The Raspberry Pi distributor provides a solid trading update.
Shares in Electrocomponents (LSE: ECM) climbed almost 3% this morning following an encouraging trading update. At the current share price of 200p, the shares are valued at 10 times forward earnings.
The company, which operates under the RS Components and Allied Electronics banners in the UK and the US respectively, said UK sales grew 5% -- of which 2% was accounted for by the revolutionary Raspberry Pi.
The Raspberry Pi is a low-cost, credit card-sized, single-board computer designed and developed by the Raspberry Pi Foundation. It also includes an ARM Holdings (LSE: ARM) 700MHz processor. The Raspberry Pi charity was established to promote the development of computer development skills in education across the world.
Electrocomponents said: "Sales are at a similar level to last year despite strong comparators and a challenging economic environment. We are mindful of the macroeconomic environment and, as we have demonstrated in previous years, we are able to respond quickly to changing conditions."
The company added: "We are well positioned compared to the numerous, smaller distributors against whom we primarily compete, who do not have the advantage of our global scale and reach. We are therefore continuing to invest in our strategic priorities to leverage these advantages."
Income investors should be reassured by Electrocomponents' heartening first-quarter numbers. The prospective 6% yield, which is expected to be covered 1.5 times by forward earnings, looks intact for 2013.
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> David does not own shares in any of the companies mentioned.