Electrocomponents annual profit falls as lower margins bite


product and service solutions company Electrocomponents reported a fall in annual profit as lower margins offset a rise in revenue.

For the year ended 31 March 2021, pre-tax profit fell 19.5% to £160.6 million year-on-year, while revenue climbed 2.5% to £2.0 billion.

Gross margin fell 1% to 42.7%, driven by 'increased freight costs, inventory provisions and regional mix,' the company said.

Te company raised its full-year dividend by 3.2% to 15.9 pence per share.

Looking ahead, the company said it had 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.'

'Looking at our performance on a two-year view, like-for-like revenue growth remains robust and broadly in line with our annual like-for-like revenue growth in H2 2020/21,' it added.

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