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.