Electrocomponents pushed upwards by sales growth

FTSE-250 parts manufacturer and distributor Electrocomponents (LON:ECM) has seen its share price increase by 3.1% to 618.20p (as of 15:10 BST) after like-for-like revenues rose by 4% during the 6 months ended 30th September, driven by a strong performance in the industrial division. First half margins are expected to be down by around 0.8 percentage points, due to a shifting product mix, but this decline is expected to moderate in the second half of the year as a result of a shift in purchasing and pricing decisions.

Lindsley Ruth commented: “Our relentless focus on customer service, digital leadership and sales force effectiveness has been key in driving market share gains even in these more uncertain markets. We continue to invest in strategic initiatives to position the Group to deliver sustained growth over the longer term. We are pleased with our performance in H1 and remain on track to deliver good progress for the year“.