International Management Centre
5000 Oxford Business Park South
Oxford OX4 2BH
United Kingdom
t: (44) (0) 1865 204000
f: (44) (0) 1865 207400
Electrocomponents plc
For more information please visit our website
www.electrocomponents.com
Electrocomponents plc Annual Report and Accounts 2005
Electrocomponents plc Annual Report and Accounts 2005
“FOCUSED ON STRENGTHS”
Ian Mason
Chief Executive
   For more information please visit our website
www.electrocomponents.com
Contents
1 Group Financial Highlights
2 Chairman’s Statement
4 Chief Executive’s Review
6 Operating and Financial Review
20 Board of Directors
22 Report of the Directors
28 Remuneration Report
34 Directors’ responsibility 
for the ﬁnancial statements
35 Report of the Auditors
36 Consolidated proﬁt and loss account
37 Balance sheets
38 Consolidated cash ﬂow statement
39 Principal accounting policies
41 Notes to the consolidated accounts
58 Five year record
59 Notice of Annual General Meeting
60 Principal locations
6 1 Registered ofﬁce, advisers 
and ﬁnancial calendar
We are focusing on our strengths in our
Electronic and Electromechanical and 
Convenient and Urgent offers in all the
markets we serve
Produced by Black Sun Plc
Printed by Royle Corporate Print
Photography by Dean Belcher
This Annual Report is printed on paper 
produced from totally chlorine free pulp, 
and from fully sustainable forests.
Registered ofﬁce, advisers and ﬁnancial calendar
Registered ofﬁce
Electrocomponents plc
International Management Centre
5000 Oxford Business Park South
Oxford OX4 2BH
United Kingdom
Tel: (44) (0) 1865 204000
Fax: (44) (0) 1865 207400
Website: www.electrocomponents.com
Financial calendar
Announcement of results
The results of the Group are normally published at the following times.
Interim report for the six months to 30 September in early November.
Preliminary announcement for the year to 31 March in late May.
Report and Accounts for the year to 31 March in June.
Dividend payments
Current policy is to make dividend payments at the following times:
Interim dividend in January.
Final dividend in July.
2005 ﬁnal dividend
Ex-dividend date 22 June 
Record date 24 June
Annual General Meeting 15 July
Dividend paid 22 July
Advisers
Auditors
KPMG Audit Plc
PO Box 695, 8 Salisbury Square
London EC4Y 8BB
Merchant Bankers
Citigroup
Citigroup Centre
33 Canada Square
Canary Wharf
London E14 5LB
Registrars and transfer ofﬁce
Lloyds TSB Registrars
The Causeway
Worthing 
West Sussex BN99 6DA
Solicitors
Norton Rose
Kempson House
Camomile Street
London EC3A 7AN
Stockbrokers
UBS 
1 Finsbury Avenue
London EC2M 2PP
Shareholder Services
Shareview
A website, www.shareview.co.uk, has been developed by Lloyds TSB
Registrars, the Company’s registrar, enabling shareholders to access
shareholdings online. The website provides information useful to the
management of investments together with an extensive schedule of
frequently asked questions.
In order to view shareholdings the shareholder reference number is
required which can be found at the top of share certificates or on the 
last dividend tax voucher.
Electrocomponents plc Annual Report and Accounts 2005 61
Registered ofﬁce, advisers and ﬁnancial calendar 01 02 03 04 05
759.3
773.9
743.7
759.6
823.9
Turnover of continuing operations (£m)
01 02 03 04 05
108.5
105.3
102.3
108.7
130.9
Operating profit of continuing 
operations* (£m)
01 02 03 04 05
17.5
17.0
16.5
17.3
20.2
Earnings per share*
†
(pence)
01 02 03 04 05
19.1
14.0
15.7
18.8
18.1
Free cash flow per share (pence)
01 02 03 04 05
18.2
18.4
17.0
15.9
13.8
Dividends per share (pence)
01 02 03 04 05
107.1
104.4
101.1
105.5
124.1
Profit before tax*
†
(£m)
Group turnover by destination
Rest of World
Japan
North America
Rest of Europe
UK
France
Distributors
Benelux
Ireland
Spain
Scandinavia
Austria
Italy
Germany
RS Rest of Europe turnover
Australasia
Other
Chile
South Africa
South Asia
Distributors
North Asia
RS Rest of World turnover
Group Financial Highlights
Electrocomponents plc Annual Report and Accounts 2005 1
Group Financial Highlights
2005 2004
#
%
Turnover £773.9m £759.3m +4.5
Operating proﬁt
*
£105.3m £108.3m -1.7
Proﬁt before tax
*
£104.4m £107 .1m -1.2
Earnings per share
*
1 7 .0p 1 7 .5p -2.9
Free cash ﬂow per share 1 4.0p 19.1p -26.7
Dividends per share 18.4p 18.2p +1.1
* Before amortisation of goodwill. # As restated for the implementation of UITF 38: Accounting for ESOP Trusts. † 2001: Before exceptional loss on closure. 
