Electrocomponents Plc. (ECM.L), distributor of electronics and maintenance products, reported that profit for the year ended 31 March 2013 attributable to equity shareholders declined to 62.9 million pounds from the previous year's 84.9 million pounds, with earnings per share decreasing to 14.3 pence from the prior year's 19.3 pence.
Profit before tax slip to 91.3 million pounds from last year's 122.3 million pounds. Reported profit before tax comprised headline profit before tax after reorganisation costs. During the year non-recurring reorganisation costs of 7.4 million pounds were recorded. These costs primarily related to redundancy charges arising from the implementation of the new global operating model.
Headline profit before tax was 98.7 million pounds, a decrease of 19.3% from the prior year's 122.3 million pounds. Around 10 million pounds of this decrease was due to fewer trading days and adverse currency movements (principally due to the weakening of the Euro against Sterling) compared to the prior year. The remainder of the decrease reflected the lower gross margin and increase in headline operating costs at constant currency. Headline earnings per share was 15.6 pence, down from 19.3 pence in the prior year.
Annual revenue declined to 1.236 billion pounds from last year's 1.267 billion pounds.
The company said its board has proposed a maintained final dividend of 6.75 pence per share. This will be paid on 22 July 2013 to shareholders on the register on 21 June 2013. As a result, the total dividend for the financial year will be maintained at 11.75 pence per share, resulting in headline earnings dividend cover of 1.3 times.
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