Covid-19 costs hit Electrocomponents
UK listed global distributor Electrocomponents has reported revenue of £2.0bn (€2.31, $2.83) for the year to March 2021.
The group has nine operating brands, with RS Components, Allied Electronics & Automation, RS PRO, OKdo, DesignSpark and IESA with new buys Synovos, Needlers and Liscombe.
Revenue was up 2.5 percent, although that’s up 1.4 percent on a like for like basis before three acquisitions. Web revenue grew 2.4 percent with total digital revenue accounting for 63 percent of Group revenue, over £1bn. Operating costs included £19m for Covid-19 and Brexit due to higher freight costs, leading to profits reduced by 19.5 percent to £241.2m.
“Electrocomponents has delivered a strong performance in a challenging year,” said Lindsley Ruth, CEO of Electrocomponents. “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.”
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“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,” he said.
The group companies stock more than 650,000 industrial and electronic products, sourced from over 2,500 leading suppliers for 1.2m industrial customers in 32 countries and has a pipeline of acquisitions following deals with Synovos in the US, PPE supplier Liscombe and Needlers.
“In the first seven weeks of 2021/22 we have seen very strong revenue growth due to the weaker comparatives from the first Covid-19 lockdowns,” said Ruth. “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. Our performance in Americas continues to benefit from a wider product range due to the extended distribution centre and change in focus by our sales teams. We are 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.”
“External pressures continue, 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,” he added, while pointing out the Group has more acquisitions planned for the coming year
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