Electrocomponents reports 4% rise in LFL sales; says margins to take hit in H1

Writer, Stock Market Wire
Wednesday, July 3, 2019 - 07:32

Electrocomponents reported a 4% rise in like-for-like revenue growth for the first quarter, though said it expected first-half margins to take hit from an expansion in inventory, but later stabilise as the year progresses.

A programme to broaden its electronics inventory to exploit market opportunities would 'negatively impact gross margin in H1 2020, the company said. 'Overall, we expect a broadly stable gross margin for the full year.'

During the first quarter of the year, the company reported a 4% rise in like-for-like revenue growth as continued strength in industrial revenue more than offset an expected slowdown in Electronics revenue.

The company said it would continue to focus on tightly managing our operating costs, while investing in its strategy to drive longer-term sustainable growth.


Related content

Broker Forecast - JP Morgan Cazenove issues a broker note on Electrocomponents PLC

JP Morgan Cazenove today reaffirms its neutral investment rating on Electrocomponents PLC (LON:ECM) and raised its price target to 661p (from 591p).

Broker Forecasts data...

Wed, 09/10/2019 - 10:10


Electrocomponents like-for-like sales up 5% on 'strong' performance in industrial division

Electrocomponents said like-for-like revenue grew 5% in the first half of the year as 'strong performance' in industrial offset softer growth in electronics amid an...

Tue, 08/10/2019 - 07:34


Broker Forecast - UBS issues a broker note on Electrocomponents PLC

UBS today reaffirms its buy investment rating on Electrocomponents PLC (LON:ECM) and raised its price target to 705p (from 650p).

Broker Forecasts data provided by...

Wed, 10/07/2019 - 13:20


Discover the hottest UK income funds

Author: 

Dividends have always been important to investors. While there are many retail enthusiasts both willing and able to conduct the necessary research on individual income...

Thu, 04/07/2019 - 00:00


Broker Forecast - Barclays Capital issues a broker note on Electrocomponents PLC

Barclays Capital today reaffirms its equal weight investment rating on Electrocomponents PLC (LON:ECM) and raised its price target to 640p (from 610p).

Broker Forecasts data...

Thu, 27/06/2019 - 09:30