RNS Number:6777R
Electrocomponents PLC
05 November 2003


                                 Embargoed to 7:00am, Wednesday 5 November 2003


                               INTERIM STATEMENT

Electrocomponents plc, the major international high service distributor of
electronic, electrical and industrial supplies, today announces its results for
the half year ended 30 September 2003.

The summary results, against the first half of last year, were:

Sales                               #368.8m   Up                   1.0%

Operating profit *                   #46.0m   Down                 1.7%

Profit before tax*                   #45.3m   Down                 2.2%

Earnings per share*                    7.4p   Down                 2.2%

Dividend per share                     5.6p   Up                   6.7%

Net debt                             #69.3m   Up by               #2.1m

* Before amortisation of goodwill.

Bob Lawson, Chairman, commented:

Demand remained subdued in our major markets throughout the half year, with
continental Europe being particularly weak. Sales were flat compared with last
year, which is an encouraging step towards reversing the recent declines. Our
businesses in the United States, China and Japan have grown well. Sales of the
UK business declined 1.6% after adjusting for the closure of an activity last
year. This adjusted rate of decline has improved from 9.2% in the comparable
period last year. e-Commerce continues to be a success with sales growth of 44%.
The first implementations of our major systems projects represent significant
steps forward after considerable investment. Our results again reflect a solid
overall operating performance with similar operating margins to last year. Cash
flow has again been strong. The increase in the interim dividend of 6.7%
reflects our confidence in the future prospects for the Group.

As last year, management continues to focus on achieving sales improvements
driven by our own actions, enhancing gross margins and controlling costs. We are
having success in targeting sectors outside our traditional manufacturing
customer base and we continue to expect such sectors to provide considerable
long term growth opportunities.

Sales per day across the Group improved in September and October from the
unusually depressed levels of August and were level with last year (on a
like-for-like basis). We do not anticipate a rapid improvement in the trading
backdrop, though leading indicators, such as Purchasing Managers Indices, have
been trending upwards, albeit from low levels. Our businesses remain well
positioned to respond rapidly to a trading recovery and I remain confident about
the Group's medium and long term prospects for sales and profit growth.




Bob Lawson

5 November 2003

Enquiries:

Bob Lawson, Chairman                   Electrocomponents plc   0207 567 8000*

Ian Mason, Chief Executive             Electrocomponents plc   0207 567 8000*

Jeff Hewitt, Deputy Chairman /         
Finance Director                       Electrocomponents plc   0207 567 8000*

Diana Soltmann / Andy Berry            Flagship Consulting Ltd 0207 886 8440

* Available to 15:00 on 5 November, thereafter 01865 204000.

The results and analyst presentation with accompanying audiocast are published
on the Corporate website at www.electrocomponents.com



                              CHAIRMAN'S STATEMENT



FIRST HALF RESULTS

Demand remained subdued in our major markets throughout the half year, with
continental Europe being particularly weak. Sales were flat compared with last
year, which is an encouraging step towards reversing the recent declines.

Against the first half of last year, Group sales increased by 1.0% to #368.8m
from #365.3m, though after adjusting for the closure of an activity last year,
favourable exchange rate movements and trading days, sales were flat. Profit
before tax and amortisation of goodwill fell 2.2% to #45.3m from #46.3m. After
adjusting for the beneficial #1.3m impact of exchange rates and the costs of
#2.8m relating to the closure of an activity charged in the first half of last
year, the decline was #5.1m. During the half year, about #6m of additional costs
were incurred in the development of the Group's selling and marketing activities
and systems capabilities.

Sales in our UK business fell, but at a much reduced rate than during the
previous year, as rationalisation programmes continued to impact our customers
in manufacturing to a greater extent than could be offset by our growth in other
sectors. UK manufacturing is now showing some signs of becoming more stable, in
terms of employment and output. Whilst reported sales in continental Europe
showed growth, there was an underlying decline after adjustment for exchange 
rate movements. Our customers suffered from the major European economies being 
in or close to recession, whilst strikes and the prolonged shutdowns in August 
also reduced demand. Allied, our North American business, continued to grow 
though the market remained tough. Our relatively small, but strategically 
important, businesses in Japan and China showed good growth.

Our past strategic investments are showing positive results. Our Japanese
business made its first profit in the month of September. This development, in
its fifth year of trading, was in line with our original plan. The growth of
this business demonstrates the attraction of our model to customers in this huge
market. Our Chinese operations are also breaking even. Having made preparations
in this half year, we will soon launch an exciting project to take our service
to a same day despatch, next day delivery offer in the Shanghai area, thereby
building our market leadership. e-Commerce sales grew by 44% in the half year to
reach 15% of Group sales in September, about a quarter of which we estimate to
be incremental.

