Electrocomponents headline profit down 10%

29th May 2009 07:47

Electrical parts firm Electrocomponents saw headline profit fall 10% in the year and warned that pressures on revenue continues in the current year. In the first eight weeks of the new financial year the sales trend has been similar to the final quarter of last year. Year on year group revenue has declined by around 17%, the UK by around 14% and the International business by around 19%. Within International, Continental Europe has declined by around 17%, North America by around 23% and Asia Pacific by around 15%. Headline pre-tax profit was £86.6m against £96.4m before due to the decline in contribution from the UK business and increase in reported Process costs. Pre-tax profit rose 1.2% to £96.5m.Group revenue rose 5.4% to £974.6m, benefiting from Sterling's depreciation in the year but underlying revenue declined by around 5% year-on-year.The group said revenue was significantly impacted by the deteriorating economic environment across the world. This deterioration accelerated as the year progressed and particularly affected the second half year sales performance. "Our strategy remains unchanged. We will continue to strengthen our electronics and e-Commerce offers to better serve customers' needs and drive our market leading offer for maintenance customers. An increasing number of strategic initiatives will be introduced into the market as the investments we have made over the past few years deliver," said the group.