Business
Interim Management Statement
Interim Management Statement.
About this update from Rs Group Plc
[{"type":"text","content":"\n \nRNS Number : 1665N Electrocomponents PLC 24 July 2014 \n \n\nELECTROCOMPONENTS PLC\n \nInterim Management Statement \n \nElectrocomponents plc, the global distributor for engineers, has today issued an interim management statement for the year ending 31 March 2015 (\"2015\"), which covers the first quarter ended 30 June 2014\n \nFirst quarter sales performance has been good in most markets, except the UK and France. After adjusting for trading days (1) and foreign exchange (2), Group underlying sales growth (3) in the first quarter was 3%, with an improved sales performance in May and June of 4%. Our International business, which comprises over 70% of Group revenues, grew by 5% and the UK declined by 2% (UK ex-Raspberry Pi declined by 1%). Within International, Continental Europe grew by 2%, impacted by a weaker market in France, North America grew by 8% and Asia Pacific grew by 8%. \n \nThe Group has continued the planned investment in its global strategy, notably the eCommerce with a human touch and One global offer initiatives where there has been further good progress in the quarter. eCommerce sales have grown by 5% and sales of our Famous For product categories, comprising our electronics and automation and control ranges, also grew by 5%.\n \nGross margin in the quarter was 0.8% points below the prior-year period. This reflects expected mix effects due to the stronger sales growth in North America and our Famous For product categories, and increased discounting in the UK and Asia Pacific.\n \nWe have taken action in the UK and have seen improving sales trends during the quarter. We are also taking action to improve the sales performance in France and the gross margin in Asia Pacific. Together, we expect that these initiatives will particularly benefit performance in the second half of the financial year.\n \nCash generation in the quarter has been strong and there have been no significant changes to the Group's financial position during the period.\n \nIan Mason, Group Chief Executive, commented: \n\"Group underlying sales growth in the first quarter was 3%, with combined sales growth across May and June of 4%. There has been further progress implementing our global strategy and performance in all markets was good with the exception of the UK and France. \n \nWe are t...