Preliminary Statement


30/05/2007

Electrocomponents plc, the leading international high service distributor of electronic, electrical and industrial supplies, today announces its results for the year ended 31 March 2007.

SUMMARY RESULTS

 

2007

2006
Revenue £877.5m £828.5m
Profit before tax – headline £84.4m £72.8m
Profit before tax – reported £85.2m £65.1m
Earnings per share – headline 12.8p 11.2p
Earnings per share – reported 12.9p 10.0p
Dividend per share 18.4p 18.4p

HIGHLIGHTS OF THE YEAR

  • Continued strong revenue growth in our International Business of 15% with all regions showing higher growth year on year.
  • The UK growing revenue by 2% with the new strategy delivering results.
  • e-Commerce growing by 23% and now accounting for 28% of Group revenue.
  • The implementation of our EEM strategy is contributing to sales growth.
  • Gross margin stabilising during the year with strong gross profit growth across the regions.
  • Significant operating cost leverage in the International business and Processes.
  • Annualised cost reductions of £7.6m now achieved.
  • The roll out of EBS is now complete.
  • Headline profit before tax growth of 16%.
  • Dividend maintained at 18.4p.

THE PLAN FOR THE COMING YEAR

  • Continued implementation of our strategy to drive sales growth.
  • Supporting the recent EBS roll outs and realising the benefits of an integrated system.
  • Continuing to develop our e-Commerce channel.
  • Completing the Allied warehouse move successfully.
  • Further action to reduce the Group’s cost base.

HELMUT MAMSCH, CHAIRMAN, COMMENTED:

"This has been a year of good progress with increased sales and profits.  All three pillars of the strategy are delivering: EEM is contributing to sales growth, the roll out of EBS in Europe is now complete and 75% of the targeted cost reductions have been delivered."

Enquiries:

Helmut Mamsch, Chairman Electrocomponents plc 0207 567 8000*
Ian Mason, Group Chief Executive Electrocomponents plc 0207 567 8000*
Simon Boddie, Group Finance Director Electrocomponents plc 0207 567 8000*
Diana Soltmann Flagship Consulting Ltd 0207 886 8440

* Available to 15:00 on 30 May 2007, thereafter 01865 204000

The results and presentation to analysts are published on the corporate website at www.electrocomponents.com

Definitions of terms:

In order to reflect underlying business performance, comparisons of revenue between periods have been adjusted for exchange rates and the number of trading days. Changes in profit, cash flow, debt and share related measures such as earnings per share are at reported exchange rates.

Enterprise Business System (EBS):  In order to make clear the costs of the EBS project and the underlying performance of the business, EBS costs have been disclosed separately. Therefore, unless explicitly stated, measures based on operating costs, contribution and process costs exclude EBS.

Headline profit: A profit of £0.8m (2006: charge £7.7m) was incurred in the year for items excluded from headline profit. Details of the items are given below the Income Statement. Key performance measures such as return on sales, EBITDA and ROCE use headline profit figures.

Safe Harbour:

Our preliminary statement contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Electrocomponents plc and its subsidiaries is not warranted or guaranteed. These statements typically contain words such as "intends", "expects", "anticipates", "estimates" and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Although Electrocomponents plc believes that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors, which may be beyond the control of Electrocomponents plc, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be listed, Electrocomponents plc has no intention or obligation to update forward-looking statements contained herein.

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