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Why invest in us

Leading global player in attractive market

4 key reasons to invest

  • Well-established global market leader
  • We are well placed to take a greater share of the highly fragmented, growing markets in which we operate from our numerous smaller competitors
  • On average, the markets we operate in grow faster than GDP through the business cycle
  • We have initiated a major Performance Improvement Plan to drive £30 million of annualised cost savings by March 2018

We are the world's leading high-service distributor in large, growing and highly fragmented markets. Our two well-established brands, RS Components (RS) and Allied Electronics (Allied), have existed for more than 75 years and cover around 90% of the world's GDP.

We have a major opportunity to take share in the two large and distinct markets in which we operate:
 

Performance Improvement Plan

We have initiated a major Performance Improvement Plan (PIP) to make Electrocomponents a more efficient and responsive organisation. Progress on the implementation of the PIP has been encouraging.

During the first half of 2017 we have seen significant growth in both profits and cash flow, and we have delivered net cost savings of £13 million, which was in excess of our original expectation of £10 million. We now expect to deliver cost savings of £18 million in the full year to March 2017, and annualised net savings of £30 million by March 2018.

We are focusing on three key business priorities that lie at the heart of successful distribution businesses:

Customer focus - excel at the basics

  • Focus the organisation to drive an improved customer and supplier experience
  • Reprioritise digital development and online user experience to drive faster change
  • Introduce a differentiated, more focused service offer for industrial and electronics customers

Drive accountability throughout the organisation

  • Local profit and loss accountability
  • Drive a higher proportion of RS Pro sales, to improve gross margin mix
  • Realign KPIs and review incentive structures to increase variable component

Simplify - operate for less

  • Targeted, annualised net cost savings of at least £25 million in the year to March 2018
  • Work continues to identify additional savings by further simplification of the way we operate

We have a clear plan, strong financial position and an energised leadership team that are determined to deliver a sustained improvement in financial performance.

Lindsley Ruth 2017 Half-year Results

Lindsley Ruth, CEO, discusses progress with the Performance Improvement Plan.

No.1

International high-service distributor

About our strategy

Measuring our success

1 million+

Customers in more than 80 countries

About our customers