- Electrocomponents is expanding beyond distribution into higher margin value-added services
- The fragmented global market should throw up more opportunities for earnings boosting acquisitions
Competes in fragmented markets
Profit margins improving
Fund manager pick
Recent cost pressures
Founded in 1937 as a business selling spare parts for radios, Electrocomponents (ECM) has become one of the world’s leading distributors of industrial and electronic products. Working with more than 2,500 suppliers, the group stocks over 650,000 items, acting as a ‘one-stop shop’ for designers, builders and maintainers of industrial equipment and operations. Its 1.2m-plus customers come from a wide variety of sectors – running the gamut from healthcare to mining – and it provides them with everything from calibration instruments to personal protective equipment (PPE).