Knightsbridge-based Electrocomponents Plc reported reasonable growth over the year with pre-tax profits up 11% to just under UKP59m on turnover up just 3.5% to UKP394m. This growth was largely driven by the group’s core RS Components subsidiary where growth was stronger in the home market than in export. In particular, the catalogue service is widening the RS customer base. Misco, the group’s other catalogue business, is reported to be growing in Italy, the UK and West Germany. The new Spanish operation will be profitable next year. However, the US is proving a harder nut for Misco to crack. Electrocomponents’ US computer peripheral subsidiary Mesa Inc found the going tough in distribution and so is cutting jobs and overheads in this area, and will instead focus on its systems business. The group’s Distribution to Retail division operated at a small loss during the year and new management has been brought in to salvage the situation. However, prospects for the year old Hong Kong office look good as it has already made a significant contribution to the group’s product sourcing capability and to margins. Chairman Sir Keith Bright looks for the present growth rate to be sustained.