Definitions of terms:
In order to reflect underlying business performance, comparisons of sales and profits between periods have been adjusted as follows unless otherwise stated: 
• changes in sales are adjusted for exchange rates and the number of trading days; 
• changes in profits are adjusted for exchange rates and for the prior year restatement for the adoption of UITF 38 (Accounting for ESOP Trusts); and 
• changes in cash flow, debt and share related measures, such as earnings per share, are at reported exchange rates.
  consistent proﬁt growth would permit 
most of the earnings and cash ﬂow to be
distributed as dividend. Proﬁts have not
developed as expected, particularly in 
the UK and Europe, and in light of the
strategic review the dividend policy has 
been reassessed. 
The Board recognises the importance of
dividends to shareholders and is conﬁdent
that the successful implementation of the
Enterprise Business Systems (EBS),
execution of the strategy and cost reduction
initiatives will signiﬁcantly improve ﬁnancial
performance over the next three years.
Consequently, assuming no substantial
deterioration in economic conditions, the
Board has decided that it should maintain the
current level of dividend during these three
years. To the extent necessary, the strength
of the balance sheet will be used to support
the dividend. 
Our people
Our staff have experienced a demanding
year. The reason that customers place
business with us is service excellence and
this relies on the attention and commitment
of each member of staff. The award received,
Chairman’s Statement
2 Electrocomponents plc Annual Report and Accounts 2005
Chairman’s Statement
We remain committed to generating high
returns for shareholders over time as a result 
of past investments and the developments 
now in progress.
Bob Lawson, Chairman
The sales growth experienced in the ﬁrst half
of the year weakened in the second half
which resulted in a small decline in operating
proﬁt for the year of 1.7% to £105.3m from 
a sales increase of 4.5% to £773.9m.
Our view is that our markets,
particularly in Europe, have become
markedly more difﬁcult. Your Group will
therefore increasingly focus on serving the
small quantity needs of the electronics
engineer together with a broad offer for other
engineering disciplines. Our market position
in the electronics sector globally is our core
strength as reﬂected by the Distributor of 
the Year award. However we can exploit 
this strength to a much greater extent as, 
I believe, will be demonstrated during the
coming years.
Dividend
The Board recommends that the ﬁnal dividend
per share for the year be the same as last
year (1 2.6p) to give 18.4p for the full year, 
an increase of 1.1%. 
Dividend growth in recent years has
been based on our view that the high cash
generation of the Group, the strong balance
sheet and the expectation of reasonably
WHERE WE ARE,
WORLDWIDE
RS BUSINESSES:
United Kingdom
Rest of Europe
France, Germany, Italy, Austria, Spain, 
Republic of Ireland, Denmark, Sweden, Norway, 
The Netherlands, Belgium
Japan
Rest of World
Australia, China, Hong Kong, Singapore, 
South Africa, T aiwan, Malaysia, New Zealand, 
The Philippines, India, Chile
ALLIED ELECTRONICS:
North America
United States
Canada
Our Group comprises the RS
companies in 24 countries
and Allied in the United
States and Canada.  conﬁrmed by independent market research,
conﬁrms that all our people execute their
roles supremely well resulting in the service
being second to none. I am particularly
pleased that these service standards have
been maintained whilst either preparing for
or installing major system changes in many
of our major markets.
On behalf of the Board I would like to
thank each person for their contribution.
As announced on March 22nd, Jeff
Hewitt, the Group Finance Director, wishes 
to seek early retirement from the Board 
in order to develop his career beyond
executive duties.
Jeff has been Finance Director for nine
years and has played a major role in all the
Group activities from being active in strategy
execution to Y2K and the launch of the Euro.
Latterly, Jeff has played a leading role in the
development of the Groupwide Enterprise
Business Systems together with strengthening
and developing the ﬁnancial management
and investor relations activity of the Group.
Jeff has been a tremendous colleague,
catalyst and mentor to all in the Group who
have had the pleasure of working with him,
and we wish him continued success in his
new career direction.
Our search for Jeff’s replacement has
been successful, and I am delighted to
announce that Simon Boddie, Finance
Director of Key Markets for Diageo, will be
joining us on 1 July. Simon brings much
relevant experience, particularly of rapidly
changing international markets, which will be
of direct beneﬁt to the Group. Jeff will be
staying with the Group to ensure a
comprehensive handover to Simon.
