Electrocomponents Plc, the name behind the invaluable source for tecchies everywhere, the Radiospares catalogue, has had yet another record year, beating most market forecasts and resulting in its 27th consecutive dividend increase since flotation back in 1967. Pre-tax profits at the Peterborough, Cambridgeshire-based electronic distribution group rose 18% to ú86.1m from turnover that was up 19% at ú472.6m. Electrocomponents’ shares rose 21 pence by midday to 608 pence, and the company is proposing a one-for-one capitalisation issue in August to improve the shares’ market. The group has three divisions, RS Components, RS International and Pact International. RS Components’s sales increased by 15% to ú320.2m. The division, which sells its products through both paper and CD-ROM catalogues has added two more specialied editions. The Mechanical catalogue serves mechanical engineers and the Health & Safety Catalogue was released in March. Trade counters in the UK have increased to 11 in the year, with the opening of Watford, Nottingham, Leeds and Southampton, with more planned for this year. Facilities at Corby and Nuneaton will be expanded – starting this summer – so that by 1999, each site will have the capacity that Corby has now, said chairman Roy Cotterill in his statement. RS International’s sales grew by 43% to ú115m. The second CD-ROM catalogue has been received just as enthusiastically in Germany as it was in the UK, according to Cotterill. The German division reported a small operating profit after absorbing the costs of the CD-ROM launch and is relocating to new premises near Frankfurt, which should be sufficient for the next five years. The first French trade counter has exceeded the company’s expectations since it was opened in Lyon last November. It was joined by Toulouse in April. RS Italy remains on course for profitability by the end of this year, and a Danish catalogue was launched in April following the integration of RS Denmark with the Radio-Parts business acquired in March 1994 (CI No 2,364). The integration in New Zealand has also been completed and the Australian arm has continued to perform well, according to the company. The Australian, Irish and New Zealand markets have been trying out a floppy disk addition to the CD-ROM catalogues that gives local delivery and currency information, to general approval, which further convinces the company that it is the medium of the future. An Indian joint venture was formed in 1994 with Control Group of Delhi, with encouraging early results. Pact International finds life harder than its illustrious stable-mates, reporting sales edging up 2% to ú37.8m, and it managed an operating profit of ú400,000, against a ú300,000 loss last time. The division has been consolidated on to one site in Peterborough, and further costs will be incurred this year as its markets are developed. Continued modest profits are predicted, however. The company’s net cash balances at the year-end were up ú4.1m at ú61.5m, largely as a result of RS Components’ cash generation power. T he final dividend of eight pence makes a total for the year of 11.25 pence, representing a rise of 18% on last year.
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