Electrocomponents investment in own brand products is paying off as RSPro reported like for like revenue growth of 9.5% in the Group’s full year 2020/2021 results.
Revenues at Electrocomponents Group rose 2.5% or 1.9% like for like to £2.003billion after acquistions are stripped out.
Profitability fell from £220.7 million to £188.3 million, taking a hit from the impact of COVID-19, Brexit, freight costs and inventory provisions.
Commented Lindsley Ruth (pictured) Chief Executive Officer, “Electrocomponents has delivered a strong performance in a challenging year. We continue to drive market share gains, invest in our organic growth opportunities and generate good cash flow. In addition, we welcomed three high quality businesses into our Group to accelerate our strategic aspirations. I am incredibly proud of how well our people stepped up to the challenge, and I thank them all.
While we remain mindful of external pressures including ongoing cost inflation and potential supply chain shortages, we are confident that we are well positioned for a rapidly changing world. The Group has carried strong momentum into the new financial year, and we are excited about the opportunities we see through our Destination 2025 strategic roadmap to drive profitable market share growth and operational efficiencies.”
Web revenue grew 2.4% with total digital revenue accounting for 63% of the Group’s revenues.
Three strategic acquisitions, John Liscombe, Synovos and Needlers are performing in line with expectations, with integration and cross-selling on track
Electrocomponent’s RISE programme which aims to simplify and streamline the Group delivered £7 million of cost benefit.
Current trading shows strong start to the year due to COVID-19 comparatives.
In the first seven weeks of 2021/22 the Group has seen very strong revenue growth due to the weaker comparatives from the first COVID-19 lockdowns.
The Americas’ performance continues to benefit from a wider product range due to the extended distribution centre and change in sales focus.
The company says it is particularly pleased with the performance in EMEA given ongoing lockdowns and the logistical challenges presented by Brexit. Asia Pacific remains strong helped by the buoyant electronics market.
For the coming year warning flags are raised over external pressures, such as ongoing additional costs and uncertainty relating to the pandemic, Brexit frictions, potential supply chain shortages and the translational impact from the strength of sterling.
Nonetheless Electrocomponents cites growth in market share and customer numbers demonstrates its proposition is resonating with customers.