Insider Media Limited

RS Components, which has 650 staff at its Nuneaton factory, has reported a 58 per cent hike in pre-tax profit. Its UK general manager Paul Quested told Insider that the business is looking to drive growth by "seeking market opportunities".

The electronics distributor said increased sales and "improved cost leverage" have been behind its results.

In its latest accounts, covering the 12 months to 31 March 2011, RS reported turnover at £578.8m - up from £485.7m in 2010.

Pre-tax profit was also up from £26.2m to £41.3m with its number of employees rising from 2,642 to 2,756.

Quested told Insider: "RS Components has seen sustainable growth in the UK over the last six months.

"This is on the back of delivering double digit growth and profit above pre-recession levels for the year ending March 2011.

"We have done this by leveraging our group offer and developing new incremental revenue streams, balanced with managing margin and cost.

"Our local workforce have been instrumental in delivering these results. We will continue to drive growth through seeking market opportunities and delivering our UK strategy."

The company's directors' report said increased sales, because of improving economic activity in the business' operaitng regions, and "improved cost leverage" were behind the company's performance up to March 2011.

The business comprises operations in the UK, Japan, Taiwan and South Africa and is a subsidiary of the Elecrocomponents business.

It said it would be introducing further electronics and maintenance products while boosting its online retail offering.

RS said no dividend would be paid for the 2010/11 year and there were 64 days if billings from suppliers outstanding at the end of the year.

The company added it faced risks from Far East currencies and competitive pressures and changes in its manufacturing base could lead to lower sales.