RS owner Electrocomponents posts strong revenue and profits growth

Electrocomponents, the parent company of distributor RS Components, has posted strong growth in both sales and profits in full-year results published this morning.

In the year to 31 March, the group recorded turnover of £1,511.7m, up 17.1% on the previous year. Underlying growth – which excludes the effects of currency fluctuations and extra trading days – was 4.8%.

However, the annual figure masks an accelerating sales growth trajectory, with 2.1% underlying growth in the first half of the year rising to 7.1% in the second half of the year.

Pre-tax profit, meanwhile, rose by 66.7% to £128.0m.

Lindsley Ruth, CEO of Electrocomponents (pictured), said: “Over the last two years, we have significantly strengthened our leadership and begun to refocus the business back on what lies at its heart, the customer and the supplier.

“Getting the basics right is now delivering strong top line growth, stable gross margins, improved efficiency, and significant growth in profits and cash flow. With a stronger balance sheet, we are pleased to return to growing our dividend. We have taken a major step forward.

“From this stronger platform we are focussed on the next step change in the performance of this organisation.

“Having reconfirmed our strategic priorities and identified concrete transformation initiatives to drive future performance, we remain excited about the significant potential for further improvement and growth.”