Electrocomponents has made a flying start to its new financial year reporting continued double-digit revenue growth and improved profitability. In the first quarter like for like revenue growth was 10% driven by a 13% increase in revenues in the Americas and an 11% sales increase in RS Pro, the distributor’s own brand business.
Digital revenue grew broadly in line with the Group overall with like-for-like revenue growth of 9% during the quarter.
The focus is on driving a higher proportion of gross profit into operating profit. The company has launched a second phase of the Performance Improvement Plan aimed at making its organisation simpler and more customer centric. It is targeting £12m of annualised cumulative savings by March 2021, with £4m to be delivered during the current financial year.
On May 31 Electrocomponents completed the acquisition of IESA which provides outsourced procurement, inventory and stores management services, in addition to transactional processing services to manufacturing and process industries. It says trading is in line with expectations. Early feedback from customers, suppliers and employees has been encouraging.
Lindsley Ruth (pictured), Chief Executive Officer, commented: “The year has started well with our continued focus on the customer, digital leadership and sales effectiveness driving strong results across the business. We are making good progress on our initiatives to further simplify the way we operate in order to drive a more efficient and scalable operating model. All this means we are confident of delivering further strong progress in the current financial year.”