During last year, we increased our selling and marketing activities to support
new growth programmes, particularly in our UK and US businesses. This investment
continued in this half year and resulted in selling and marketing costs being
about #3m higher than in the first half of last year. Our major systems projects
in Europe and Asia have entered the implementation phase with successful
"go-lives" in South Asia (March), France (June) and, most recently, Australasia.
The costs of these activities and additional depreciation triggered by the
"go-lives" were about #3m higher than in the first half of last year. This
impact will increase following further rollouts over the coming two years. These
first implementations are significant steps forward and have successfully met
our expectations, though the management challenge has been large. Importantly,
the templates that have been developed are now in operational use and are
demonstrating their ability to improve the effectiveness and productivity of our
businesses when fully exploited.

Gross margins continued to improve, particularly in our UK and continental
European businesses. The Group's gross margin reached 53.5%, up 0.9 percentage
points from the first half of last year. Operating costs have continued to be
carefully controlled.

At the end of last year, we indicated that we were reviewing our pension
arrangements, particularly as related to the defined benefit scheme in the
United Kingdom. This scheme was closed to new entrants in April 2003. Though
well funded compared to many schemes, the scheme has moved from a surplus of
#22.1m at the time of the last triennial valuation in March 2001 to a deficit
this year. As at the end of September, the estimated deficit was about #38m. FRS
17 has not been adopted, but the estimated deficit under this Standard as at the
end of September was #34m net of tax. In light of this, we have decided to
reduce the benefit afforded by the previously identified 2001 surplus. This has
increased the pension charge by #0.9m in the half year, with a similar increase
currently anticipated in the second half.

The tax rate of 29% (based on profit before tax and the amortisation of
goodwill) is the anticipated rate for this financial year and is the same as
last year.

Before amortisation of goodwill, earnings per share declined 2.2% to 7.4p from
7.6p. After amortisation of goodwill, earnings per share were flat at 6.2p.

Cash flow has continued to be robust. The conversion of operating profit (before
amortisation of goodwill) to operating cash flow remained high at 117%. This was
after a cash outflow on working capital of #3.6m, which reflected stock
increases to support the implementation of systems in France and additional
stock build in Shanghai in anticipation of launching the high service project.
Net capital expenditure reduced to #8.7m from #15.4m, including the proceeds
from the sale of a property (at book cost) of #3.1m. Tax payments, however, were
higher than in the previous year, due to a bunching of scheduled payments in
this half year. Consequently, free cash flow was again strong at #27.1m, but
below that of the first half of last year (#28.6m).

Net debt was #69.3m against #67.2m at 30 September 2002. Exchange rate
movements, particularly the weakening of the US Dollar, have benefited this
year's figure by #1.8m. The balance sheet remains strong: gearing is low and
interest cover high.

Ian Mason's report provides a more detailed review of the Group's trading.

INTERIM DIVIDEND

The Board has decided to increase the interim dividend by 6.7% to 5.60p from
5.25p. The reported earnings cover for our dividends continues to be depressed
by the trading conditions and our investment programmes, but the Group's
liquidity and cash generation is strong. The Board's dividend decisions are
based on all of these factors, together with its assessment of the Group's
medium term growth prospects.

CURRENT TRADING

Sales per day across the Group improved in September and October from the
unusually depressed levels of August and were level with last year (on a
like-for-like basis). We do not anticipate a rapid improvement in the trading
backdrop, though leading indicators, such as Purchasing Managers Indices, have
been trending upwards, albeit from low levels.

As last year, management continues to focus on achieving sales improvements
driven by our own actions, enhancing gross margins and controlling costs. We are
having success in targeting sectors outside our traditional manufacturing
customer base and we continue to expect such sectors to provide considerable
long term growth opportunities.

Our businesses remain well positioned to respond rapidly to a trading recovery
and I remain confident about the Group's medium and long term prospects for
sales and profit growth.



Bob Lawson, Chairman       5 November 2003



                          CHIEF EXECUTIVE'S STATEMENT



The Group's sales were at a level similar to the first half of last year despite
the continued difficult trading backdrop. We believe in the growth potential of
all our businesses and continue to invest in infrastructure (mainly systems) and
initiatives (mainly sales and marketing) to drive growth. We have continued to
manage the business tightly: cost control and more effective gross margin
management have partially offset the impact of the additional infrastructure and
sales and marketing spend.

UNITED KINGDOM

Sales of our UK business of #176.0m were 3.3% lower than in the first half of
last year. The decline was 1.6% after adjusting for the closure of an activity
at the end of the first half of last year. This adjusted rate of decline has
improved from 9.2% in the comparable period last year.

