Electrocomponents Plc, the UK electronics and industrial products group behind the tri-yearly Radiospares catalog for techies the world over, attributed tougher market conditions for its lower level of growth rates. The shares slipped 3 pence to 422 pence yesterday as the group turned in pre-tax profits for the interim that rose by 15% to $32.1m on revenue that climbed 14% to $29.3m, compared to a respective 18% and 19% rise last time. The Peterborough, Cambridgeshire-based group operates in Australia, Austria, Denmark, France, Germany, Italy, the Republic of Ireland, New Zealand, Singapore, South Africa and Spain, with additional sales offices in the Far East. The firm comprises two divisions, RS Components, which sells in the UK through paper and CD-ROM catalogs and Pact International, distributor of plugs and switches to the amateur market. RS increased revenue by 15% to $27.6m and profits were up 17% at $47m. During the half the division increased its product range to 72,100 items, up from 62,900 before. Sales initiatives included a corporate purchasing card and implementation of Electrolink, an electronic trading system that links RS to the customer to provide a comprehensive stock control system. Outside the UK, RS sales were up by 22%. Construction has begun to double the size of the French facility and larger premises are being sought in Italy. A new industrial products catalog has been introduced in Australia and the range of products offered from stock in Singapore has substantially increased. Over at Pact, profits were flat at $100,000 on revenue that inched up 3% to $17m. Although Electrocomponents said the do-it-yourself market had shown some improvement in the traditionally weaker first half, conditions remained difficult. However, in his statement, the company’s chairman, Roy Cotterill, said that while the slowing of the economy in several countries in which the firm operates had tested the group, he expected the growth of the business to continue. A couple of recent board changes have taken place. Nicholas Temple, former IBM UK Ltd chairman and a vice-president of IBM World Trade Corp joins the group as a non-executive director, and Jeffrey Hewitt replaces Robert Tomkinson as group finance director. Cash holdings increased by 59% to $65.6m at the end of the first half, and the dividend will be raised by 20% to 2.4 pence a share.
