low single-digit LFL growth, with performance hit by the timing of holidays. However, May has started "encouragingly", with group LFL revenue growth closer to the trends seen during the final quarter of 2019.
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