TIDMECM
RNS Number : 4278O
Electrocomponents PLC
08 October 2021
8 October 2021, 7.00 am
Electrocomponents plc today issues a trading update for its
first half ended 30 September 2021 ahead of publishing half-year
results on 4 November 2021
STRONG PERFORMANCE AHEAD OF OUR EXPECTATIONS
LINDSLEY RUTH, CHIEF EXECUTIVE OFFICER, COMMENTED: "Our trading
has remained very strong across all regions as we have worked
closely with suppliers to ensure our product availability, delivery
and service offer remain robust, which has driven further growth in
both customers and average order value. This has led to our
financial performance to date being stronger than expected. We
remain cautious about the external challenges and the resulting
impact this could have on industry supply and customer demand, but
our differentiated offer means we are well placed strategically to
continue to gain market share and take advantage of the significant
growth opportunities we see."
Like-for-like revenue growth(2)
-----------------------------------------------------------
Versus 2020/21 (one year) Versus 2019/20 (two
year)
Region Q1 to June Q2 to Sept H1 to Sept H1 to Sept 2021
2021 2021 2021
-------------- ----------- ----------- ----------- --------------------
EMEA 37% 22% 29% 19%
Americas 40% 35% 37% 27%
Asia Pacific 31% 31% 31% 29%
-------------- ----------- ----------- ----------- --------------------
Group 37% 26% 31% 22%
Revenue performance remains strong as we continue to manage our
product availability proactively
-- One-year like-for-like H1 revenue growth was 31%, with
acquisitions contributing a further 7%, trading days 1% and foreign
exchange a 6% headwind to deliver total revenue growth of 33%.
-- Two year like-for-like H1 revenue growth was 22%.
-- Our electronics product range, which is c. 22% of Group
revenue, grew two-year like-for-like H1 revenue by 33%.
-- Within EMEA, revenue performance was broadly similar across
our main markets, benefiting from an improved operational model and
focus. The UK suffered slightly over the COVID-19 'pingdemic' but
has since recovered. Germany is gaining momentum driven by
leadership team changes and refocused sales processes. Our
distribution centre expansion is in early stage commissioning and
will bring us closer to our European customers.
-- Americas continues to perform very strongly due to the
significant investment in our people and culture, digital and
marketing proposition, and a wider product offer resulting from our
distribution centre extension.
-- Asia Pacific growth reflects a strengthened management team,
change in culture and refocused sales processes which are driving
strong market share gains in both the industrial and electronics
markets.
-- Integration of our acquisitions is progressing as planned,
delivering cross-Group benefits and new contract wins.
-- Our own-brand, RS PRO, grew two-year like-for-like H1 revenue
by 28% despite having a limited electronics range.
-- Web two-year like-for-like H1 revenue increased by 26%, with
like-for-like digital participation of 63%.
Operating efficiency improved across all regions although cost
pressures remain
-- Improvements in gross margin delivered through product
management work is being partly offset by regional and product mix
dilution and ongoing cost pressures from inbound freight
inflation.
-- We continue to experience higher outbound freight charges,
costs to serve and labour inflation which are showing no signs of
abating.
-- We increased operational investment to strengthen our
expertise, technological capabilities and product and service
capacity to improve the efficiency of our operating basics and
support future growth.
-- We are on track to improve operational efficiencies and
deliver our Destination 2025 target of a 30% adjusted operating
profit conversion and mid-teens adjusted operating profit
margin.
-- Our cash generation and conversion remain strong, supporting our organic and inorganic growth opportunities.
Our financial performance to date has been stronger than
expected
-- Looking forward, we face much tougher comparatives and a
number of external challenges, including supply chain shortages,
which are affecting industrial production and increasing cost
pressures. Hence, we expect our full year profit to be more
weighted to the first half than in previous years.
-- However, with the strong performance in the first half, and
notwithstanding the uncertain trading environment, we now
anticipate full year revenue growth and adjusted operating profit
margin to be slightly ahead of the guidance provided with our Q1
update.(3)
Interims announcement
We are scheduled to announce our half year results including an
update on our Environmental, Social and Governance plan on 4
November 2021.
LEI: 549300KVXDURRKVWR37
Enquiries:
020 7239
David Egan Chief Financial Officer 8400
020 7239
Lucy Sharma VP Investor Relations 8427
Martin Robinson / Olivia 020 7353
Peters Tulchan Communications 4200
Notes:
1. Consensus for the year ending 31 March 2022 is adjusted
profit before tax of GBP261.2 million within a range of GBP251.2
million to GBP274.2 million (source:
Electrocomponents.com/investors/analyst-coverage).
2. Like-for-like revenue growth is growth in revenue adjusted to
eliminate the impact of acquisitions and the effects of changes in
exchange rates and trading days year on year. Acquisitions are only
included once they have been owned for a year, at which point they
start to be included in both the current and comparative periods
for the same number of months. 2020/21 is converted at 2021/22
average exchange rates for the period.
3. The guidance given at our Q1 trading update, released on 8
July 2021, was: "...to deliver low double-digit to mid-teens
like-for-like revenue growth for the full year, supporting a return
to an adjusted operating profit margin around 2019/20 levels".
4. Our profit remains sensitive to movements in exchange rates
on translation of overseas profits. Average exchange rates for the
year ended 31 March 2021 for euro and US$ respectively were
EUR1.121 and $1.308 respectively. Every 1 cent movement in the euro
has a circa GBP1.5 million impact on annual adjusted profit before
tax. Every 1 cent movement in the US $ has a circa GBP0.4 million
impact on annual adjusted profit before tax.
5. We expect to see a positive impact of around GBP9 million on
revenue from additional trading days in 2021/22 compared to
2020/21.
Conference call details
There will be a conference call for analysts and investors today
at 8.00am BST via an audio conference call. A replay of the
conference call will be provided shortly after the event via the
investor relations page of the Electrocomponents website:
https://www.electrocomponents.com/investors
Pre-registration link
If possible, please pre-register for this call to join digitally
(without an operator), via the following link:
https://www.incommglobalevents.com/registration/client/8756/electrocomponents%E2%80%99-trading-update/
Conference call timing
Date: Friday, 8 October 2021
Time: 8.00am BST
Participant dial-in via operator
United Kingdom (local): 020 3936 2999
All other locations: +44 20 3936 2999
Access code: 119057 - Participants will be greeted by an
operator who will register their details.
Online replay
Access details: A recording will be available until Friday, 15
October 2021
Click on the following link and enter the access code: 602399
https://www.incommglobalevents.com/replay/6800/electrocomponents-h1-2022-trading-update/
Telephone replay
Access details: A recording will be available until Friday, 15
October 2021
United Kingdom: 020 3936 3001
USA: 1 845 709 8569
All other locations: +44 20 3936 3001
Access Code: 602399
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFSDIDLDIIL
(END) Dow Jones Newswires
October 08, 2021 02:00 ET (06:00 GMT)
Rs (LSE:RS1)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Rs (LSE:RS1)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024