Electrocomponents plc (LON:ECM) has issued a trading update for the year ended 31 March 2022, ahead of publishing full-year results on 24 May 2022:
Like-for-like revenue growth1
|Year to Mar 2022|
Group like-for-like revenue growth for the year ended 31 March 2022 was 26%. Please refer to our commentary accompanying the recent trading update released on 9 March 2022 for more detail. As reported on 30 March 2022, we expect our full year adjusted operating profit margin to be at the top end of the consensus range2. Due to our trading update on 9 March 2022 and Investor Event on 30 March 2022, there will be no conference call taking place today. Webcasts from both are on our website www.electrocomponents.com/investors/financial-results.
As previously announced, in early May Electrocomponents plc will become RS Group plc as we strengthen our position as one brand, united behind our single purpose of ‘making amazing happen for a better world’. An announcement will be made when the name change becomes effective with a revised stock TIDM (ticker). Until such an announcement is made, trading will continue under the existing ticker ‘ECM’. No action is required on the part of any shareholder.
1. Like-for-like revenue growth is growth in revenue adjusted to eliminate the impact of acquisitions and the effects of changes in exchange rates and trading days year on year. Acquisitions are only included once they have been owned for a year, at which point they start to be included in both the current and comparative periods for the same number of months. 2020/21 is converted at 2021/22 average exchange rates for the period.
2. Consensus for the year ended 31 March 2022 (as reported on 30 March 2022) of adjusted profit before tax of £306.0 million within a range of £299.9 million to £313.0 million (source: Electrocomponents.com/investors/analyst-coverage).
3. Our profit remains sensitive to movements in exchange rates on translation of overseas profits. Average exchange rates for the year ended 31 March 2022 for euro and US dollar were €1.176 and $1.366 respectively. Every 1 cent movement in the euro has a c. £1.8 million impact on annual adjusted profit before tax. Every 1 cent movement in the US dollar has a c. £0.7 million impact on annual adjusted profit before tax.
4. Electrocomponents expect to see a negative impact of around £7 million on revenue from fewer trading days in 2022/23 compared to 2021/22.