Executive Summary

Electrocomponents distributes a wide range of products to development and maintenance engineers in all types of businesses around the world. We offer our customers unrivalled choice, support and reliability underpinned by an unrelenting commitment to service. This is reflected in our continued financial success. Our strategy is simple: to exceed the expectations of customers everywhere with our service levels and product offer; to exploit new opportunities through electronic trading; to develop new markets by rolling out our business model worldwide; and we do all of this with the support of our established process infrastructure and expertise. The Electrocomponents Group consists of the RS companies (operating in 24 countries and serving over 160 around the world through third-party distributors) and Allied Electronics (in the USA and Canada). RS is also known as Radiospares (France), Radionics (Ireland) and Amidata (Spain). The RS business model operates consistently around the world: Allied, acquired in 1999, has a similar model. All businesses sell through catalogues on paper and CD-Rom and via the Internet. Our market-leading levels of service differentiate us from high-volume distributors, and allow us to make consistently high gross margins across the Group. The RS businesses typically have 50% gross margins from an average T?80 order value. We offer over 350,000 products, and the very high number of small-value orders they generate, together with the high service levels we offer, makes heavy investment in facilities and systems vital. This investment and the trust that our customers have gained in our RS and Allied brands over many years make considerable barriers to entry.

 

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