Electrocomponents revenues rise

Electrocomponents' underlying revenue growth accelerated to 6% in the four months to the end of january, with all of its regional hubs seeing positive revenue trends during the period.

The group saud gross margins continued to see year-on-year growth in the period benefiting from initiatives on price and mix and foreign exchange tailwinds.

This more than offset an unfavourable geographic mix in the period, given faster growth in its lower gross margin North American hub.

An update said: "We continue to make good progress on our cost initiatives and are on track to deliver £18m of net savings in the year to March 2017.

"We are also investing to drive the long-term growth of the business, appointing new Presidents for both RS and Allied and significantly strengthening the leadership teams in Innovation, DesignSpark and IT.

"We continue to expect FY 2017 revenue and profits to see a significant benefit from foreign exchange and additional trading days.

"As previously guided in FY 2018 we expect to see an adverse impact on revenues and profits from fewer trading days compared with FY 2017."

Chief executive Lindsley Ruth said: "We have made further good progress on our Performance Improvement Plan initiatives, which has driven faster revenue growth and improved profitability during the period.

"We are on a journey to transform both the customer experience and financial performance of this organisation and we remain on track to make good progress on both these fronts."