Half-yearly Financial Report


09/11/2007

Electrocomponents plc, the major international high service distributor of electronic, electrical and industrial supplies, today announces its results for the half year ended 30 September 2007.

SUMMARY RESULTS

H1 2007/08 H1 2006/07
Revenue £443.8m £422.4m
Profit before tax – headline £40.4m £36.3m
Profit before tax – reported £39.4m £35.6m
Earnings per share - headline 6.1p 5.5p
Earnings per share - basic 6.0p 5.4p
Interim dividend per share 5.8p 5.8p
Growth in headline profit before tax at constant foreign exchange 13% 4%

HIGHLIGHTS OF THE FIRST HALF

  • Group revenue growth of 7%.
  • The International business has continued to grow strongly with first half revenue growth of 11%.
  • The UK has maintained its revenue growth at 2%, which is its third successive half year of growth.
  • Headline profit before tax at constant foreign exchange rates has grown by 13%.
  • Further progress has been made on the Electronic and Electromechanical (EEM) strategy.
  • e-Commerce grew strongly at 22% and now represents 30% of the Group’s revenue.
  • Gross margin stable across the half year’s two quarters at 50.1%.
  • All businesses contributing to the Group’s 1% point improvement in operating cost leverage.
  • The previously announced cost reduction programme substantially complete.
  • Strong cash flow performance with free cash flow of £36.4m, up £24.2m on the first half last year.
  • The roll-out of EBS within Europe now successfully completed and benefits are being delivered.
  • North American warehouse move completed.
  • The interim dividend maintained at 5.8p per share.

FOCUS FOR THE SECOND HALF

  • Deliver further EEM strategy initiatives; October 2007 has seen a significant increase in the range of EEM products available in the new catalogues in all the major European markets.
  • Launch an improved e-Commerce offer providing world-leading functionality and enabling faster and continuous new product introductions.
  • Identify and drive for further cost reductions.

HELMUT MAMSCH, CHAIRMAN COMMENTED:

“During the first half of the year, the Group has maintained its strong financial performance. Overall Group sales growth was 7% with a strong performance from the International business which delivered 11% growth and the UK delivering its third successive half year of growth. Headline profit before tax growth was 13% at constant foreign exchange rates.

Good progress continues to be made implementing our strategic development plan with the European EBS roll-outs and the previously announced cost reduction programmes being substantially complete. The focus is now on the rapid implementation of the EEM and e-Commerce strategies.”

Enquiries:

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

* Available to 15:00 on 9 November, thereafter 01865 204000.
The results and presentation to analysts are published on the corporate website at www.electrocomponents.com

Definitions of terms: Unless otherwise stated, in order to reflect underlying business performance, comparisons of revenue between periods have been adjusted for exchange rates and the number of trading days. Likewise, and unless otherwise stated, 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 (comprising depreciation and implementation costs) have been disclosed separately. Therefore, unless explicitly stated, measures based on operating costs, contribution and Process costs exclude EBS.

Headline profit: A charge of £1.0m (H1 2006/07: £0.7m charge) was incurred in the half 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 and EBITDA use headline profit figures.

Safe Harbour: This half-yearly financial report 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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