Our UK business continues to evolve. The task remains to replace the loss of
highly productive customers in manufacturing with more, new customers in the
growing service sectors of the economy. While these customers find our offer as
attractive as their counterparts in manufacturing, the development of their
buying frequency and breadth of purchase takes time.

Sales and marketing resources have been increased to help drive the transition.
Of the Group's additional sales and marketing investment over the first half of
last year of about #3m, two thirds has been in the UK. Our programme of building
the sales force, which commenced last year, has continued and the sales force is
now significantly larger. Territories have been restructured to make calling
patterns more efficient and customer contact more effective and frequent.
Already we have experienced a very favourable customer reaction and we are now
seeing sales growth in those territories in which the restructuring and
strengthening was first completed. The recruitment and training of the sales
force and their familiarisation with the territories will be complete during the
second half, though the full benefits will take time to realise.

In the second half of last year the catalogue circulation was increased, and
these higher levels have been maintained, whilst direct marketing has also been
increased. In this half year, our customers will have received up to four
mailings on selected campaigns. These generated high responses and an increase
in revenue compared to control groups. This is a significant increase in both
coverage and frequency compared to last year. Our direct marketing has also been
simplified and is used to introduce our offer to a very wide range of end users.

Last year we indicated our increased focus on acquiring more customers in the
growing service sectors. We have had good successes in transportation, defence
and health and our intention is to develop a broader customer base to support
our long term growth objectives.

By way of an example, sales to the hospital sector have grown over the past year
as our offer has become increasingly understood and appreciated by the targeted
end users and buyers. We have also been successful in developing our business in
selected large corporate accounts using our managed stock replenishment
capability supported by the trade counter network.

Our customer numbers have increased by 1.5% in the half year as customer gains
outweigh customer losses. This is the result of the intensified customer
acquisition activities and the successful application of our new customer
"nursery" programme.

e-Commerce continues to be an increasingly important channel to market and is
proving to be attractive to customers, with increased penetration within
existing installations and considerable demand for new installations. e-Commerce
sales increased 40% in this half year compared to last year and reached 18% of
sales in September.

Despite the sales decline and additional investment, a further improvement in
the gross margin resulted in the profit contribution to sales rising to 32.3%
from 31.4%. Excluding the #1m of closure costs charged to the UK business last
year, the improvement was 0.4 percentage points.

REST OF EUROPE

Sales in the Rest of Europe declined by 2.3% (adjusted for trading days and
exchange rate movements) to #114.3m, though the reported growth was 7.8%. The 
economic pressures were similar across all markets, with the manufacturing 
sectors facing continued difficulties, so putting pressure on our customer base.
In addition, certain countries suffered strikes that were disruptive to 
business, while the longer holiday shutdowns in August particularly impacted 
France and Italy. Germany, however, achieved some growth as did our businesses 
in Spain, Ireland and Benelux, though Scandinavia and Austria suffered declines.
e-Commerce sales continued to benefit from the investments of last year and 
increased by about 60%, reaching around 20% of sales in certain businesses.

During the half year, work has commenced on rolling out our successful Sales
Effectiveness Programme across Europe, including the UK. This programme was
developed in Asia and has been a significant enabler in driving sales, providing
another example of how we are transferring best practice around the Group.

The dissemination and application of best practice has been ensured by a more
consistent approach to marketing. For example, following the successful trial in
Italy, the French catalogue frequency has been reduced from twice a year to 
annually, commencing with the September 2003 issue. More annual catalogues have
been distributed and the remaining catalogue cost savings reallocated to other
marketing activities.

Yet another example of best practice deployment is the further improvement that
has been achieved in the gross margin. Over the last few years, we have paid
particular attention to improving all elements of the gross margin. Our emphasis
has not been on selling prices and cost prices, where changes have been similar
to previous years, but on areas where the customer also benefits. Examples
include the reduction of errors that give rise to sales credits and having much
clearer and more targeted column and customer discount structures. Thus our
gross margin in Germany has improved despite an increase in targeted customer
discounts, which have been used more effectively to drive sales.

During the half year, there was significant investment in our European
infrastructure, which is now sized to support a much bigger business.

The largest investment related to the first implementation, in France, of the
system template that we have developed for Europe, including the UK. This
implementation is part of our Europe-wide systems project that will cost over
#50m, with 80% of the cash expenditure already incurred in developing the
template and providing a robust infrastructure. The integrated template embodies
our best practices across all our internal and customer facing activities. It
also includes a customer relationship module, stock and warehouse management
applications, and the interface to our e-Commerce platform. The installation in
France took place in early June and, though there have been teething problems
reflecting its complexity, the implementation has been successful, with the
systems capability matching our expectations. The implementation has required
some additional stock and costs as we have worked with customers and suppliers
to ensure that any disruption arising from the new practices is kept to a
minimum. Implementation is planned to rollout to the UK and the other businesses
in Europe over the next two years. This timeframe allows substantial periods for
testing and training, so as to reduce the risk to customer service during the
transition.

