The distribution sector's climb off the recessionary sick bed was given a further lift today by Electrocomponents, parent company of RS Components.
Reporting profits of £24.8m in the first half of this year compared with £42.2m last year, the company said the decline in sales had slowed, and it was expecting a return to sales growth next year.
Ian Mason (pictured), chief executive of Electrocomponents commented: "We've seen customers placing more orders on the ground and those orders have been slightly bigger."
North America is leading the recovery, and Asia Pacific is bouncing back quickly, according to Mason.
Sales in the first half were £447.2m compared with £488.1m last year.
In the past 12 months RS Components had made a determined push to bolster its semiconductor product portfolio, a strategy which has helped bring 18,000 new products into the company's catalogue. It also announced lower prices in its latest catalogue. Investors nervous about the effect on margins may be reassured by finance director Simon Boddie's observation. "There has been more discounting, but on the buying side we are passing this pressure back to our suppliers."
E-commerce sales continued to rise with a strong spurt in north American performance. The company also strengthened its position in east Europe via the launch of five new websites in local languages.
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