Electrocomponents profits plummeted 19% in its 2012/2013 financial year as a result of margin pressure in a competitive market. Sales dropped a smidgeon from £1.27bn last year to £1.24bn. Electronics sales fell 2% worldwide and maintenance sales picked up the slack showing 3% growth. UK sales were up 4%, spurred on by the Raspberry Pi factor. International sales declined 1%. Group profits came in at £98.7m against £122.3m last year. The distribution group says that underlying sales grew 1% when fewer trading days and currency movements.
Group eCommerce sales grew 4% in the past year and now represent 56% of total sales.
There is better news for the start of the new financial year with sales up 1% in the first seven weeks. The International business grew by 1% and the UK was flat. Within International, Continental Europe grew by 2%, North America grew by 1% and Asia Pacific declined by 1%.
“The Group has reported results for the year in line with expectations. Underlying sales grew by 1% whilst headline profit before tax declined in challenging markets. However our initiatives to increase operating margins led to a significant improvement in financial performance in the second half,” commented Ian Mason Group Chief Executive.
“This has been a year of significant change for the Group. We have successfully implemented a new global operating model and set a common global strategy. These developments, supported by additional investment, will enable us to increase the rate at which we gain market share and improve profitability over the medium term,” he added.