The implementation in France has triggered additional depreciation in the half
year, the impact of which is in Process costs. The depreciation charge will
increase as further implementations take place across Europe. Meanwhile, there
is some doubling up of legacy and new system support costs that will be
eliminated as the rollout is completed.

Elsewhere, the new warehouse in Germany, to which we moved in Christmas 2002,
has been fully bedded in and productivity gains are starting to come through. In
March, we successfully moved into a larger warehouse in Spain to support
improved service levels in our growing Spanish business with more locally held
stock.

The improvements in gross margin and tight cost control resulted in the
contribution margin on sales increasing to 19.0% from 18.3%, despite the impact
of the various investments. The reported profit contribution thereby increased
11.9% to #21.7m, though adjusted to constant exchange rates the increase was
0.6%.

NORTH AMERICA

Sales in Allied, our North American business, grew by 4.2% (adjusted) to #51.2m,
though the impact of the weakening of the US Dollar gave a reported decline of
2.8%. Allied's sales resumed year-on-year growth in August 2002 and it has
continued to climb out of the trough of the electronics cycle. The general
trading backdrop in the US through this half year remained difficult. The
much-anticipated economic recovery proved to be elusive, particularly in the
manufacturing sector. Allied has had significant marketing and selling
initiatives underway to drive sales since the second half of last year. These
accounted for about one-quarter of the Group's increase in such costs in this
half year.

The strategic focus remains on enhancing the effectiveness of Allied's local
sales offices. Allied has over 60 sales offices nationwide, whose main role is
to gain business from customers in their area who value the local contact. This
makes Allied an effective competitor against smaller regional distributors that
cannot match Allied's product offer and service and against national
distributors that have more limited local presence.

One example of our investment in effectiveness is the rollout of a new quotation
system. Customers generally require a quotation before placing an order and the
preparation of a quotation is time-consuming for the salesman. The new system
makes the process more efficient and is now live in all the branches. The time
freed up is being used for more pro-active selling. Field salesmen who operate
externally to the branches have also been deployed and the most effective mix of
internal and external sales efforts is being established.

A further investment has been made in a new database cataloguing system that
makes the production of the annual catalogue more efficient. The product
information and descriptions are also being enhanced. Some benefits of this are
apparent in the new catalogue issued in October 2003, but the full impact will
be seen in the 2004 issue. There will also be more immediate benefits from
providing the enhanced content on Allied's internet site.

As indicated last year, Allied has expanded its offer with new products in the
electromechanical area. Some 15 important new suppliers have been attracted and
the results to date have been good.

Allied's gross margin was about two percentage points below last year due to a
number of factors. One has been the growth of "not in catalogue" sales, where
the products are not carried in stock, which provides a valuable extra service
to customers. The introduction of higher ticket price items at lower gross
margins has been another factor. The way that business is done in the United
States differs from Europe and this has had an impact too. In particular, the
order taking process is through provision of quotations, which implies more
price negotiation, especially when trading is tough. Initiatives based on the
successful improvement of gross margin in the RS businesses are being
introduced, where applicable, to Allied and should support a higher Allied gross
margin over time.

The lower gross margin and investment in selling and marketing resulted in the
contribution on sales of Allied declining to 11.3% from 15.0% last year.

JAPAN

Sales have grown by 29.5% (adjusted) to #6.3m. The continued strong growth rate
came from adding new customers, which grew by 12%, and the strong development of
ordering frequency by existing customers. Both are good pointers to continued
growth. The customer base is broad, covering most sectors of the economy and all
job functions.

e-Commerce continues to grow rapidly and in September was 39% of sales, up from
33% a year ago. Whilst direct web sales still account for the majority of our
e-Commerce sales, there has been strong growth in the half year through our
PurchasingManagerTM application.

The business achieved a profit in the month of September and losses for the half
year reduced to #0.6m from #2.1m in the first half of last year. The recent
sales and profit performances highlight our potential in Japan.

REST OF WORLD

Sales in the Rest of World segment grew by 3.7% (adjusted) to #21.0m. Exchange
rates had a significant impact with the reported growth being 7.7%. The main
businesses in this segment are in Asia where the sales growth was higher, but
with significant variations across the businesses. Profitability showed a good
increase, with contribution as a percentage of sales increasing to 10.5% from
6.2% last year.

