Electrocomponents sales slump slows

13th Nov 2009 07:34

Electrical parts company Electrocomponents saw profits slump 41% during the first half as the global recession caused a sharp drop in revenue, although the sales decline is slowing.Headline profit before tax fell to £24.8m in the six months ended 30 September, down from £42.2m a year ago. Revenue was 15% lower at £447.2m, or down 8.4% on a reported basis.But the impact on sales has eased across all regions. They fell 17% in the first quarter, by 13% over the next three months and by about 8% in October. Sales fell 8% last month in both the UK and International businesses. Within International, Continental Europe saw revenue drop 8%, North America by 11% and Asia Pacific 4%. "Although the macroeconomic outlook remains uncertain, the sales trend is encouraging, which gives us confidence in the out-turn for the full year," said the FTSE 250 firm.It has cut costs by about 10% and is on track to achieve reductions of £18m a year. The interim dividend stays at 5p a share.