London product distributor defers dividend after increasing profits £4.4m

A London industrial and electronics product distributor has announced that it will defer its final dividend despite a rise in annual revenue and profit.

Electrocomponents PLC saw its pretax profit rise 2.3 per cent, up to £199.6m from £195.2m in the previous year.

It also saw revenue increase by 3.7 per cent from £1.88bn to £1.95bn for the year, but during lockdown, the company’s like-for-like revenue dropped by 14 per cent.

Lindsley Ruth, CEO of Electrocomponents, commented: “Electrocomponents delivered a strong performance in the year ended 31 March 2020 against an uncertain market backdrop and the impacts of the COVID-19 pandemic which started to impact trading volumes towards the end of the year.

“During the current crisis our focus has been to safeguard the health and wellbeing of our employees, support our communities and continue to provide a reliable service to customers and suppliers, including many operating in critical industries.

“We face this new challenge with a robust balance sheet and a clear ‘Destination 2025’ strategy.

“Our digital leadership, global distribution network and highly committed team differentiate us.

“We are taking tactical action to protect profit and conserve cash, while also accelerating key strategic initiatives to drive scale and efficiency to ensure we come out of this crisis strongly and well positioned for long-term value creation.”