February 5, 2018 / 8:00 AM / 2 years ago

UK's Electrocomponents four-month revenue rises 14 percent

(Reuters) - Britain’s Electrocomponents Plc (ECM.L) said on Monday its underlying revenue rose 14 percent for the four months ended January, helped by double-digit growth across all the geographies it operates.

The electronics components distributor, which supplies Raspberry Pi - a low-cost computer created to help millions of people get online and learn to code, said it remained on track to deliver a stable gross margin for the year ending March 2018.

Revenue from the company’s Asia Pacific business recorded the highest growth among the five regions it operates, with revenue from the region rising 22 percent over the period.

The company has been cutting costs in Asia Pacific, growing its high-margin private-label business and improving its online sales since 2015, when Lindsley Ruth took over as CEO and was tasked to turn around the business.

Revenue from Electrocomponents’ North and South American divisions grew 12 percent, while its European businesses together rose 13 percent during the four months.

The company said in January the U.S. tax overhaul would result in a minimal impact on its 2018 tax rate, but expected the reform to reduce its 2019 tax rate to the mid-20s.

Electrocomponents’ previously guided tax rate was 28 percent in the first half of 2018.

The company said it was on track to deliver annualised net cost savings of 30 million pounds by March 2018.

Reporting by Hanna Paul and Justin George Varghese in Bengaluru; Editing by Gopakumar Warrier

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