Industrial and electronics products distributor Electrocomponents said on Tuesday that it had delivered a “strong” revenue performance in the fourth quarter, driven by continued market share gains throughout the period.
Electrocomponents posted a like-for-like revenue growth of 12%, of which roughly 4% benefitted from weaker Covid-19 comparatives.
UK momentum improved in its EMEA unit from the end of January, resulting in high single-digit growth, while its other EMEA markets grew double digits due to tougher Covid-19 impacts in March 2020.
The FTSE 250-listed firm also stated that full-year profits were expected to be around the top end of the consensus range following the stronger-than-expected end of year revenue growth. However, second-half gross margins were said to be likely lower than those seen in the first due to continuing cost pressures in freight, a regional mix effect and inventory provisions.
Chief executive Lindsley Ruth said: “We are very pleased with another strong performance in the fourth quarter. The business demonstrated its resilience and agility once more, rising to the combined challenges of lockdown, Brexit and extreme weather conditions in Texas with trading not missing a beat; group performance continued at a similar rate to the third quarter until mid-March.
“The last two weeks of the period saw a material improvement in revenue growth against weaker comparatives when most of EMEA entered the first Covid-19 lockdowns. We expect profit for the year ended 31 March 2021 to be around the top end of the consensus range.”
As of 0825 BST, Electrocomponents shares were up 1.57% at 1,036.0p.
