Weakness weighs on electronics

Electrocomponents, which sells products ranging from batteries and cables to safety equipment, said second-quarter revenue grew by eight per cent, compared with 14 per cent in the first, as growth in continental Europe and the US offset a slowdown in Britain.

Group revenue for the six months to the end of September grew by 11 per cent, with international business up 14 per cent and the UK up five per cent. Chief executive Ian Mason said: “The indicators are that things are getting tougher, if you look at the PMIs, the general economic uncertainty.

“But we are still growing very well at eight per cent in the second quarter.”

In September group revenue grew by around five per cent, with its international business, which represents 70 per cent of sales, up seven per cent. The UK declined by around one per cent.

“Electronics have been tough, but there is a general softness in the UK,” said Mr Mason.

“Our large corporate and small customers have been doing well, our ones in the middle have found life a bit tougher, and it’s no surprise any spending with the Government has been very tough.”

In September, rival distributor Leeds-based Premier Farnell posted one per cent growth in its second-quarter profit but signalled a two per cent fall in August sales amid more signs of a global economic slowdown.

Electrocomponents said eCommerce revenue grew by around 27 per cent and now represented around 54 per cent of group sales.