Electrocomponents's first quarter revenues slide
Electronics products distributor Electrocomponents posted a marked drop in first-quarter revenues on Tuesday as the ongoing Covid-19 outbreak weighed on trading.
Electrocomponents said like-for-like revenues had dropped 11% year-on-year during the first quarter, mainly due to weakness in both Northern and Southern Europe.
The FTSE 250-listed firm stated that digital sales declined 12% on a like-for-like basis, as e-procurement revenue underperformed as a result of a temporary reduction in demand from several key corporate clients.
Asia Pacific saw continued growth in Greater China and Australia but this was offset by the impact of lockdowns in other markets. However, Europe, the Middle East and Africa saw the "most significant improvement" during the quarter, with continued share gains, while its operations in the Americas saw a "more limited recovery" year-to-date.
Looking forward, Electrocomponents cautioned that while the current trading environment remained "uncertain", it would continue to be highly focussed on "protecting profit and conserving cash".
As of 0900 BST, Electrocomponents shares were down 0.22% at 681p.