Sales in China grew by 10.3% (adjusted), overcoming the impact of import
compliance regulations though more restrictions are expected. The new catalogue
of 26,500 compliant products launched in April has been positively received.
Plans to launch a ground breaking same day despatch service offer in the
Shanghai area were delayed by the SARS outbreak earlier in the year, but are now
back on track. The launch will be in the second half. Our businesses in Hong
Kong and Taiwan have suffered from the local economic difficulties, but returned
to growth in the half year. Our China-related businesses broke even in the half
year.

Our profitable businesses in Australasia again had good sales growth. In early
October, the Asia systems template was successfully implemented.

In South Asia, sales declined against last year but profits were maintained. The
first implementation of the Asia systems template took place in March and this 
required significant management support during the half year. The functionally 
rich internet trading platform used in Europe has been introduced in South Asia 
over the past three months and customer reaction has been excellent. Rollout to 
Australasia and North Asia is planned to take place in the second half.

E-COMMERCE

The Group's e-Commerce sales were #51.1m, up 44% (adjusted) on the first half of
last year. In September, they represented 15% of sales.

We have continued to rollout our most advanced e-Commerce capabilities to
enhance the existing trading sites. The most recent investment has been in Asia
as noted above. In addition, the new functionality has been made available to
our third party distributors. We now serve over 70 markets with our common
platform, which provides significant advantages in managing our overall
e-Commerce offer and introducing new developments.

The e-Commerce market continues to evolve, though the majority of our e-Commerce
sales are still from customers browsing and ordering on our internet sites.
Sales growth from our e-Procurement capabilities is strong, but has been
exceeded by the growth through our PurchasingManagerTM application. More
than 600 customers are now active in implementing this application, with the
majority of these rolling it out across their businesses. Customers find this
application a workable and effective tool for controlling their purchases of
small order maintenance and development items and for reducing transaction
costs. We continue to develop the functionality of PurchasingManagerTM in
response to positive customer feedback.

PROCESSES

Reported Process costs increased 8.7% to #39.9m from #36.7m last year. The main
reason for this was the #3m increase in systems depreciation and costs. Process
costs are carefully controlled and are flattening as a percentage of sales,
excluding project driven costs.

Through the half year, stock management was again strong and overall service
levels improved. Additional stock was held to support customer service levels in
the businesses implementing new systems and also to support the Shanghai same
day offer project. This resulted in stock being #4.1m higher than at the year
end. Stock turn of 2.5x was slightly below last year (2.6x).

Elsewhere, much work is being done in Product Management on reviewing the
structure of our product offer and the results to date imply that our offer in
the UK, for example, is likely to reduce in size from the current 133,000
products over the coming years.

SUMMARY

Trading has remained difficult through this half year, but we have continued
with our investment programmes. Our increased selling and marketing activities
and the systems implementations provide testimony to our belief in the potential
of our businesses. The successes of our e-Commerce activities and of our
business in Japan show that past investments are now starting to pay back. I do
not anticipate a quick improvement in our trading environment, but remain
confident in and committed to realising the opportunities available to the
Group.

Ian Mason, Group Chief Executive     5 November 2003



                              CONSOLIDATED RESULTS



                                   6 months to    6 months to      Year to
                                     30.9.2003      30.9.2002    31.3.2003
                                   (unaudited)    (unaudited)    (audited)
                            Note            #m             #m           #m
---------------------------------------------------------------------------
    Turnover                   1         368.8          365.3        743.7
---------------------------------------------------------------------------
    Operating profit
     - before amortisation
     of goodwill                          46.0           46.8        102.1
     - amortisation of goodwill           (5.4)          (5.8)       (11.3)
---------------------------------------------------------------------------
                               1          40.6           41.0         90.8
    Net interest payable                  (0.7)          (0.5)        (1.2)
---------------------------------------------------------------------------
    Profit on ordinary activities
    before taxation                       39.9           40.5         89.6
---------------------------------------------------------------------------
    Profit before taxation and
    amortisation of goodwill              45.3           46.3        100.9
---------------------------------------------------------------------------
    Taxation on profit on
    ordinary activities        2         (13.1)         (13.4)       (29.3)
---------------------------------------------------------------------------
    Profit on ordinary
    activities after taxation             26.8           27.1         60.3

    Interim dividend                     (24.3)         (22.8)       (22.8)
    Final dividend                           -              -        (51.1)
---------------------------------------------------------------------------
    Retained profit (loss) for
    the period                             2.5            4.3        (13.6)
---------------------------------------------------------------------------



    RECOGNISED GAINS AND LOSSES
---------------------------------------------------------------------------
    Profit on ordinary 
    activities after taxation             26.8           27.1         60.3
    Translation differences               (7.3)         (18.7)       (10.8)
---------------------------------------------------------------------------
    Total recognised gains and
    losses                                19.5            8.4         49.5
---------------------------------------------------------------------------



