TIDMECM
RNS Number : 2087V
Electrocomponents PLC
13 April 2021
Electrocomponents plc today issues a trading update for the year
ended 31 March 2021, ahead of publishing full-year results on 25
May 2021
LINDSLEY RUTH, CHIEF EXECUTIVE OFFICER, COMMENTED: "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(1) .
The response of our people to the challenges faced this year has
been exceptional and our outperformance continues to demonstrate
the strength of our differentiated proposition which is resonating
with both our customers and suppliers, delivering market share
gains and deeper customer relationships. However, we remain highly
mindful of the external pressures such as continuing freight
inflation, COVID-19 uncertainties, translation headwind from
sterling's strength, Brexit and ongoing unwinding of weak
comparatives, but also excited about the trading opportunities we
see. Looking forward to the year ahead, we are well positioned to
deliver ongoing growth in line with expectations through continued
organic and strategic investment, whilst operational efficiencies
will drive margins as we continue on our Destination 2025
journey."
Like -for-like revenue growth(2)
-------------------------------------------------------------------
Region Q3 to Dec 2020 Q4 to Mar 2021 Year to Mar 2021
-------------- --------------- --------------- -----------------
EMEA 8% 12% 1%
Americas 9% 13% 1%
Asia Pacific 10% 12% 5%
Group 8% 12% 1%
-- Strong revenue performance across Q4 with continued market share gains
o Group Q4 like-for-like revenue growth of 12%, of which c. 4%
benefit from weaker COVID-19 comparatives
o Within EMEA, UK momentum improved from end of January,
resulting in high single digit growth in Q4
o Our other EMEA markets grew double digits due to tougher
COVID-19 impacts in March 2020
o Strong performance in the Americas, overcoming the negative
impact from extreme weather in February
o Growth in Asia Pacific underpinned by strong double-digit
increase in Greater China
o RS PRO revenue grew 18% like-for-like (c. 5% benefit from
COVID-19 comparatives); full year up 10%
o Digital like-for-like revenue grew 12% (c. 4% benefit from
COVID-19 comparatives); web revenue rose 14%
-- Full year 2020/21 profit expected to be around the top end of
the consensus range(1) following stronger end of year revenue
growth
o Second half gross margin likely to be lower than first half
due to continuing cost pressures in freight, a regional mix effect
and inventory provisions (including c. 100bp year-on-year hit from
deflated PPE products)
o Operating costs affected by ongoing COVID-19 related charges
in freight and labour and a higher cost to serve post Brexit,
accounting for additional c. GBP9 million in H2
o RISE programme on track, delivering c. GBP7 million of
operational savings this year
-- Cost pressures in 2021/22 include ongoing freight inflation,
COVID-19 uncertainties, Brexit and translation impact of stronger
sterling(3)
-- Continued focus on cash generation to support organic and inorganic strategic growth
o Addition of John Liscombe Limited in February, the third
acquisition this financial year
o All acquisitions performing in line with expectations, with
future cross-selling opportunities on track
o Pipeline of strategic inorganic opportunities is strong, and
we retain a rigorous focus on value creation
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 ended 31 March 2021 is adjusted profit
before tax is GBP175.2 million within a range of GBP171.1 million -
GBP179.8 million (source:
Electrocomponents.com/investors/analyst-coverage).
2. Like-for-like revenue change is change in revenue adjusted to
eliminate 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. 2019/20 is
converted at 2020/21 average exchange rates for the period.
3. 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 EUR1.12
and $1.31 respectively. Every 1 cent movement in the euro has a
circa GBP1.5 million impact on annual profit. Every 1 cent movement
in the US $ has a circa GBP0.4 million impact on annual profit.
4. In the year ending 31 March 2022 we expect to see a positive
impact of around GBP9 million on revenue from additional trading
days compared with the year ended 31 March 2021.
Electrocomponents plc - Conference Call Dial in Instructions
Date: Tuesday 13 April
UK Time: 08.00
Chair: David Egan
Participant pre-registration link:
The link can be used to pre-register in advance and also
at the time of the call.
https://www.incommglobalevents.com/registration/client/7155/electrocomponents-trading-update/
Participant dial in via an
operator:
Telephone number: +44 20 3936 2999
PIN: 621694
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END
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