It is also a great pleasure to welcome
Kevin Abbott to the Board. Kevin is CEO of
Alpha Airports and not only brings current
experience of a demanding service industry
but also a breadth of relevant international
knowledge. In the short time that Kevin 
has been on the Board, he has made 
a signiﬁcant contribution.
Governance
The Board has met 1 2 times during the year
and also visited the UK operations. In
addition, a two-day strategic review was held,
at which Regional Managers presented their
plans and priorities were agreed.
Current trading and outlook
The Board is intent on delivering a sustainable
and growing proﬁt stream. We are
announcing the next stage of the Group’s
development which will achieve the Board’s
objectives by focusing on the key customer
groups in each market served and reducing
costs. A key enabler is the Enterprise
Business System, and its implementation this
year in the UK is a major task. The Group does
have a track record of executing change well.
Since the year end, trading has
remained strong in North America, Asia,
Japan and the smaller European markets but
it has continued to be depressed in the UK
and our main European markets. The leading
indicators suggest a difﬁcult trading
environment in most of our markets and 
so we remain cautious on the outlook for 
the coming year.
We remain committed to generating
high returns for shareholders over time as 
a result of past investments and the
developments now in progress.
Bob Lawson
Chairman
Electrocomponents plc Annual Report and Accounts 2005 3
Chairman’s Statement
Operating companies
Distributor network
Export only markets
GLOBAL OPERATIONS AS % OF TOTAL GLOBAL GDP
Our operating companies cover 82% of
Global GDP and we believe that further
scope for growth exists. Overview
During the year, the Group has undertaken a
review of its strategy. Over the past ﬁve
years, while the Group has continued to
generate high returns, overall proﬁts have
remained essentially ﬂat. This has been
caused by a combination of a lack of overall
sales growth and higher costs to build our
global infrastructure. The continued decline
of RSUK and ﬂat sales in our main European
markets of France, Germany and Italy have
constrained Group sales – other markets
have shown good growth. Enterprise
Business System (EBS) implementation
costs and our investments considerably
ahead of growth have signiﬁcantly increased
our infrastructure costs. Comprehensive
customer research to understand how to
accelerate sales growth and a review of the
costs to complete, leverage and reduce our
future infrastructure costs was undertaken.
The Group Strategy has evolved accordingly.
Customer research
Customer research in the UK and Europe
generated a consistent picture across
markets. Customers view the RS brand and
service very positively, however, the
competitiveness of our broad offer has
declined as local wholesalers, in particular,
have improved their service. A better
understanding of our market position has led
us to focus on areas of competitive strength
and develop programmes to improve the
competitiveness of our offer in these areas.
Electronic and 
Electromechanical (EEM)
The Group is a primary supplier of EEM products
to R&D and maintenance engineers around the
world. These are the products and customers
our businesses were built on. Customers
recognise the Group as a leader in this
market and the catalogue is the established
primary channel to market. However, the
competitiveness of our offer has declined as we
have focused on developing other technologies
and competitors have improved their offers.
Improving the competitiveness of our EEM offer
will drive faster sales growth through the
protection of existing business from
competitive threat, and the leveraging of the
improved global offer throughout the Group. We
have considerable strength to build upon. The
EEM market available to catalogue distribution
is growing and the Group has a low share.
Chief Executive’s Review
4 Electrocomponents plc Annual Report and Accounts 2005
Chief Executive’s Review
The strategy of the Group is evolving. By focusing
on our core strengths in the EEM market we
believe we can achieve higher sales growth and
maintain high returns.
Ian Mason, Chief Executive
• with our Electronic and
Electromechanical offer
• in making our offer even 
more convenient; and
• by meeting their urgent
requirements
OUR REFOCUSED STRATEGY
WILL ENSURE WE MEET OUR
CUSTOMER NEEDS: A 10 point plan is being implemented to
improve our EEM offer. Key to this plan are
focus, improving the quality of our product
range and leveraging e-Commerce to reduce
our cost, risk and time to market. Much
greater product ranges will be made available
from key brands, and Allied products will be
made available to RS businesses.
Convenient and Urgent (C&U)
The Group drives signiﬁcant revenue from
customers who value convenience (one-
stop-shop) or have an urgent product need
(“can’t ﬁnd it”). The customer research
highlighted that local wholesalers are the
main competition in providing these needs
and that their service has improved.
Our offer will be optimised to more
effectively meet the convenience and urgent
product needs of customers. Key to this is
improving the value of the offer. Speciﬁc
opportunities to drive faster C&U growth will
be exploited, including: large accounts;
process control and automation; and local
presence strategies. The product range will
be optimised and the cost to serve reduced.