    PER SHARE INFORMATION
---------------------------------------------------------------------------
    Basic earnings per share
       Before amortisation of
       goodwill                3           7.4p           7.6p        16.5p
       After amortisation of
       goodwill                3           6.2p           6.2p        13.9p
---------------------------------------------------------------------------
    Dividend per share
       Interim                 4           5.60p          5.25p        5.25p
       Final                                                          11.75p
---------------------------------------------------------------------------



                              GROUP BALANCE SHEET



                                     30.9.2003      30.9.2002    31.3.2003
                                   (unaudited)    (unaudited)    (audited)
                            Note            #m             #m           #m
---------------------------------------------------------------------------
   Fixed assets
   Intangible fixed assets - 
   goodwill                              162.9           183.2       176.6
   Tangible fixed assets                 167.3           160.8       170.1
   Investments                             1.6             1.8         1.6
---------------------------------------------------------------------------
                                         331.8           345.8       348.3
---------------------------------------------------------------------------

   Current assets
   Stocks                                138.2           137.2       134.1
   Debtors                               141.3           138.3       146.8
   Investments                            11.0             7.0        23.8
   Cash at bank and in hand                9.4             2.3         2.9
---------------------------------------------------------------------------
                                         299.9           284.8       307.6

   Creditors: amounts falling
   due within one year                  (157.7)         (138.3)     (204.6)
---------------------------------------------------------------------------
   Net current assets                    142.2           146.5       103.0
---------------------------------------------------------------------------
   Total assets less current
   liabilities                           474.0           492.3       451.3

   Creditors: amounts falling
   due after more than one year          (82.2)          (84.9)      (54.0)
   Provisions for liabilities
   and charges                            (8.3)           (9.3)       (9.1)
---------------------------------------------------------------------------
                                         383.5           398.1       388.2
---------------------------------------------------------------------------

   Capital and reserves
   Called-up share capital                43.5            43.5        43.5
   Share premium account                  38.4            38.2        38.3
   Profit and loss account               301.6           316.4       306.4
---------------------------------------------------------------------------
   Equity shareholders' funds  5         383.5           398.1       388.2
---------------------------------------------------------------------------



                        CONSOLIDATED CASH FLOW STATEMENT



                                   6 months to    6 months to      Year to
                                     30.9.2003      30.9.2002    31.3.2003
                                   (unaudited)    (unaudited)    (audited)
                            Note            #m              #m          #m
---------------------------------------------------------------------------
Net cash inflow from
operating activities                      53.6            59.2       133.6

Returns on investments and
servicing of finance                      (0.7)           (0.5)       (1.2)

Taxation                                 (17.1)          (14.7)      (31.5)

Capital expenditure and
financial investment:
Net additions to fixed assets             (8.7)          (15.4)      (33.4)
Receipt of capital grants                    -               -         0.7
---------------------------------------------------------------------------
Free cash flow                            27.1            28.6        68.2

Equity dividends paid                    (51.1)          (47.8)      (70.6)
---------------------------------------------------------------------------
Cash outflow before use of
liquid resources and financing           (24.0)          (19.2)       (2.4)

Management of liquid resources            13.1             9.7        (5.1)

Financing:
Shares                                     0.1             0.4         0.5
Loans                                     17.0             7.2         3.9
---------------------------------------------------------------------------
Increase (decrease) in cash    6           6.2            (1.9)       (3.1)
---------------------------------------------------------------------------



Reconciliation of operating profit to net cash inflow from operating activities
---------------------------------------------------------------------------
Operating profit                          40.6            41.0        90.8
Amortisation of goodwill                   5.4             5.8        11.3
Depreciation and other
amortisation                              11.2             9.7        19.1
(Increase) decrease in stocks             (4.2)           (4.2)        2.7
Decrease (increase) in debtors             4.0             6.3        (0.2)
(Decrease) increase in creditors          (3.4)            0.6         9.9
---------------------------------------------------------------------------
Net cash inflow from operating 
activities                                53.6            59.2       133.6
---------------------------------------------------------------------------



                         NOTES TO THE INTERIM STATEMENT



                                   6 months to    6 months to      Year to
                                     30.9.2003      30.9.2002    31.3.2003
                                   (unaudited)    (unaudited)    (audited)
---------------------------------------------------------------------------
1 SEGMENTAL ANALYSIS                        #m              #m          #m
---------------------------------------------------------------------------

