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Electrocomponents H1 profits rise amid market share gains
4th Nov 2021 15:34
(Sharecast News) - Electrocomponents posted a rise in first-half profit and revenue on Thursday amid market share gains and an increase in customer numbers.
In the half year to 30 September, adjusted pre-tax profit was up 91% at £141.8m, with revenue 33% higher at £1.2bn. On a like-for-like basis, revenue was up 31%.
"Industrial production figures, supplier indications and results reported by peers show that we are outperforming the industrial market and gaining share as our customers have relied on our product availability, the breadth of our range and our experienced team to deliver products and services in time and ensure their trading continuity," the company said.
On a two-year basis, total customer numbers were up 24% and average order value was 9% higher, the majority of the growth driven by an increasing number of products within its customer baskets.
"Over the first five weeks of the second half we have continued to see further good momentum across all regions," Electrocomponents said.
"This is being driven by both ongoing growth in market share and strength in our underlying markets. The external environment remains very challenging especially within the supply chain, and the resulting product shortages, with inflation putting pressure on freight and labour costs. Our teams continue to work on mitigating these pressures as best we can, with our sourcing expertise and early action ensuring our availability rates remain strong and thus we remain confident of all we can influence and plan for, but mindful of the external uncertainties being faced."
At 1545 GMT, the shares were up 6.9% at 1,216p.
In the half year to 30 September, adjusted pre-tax profit was up 91% at £141.8m, with revenue 33% higher at £1.2bn. On a like-for-like basis, revenue was up 31%.
"Industrial production figures, supplier indications and results reported by peers show that we are outperforming the industrial market and gaining share as our customers have relied on our product availability, the breadth of our range and our experienced team to deliver products and services in time and ensure their trading continuity," the company said.
On a two-year basis, total customer numbers were up 24% and average order value was 9% higher, the majority of the growth driven by an increasing number of products within its customer baskets.
"Over the first five weeks of the second half we have continued to see further good momentum across all regions," Electrocomponents said.
"This is being driven by both ongoing growth in market share and strength in our underlying markets. The external environment remains very challenging especially within the supply chain, and the resulting product shortages, with inflation putting pressure on freight and labour costs. Our teams continue to work on mitigating these pressures as best we can, with our sourcing expertise and early action ensuring our availability rates remain strong and thus we remain confident of all we can influence and plan for, but mindful of the external uncertainties being faced."
At 1545 GMT, the shares were up 6.9% at 1,216p.