April 5, 2018 / 6:47 AM / 2 years ago

Electrocomponents sees profit beating market estimates

(Reuters) - Electrocomponents Plc (ECM.L), Britain’s largest industrial distribution firm, said its expected full-year adjusted pretax profit to be above market estimates after posting strong revenue growth in the fourth quarter.

Adjusted profit before tax for year ended March 31 is expected to be slightly ahead of the top end of the market consensus range of 161.8 million pounds to 171 million pounds, the supplier of Raspberry Pi, a low-cost credit card-sized computer, said.

Comparable revenue in the fourth quarter rose 10 percent, with big increase coming from its Asia Pacific business, Electrocomponents, which is turning itself around, said.

The company has been cutting costs, streamlining business in Asia Pacific, growing its high-margin private-label electric and automation tools business, RS Pro, and improving its online sales to turn around the business.

Comparable revenue rose 12 percent in the fourth quarter. On costs, the company said first phase of its performance improvement plan delivered cumulative annual savings of 30 million pounds.

The turnaround - led by its Chief Executive Lindsley Ruth, who took charge in 2015 - has driven up the company’s stock over the last two years to levels last seen in 2002.

Reporting by Rahul B in Bengaluru; Editing by Gopakumar Warrier

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