By geographical destination
---------------------------------------------------------------------------
Turnover:  United Kingdom                169.7           175.3       353.7
           Rest of Europe                116.3           107.7       227.0
           North America                  50.8            52.4       103.2
           Japan                           6.3             5.0        11.3
           Rest of World                  25.7            24.9        48.5
---------------------------------------------------------------------------
                                         368.8           365.3       743.7
---------------------------------------------------------------------------

By geographical origin
---------------------------------------------------------------------------

Turnover:  United Kingdom                176.0           182.1       366.9
           Rest of Europe                114.3           106.0       224.3
           North America                  51.2            52.7       103.4
           Japan                           6.3             5.0        11.3
           Rest of World                  21.0            19.5        37.8
---------------------------------------------------------------------------
                                         368.8           365.3       743.7
---------------------------------------------------------------------------

Operating
profit:    United Kingdom                 56.8            57.1       119.1
           Rest of Europe                 21.7            19.4        44.1
           North America                   5.8             7.9        14.4
           Japan                          (0.6)           (2.1)       (3.3)
           Rest of World                   2.2             1.2         2.4
---------------------------------------------------------------------------
           Contribution - before   
           amortisation of goodwill       85.9            83.5       176.7

           Groupwide process costs       (39.9)          (36.7)      (74.6)

           Amortisation of goodwill
           - Allied (North America)       (5.3)           (5.7)      (11.1)
           - RS Norway (Rest of Europe)   (0.1)           (0.1)       (0.2)
---------------------------------------------------------------------------
                                          40.6            41.0        90.8
---------------------------------------------------------------------------

By geographical location
---------------------------------------------------------------------------

Net        
Assets:    United Kingdom                212.6           210.6       219.9
           Rest of Europe                 73.8            68.4        70.4
           North America                  26.3            28.8        26.5
           Japan                           3.1             3.9         1.7
           Rest of World                  25.1            24.7        22.0
---------------------------------------------------------------------------
           Net operating assets          340.9           336.4       340.5

           Net debt                      (69.3)          (67.2)      (46.9)

           Unallocated net assets        111.9           128.9        94.6
---------------------------------------------------------------------------
                                         383.5           398.1       388.2
---------------------------------------------------------------------------

Unallocated net assets comprise:

           Intangible fixed assets:
           Goodwill - Allied (North     
           America)                      162.3           182.4       175.9
           Goodwill - RS Norway
           (Rest of Europe)                0.6             0.8         0.7

           Corporate tax                 (18.4)          (22.2)      (21.8)

           Proposed dividend             (24.3)          (22.8)      (51.1)

           Provisions for liabilities   
           and charges                    (8.3)           (9.3)       (9.1)
---------------------------------------------------------------------------
                                         111.9           128.9        94.6
---------------------------------------------------------------------------



                                   6 months to    6 months to      Year to
                                     30.9.2003      30.9.2002    31.3.2003
                                   (unaudited)    (unaudited)    (audited)
---------------------------------------------------------------------------
2 TAXATION ON THE PROFIT OF THE GROUP       #m             #m           #m
---------------------------------------------------------------------------
United Kingdom taxation                   10.9            9.6         21.8

Overseas taxation                          2.2            3.8          7.5
---------------------------------------------------------------------------
                                          13.1           13.4         29.3
---------------------------------------------------------------------------



                                   6 months to    6 months to      Year to
                                     30.9.2003      30.9.2002    31.3.2003
                                   (unaudited)    (unaudited)    (audited)
---------------------------------------------------------------------------
3 EARNINGS PER SHARE                        #m             #m           #m
---------------------------------------------------------------------------
Profit on ordinary activities after
taxation                                  26.8           27.1         60.3

Amortisation of goodwill (excluding
tax effect)                                5.4            5.8         11.3
---------------------------------------------------------------------------
Profit on ordinary activities after
taxation and before amortisation of
goodwill                                  32.2           32.9         71.6
---------------------------------------------------------------------------

Weighted average number of shares        434.9m         434.7m       434.8m

---------------------------------------------------------------------------

Basic earnings per share:
Before amortisation of goodwill            7.4p           7.6p        16.5p
After amortisation of goodwill             6.2p           6.2p        13.9p
---------------------------------------------------------------------------



---------------------------------------------------------------------------
4 INTERIM DIVIDEND
---------------------------------------------------------------------------

The timetable for the payment of the interim dividend is:

Ex-dividend date          17 December 2003

Dividend record date      19 December 2003

Dividend payment date     22 January 2004



                                   6 months to    6 months to      Year to
                                     30.9.2003      30.9.2002    31.3.2003
                                   (unaudited)    (unaudited)    (audited)
---------------------------------------------------------------------------
5 RECONCILIATION OF MOVEMENTS
IN SHAREHOLDERS' FUNDS                      #m             #m           #m
---------------------------------------------------------------------------
Profit for the period                     26.8           27.1         60.3

