Sales growth and cost cutting has enabled Electrocomponents to make a good start to its new financial year. Sales rose one per cent aided by a three per cent increase in Europe and a fine performance from RS Pro, the company’s own brand division, saw sales accelerate seven per cent.
The company is also confident it can deliver at least £15m annualised net savings during the current financial year and at least £25 million of annualised net savings by March 2018.
The distributor reported a slower second half to the quarter due to strong coparators in Southern and Central Europe. North Europe continued to perform well, with the UK seeing growth throughout the period and says that July has started encouragingly.
And if the post-Brexit weakness in the pound persists, this could also be a benefit to profits in the current financial year.
Lindsley Ruth, Chief Executive Officer, commented: “We have made a strong start to the year, with our cost saving programme and Performance Improvement Plan initiatives driving noticeably improved profitability. We continue to pursue our initiatives to improve customer service, stabilise gross margins and create a leaner, simpler organisation. Whilst it is too early to know the impact of the Brexit vote on the UK and global economy, we remain confident of making further good progress in the current year.”