Dividends                                (24.3)         (22.8)       (73.9)
---------------------------------------------------------------------------
Retained profit (loss) for the
period                                     2.5            4.3        (13.6)

Translation differences                   (7.3)         (18.7)       (10.8)

New share capital subscribed               0.1            0.4          0.5
---------------------------------------------------------------------------
Net reduction to equity                   (4.7)         (14.0)       (23.9)

Equity shareholders' funds at
the beginning of the period              388.2          412.1        412.1
---------------------------------------------------------------------------
Equity shareholders' funds at
the end of the period                    383.5          398.1        388.2
---------------------------------------------------------------------------



                                   6 months to    6 months to      Year to
                                     30.9.2003      30.9.2002    31.3.2003
                                   (unaudited)    (unaudited)    (audited)
---------------------------------------------------------------------------
6 RECONCILIATION OF NET CASH
FLOW TO MOVEMENT IN NET DEBT                #m             #m           #m
---------------------------------------------------------------------------

Increase (decrease) in cash                6.2           (1.9)        (3.1)

Management of liquid resources           (13.1)          (9.7)         5.1

Financing - loans                        (17.0)          (7.2)        (3.9)
---------------------------------------------------------------------------
Change in net debt relating to
cash flows                               (23.9)         (18.8)        (1.9)

Translation differences                    1.5            4.6          8.0
---------------------------------------------------------------------------

Movement in net debt for the
period                                   (22.4)         (14.2)         6.1

Net debt at the beginning of the
period                                   (46.9)         (53.0)       (53.0)
---------------------------------------------------------------------------
Net debt at the end of the
period                                   (69.3)         (67.2)       (46.9)
---------------------------------------------------------------------------

Net debt at the end of the period comprises:

Cash at bank and in hand                   9.4            2.3          2.9
Overdrafts                                (0.9)          (1.0)        (0.3)
Current instalments of loans             (22.2)         (25.0)       (29.0)
Loans repayable after more than
one year                                 (66.6)         (50.5)       (44.3)
Current asset investments                 11.0            7.0         23.8
---------------------------------------------------------------------------
                                         (69.3)         (67.2)       (46.9)
---------------------------------------------------------------------------



                                   6 months to    6 months to      Year to
                                     30.9.2003      30.9.2002    31.3.2003
---------------------------------------------------------------------------
7 Principal exchange rates         
---------------------------------------------------------------------------
Average for the period

United States Dollar                       1.62           1.51         1.54
Euro                                       1.43           1.59         1.56
Japanese Yen                                190            186          188
---------------------------------------------------------------------------
                                     30.9.2003      30.9.2002    31.3.2003
---------------------------------------------------------------------------
Period end

United States Dollar                       1.66           1.57         1.58
Euro                                       1.43           1.59         1.45
Japanese Yen                                185            191          187
---------------------------------------------------------------------------



8 BASIS OF PREPARATION

The financial information has been prepared under the historical cost convention
and in accordance with applicable accounting standards, using the accounting
policies set out in the Annual Report for the year ended 31 March 2003.

The financial information included in this document does not comprise statutory
accounts within the meaning of Section 240 of Companies Act 1985. The statutory
accounts for the year to 31 March 2003 have been filed with the Registrar of
Companies. The report of the auditors was unqualified and did not contain a
statement under Section 237 (2) or (3) of the Companies Act 1985. The interim
financial information is unaudited but has been subject to a limited review by
KPMG Audit Plc.



      INDEPENDENT REVIEW REPORT BY KPMG AUDIT PLC TO ELECTROCOMPONENTS PLC
                                        


INTRODUCTION

We have been instructed by the Company to review the financial information which
comprises the Consolidated results, Group balance sheet, Consolidated cash flow
statement and notes 1 to 8 and we have read the other information contained in
the Interim Report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the Company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Company for
our review work, for this report, or for the conclusions we have reached.

DIRECTORS' RESPONSIBILITY

The Interim Report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the Interim Report in accordance with the Listing
Rules which require that the accounting policies and presentation applied to the
interim figures should be consistent with those applied in preparing the
preceding annual accounts except where they are to be changed in the next annual
accounts in which case any changes, and the reasons for them, are to be
disclosed.

REVIEW WORK PERFORMED

We conducted our review in accordance with guidance contained in Bulletin 1999/
4: Review of interim financial information issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making
enquiries of Group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially less
in scope than an audit performed in accordance with Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly, we do
not express an audit opinion on the financial information.

REVIEW CONCLUSION


On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2003.


KPMG Audit Plc

Chartered Accountants

London

5 November 2003



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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