Competitiveness
As well as focusing on the EEM and C&U market
segments, actions are being undertaken, in
response to the customer research, to improve
the general competitiveness of the Group
through improving our price perception,
increasing our ﬂexibility in meeting customers’
needs, greater leverage of e-Commerce and
improving our Sales and Marketing effectiveness.
These actions will improve competitiveness
and help drive faster sales growth.
Geographic portfolio strategy 
Our businesses around the world will be
managed differently depending on their
stage of development and scale of growth
opportunity. Our UK and main European
market businesses need to perform. We will
continue to invest to develop the massive
market potentials in the US, China and 
Japan where we have strong established
businesses. The smaller markets will be 
free to develop their potential through the
continuation of their existing high growth.
The primary focus of the strategy is creating
and deploying a world-class EEM offer
through all businesses.
Infrastructure
The business is heavily engaged in
implementing EBS as the ﬁnal piece of our
global infrastructure. EBS will provide the
future operating platform of the Group and
enables future beneﬁts and cost reduction. It
is a massive project that is having a signiﬁcant
impact on the business – cost and distraction/
disruption – however, our conﬁdence is high
for a successful implementation. A fuller report
on the EBS project is included in the Operating
and Financial Review.
Plans are being developed to create a
lower cost business model over time
following the successful implementation of
EBS in the UK geography. Implementation of
the revised strategy will drive higher sales
growth and generate scale economies; EBS
implementation costs will be removed and
beneﬁts generated; and new approaches to
our main cost drivers are being planned. 
In the two years following the
implementation of EBS in the UK, the
operating costs of the Group business model
will be substantially lower.
Financial consequences
We believe the actions we are taking will lead
to a substantial improvement in the Group’s
medium term ﬁnancial performance.
The operating proﬁt impact of the EBS
implementation will peak over the next two
years and will then reduce signiﬁcantly due 
Electrocomponents plc Annual Report and Accounts 2005 5
Chief Executive’s Review
to reduced costs and to beneﬁts realisation. The
cash ﬂow impact peaks next year and then will
improve considerably as depreciation replaces
capital expenditure and cost. The successful
implementation of EBS will also enable the
strategy and other cost reduction initiatives.
We estimate that the refocusing of the
strategy on EEM and C&U markets should
generate £20-25m of additional proﬁts
annually within three years. Higher sales
growth at reasonable margins and
economies of scale from leveraging the
infrastructure will all contribute to the
improvement in proﬁtability.
Annual cost savings of £10- 15m will be
sought within the same time period from
simplifying the business structure consistent
with the strategy and the capabilities provided
by EBS. One-off costs will be incurred to make
these changes, probably over the next two
years, however it is premature to determine
the scale of these costs.
Cash ﬂow will beneﬁt from the higher
proﬁts and working capital efﬁciencies.
Summary
The strategy of the Group is evolving. By
focusing on our core strengths in the EEM
market we believe we can achieve higher
sales growth and maintain high returns. The
implementation of EBS will complete our
infrastructure build and we are conﬁdent 
of success and of subsequently migrating 
to a lower cost business model.
Ian Mason
Chief Executive
The redesigned catalogue makes it easier for our
customers to quickly ﬁnd the products they need Description and history
Electrocomponents plc is a high service
industrial distributor operating in 26
countries and selling to most of the
remaining countries of the world. The Group
offers a wide range of products representing
a one-stop shop for customers who are
typically R&D or maintenance engineers in
business. The products are of good quality
and all are generally held in stock. There is
then a highly efﬁcient delivery process to
ensure that the products are despatched the
same day that the order is received and
delivered to the customer soon after.
This product and service offer is relevant
to a wide range of customers from both
manufacturing and service sectors. Customers
know that Electrocomponents will be able to
supply all of the products that they need at
short notice. Therefore, they rely on the Group
for low value, unplanned requirements. The
average order value is generally less than
£100 but the number of customer contacts 
is very large and their demands are diverse.
This means that the Group manages tens of
thousands of orders per day.
The Group offers its products using
several different media including paper
catalogue, e-Commerce, CD-ROM and trade
counters. It also offers several channels 
via which customers can place orders
including e-Commerce, telephone, fax and 
at trade counters.
The Group started as Radiospares in
London in 1937 selling spare parts for radios.
Throughout the 1950s the product range 
was widened to include more electrical and
electronic products. In 1967 Radiospares 
was ﬂoated on the London Stock Exchange 
as Electrocomponents plc. Throughout the
1990s the Group expanded into other
markets, widened the range of product
technologies offered and increased the
number of services offered to its customers.
Almost all of the Group’s expansion has been
organic with the notable exception of Allied,
which was acquired in July 1999.
Group structure and developments
As the Group expanded internationally using
the UK business model in the 1990s, the new
businesses grew autonomously and so the
operating practices differed. To ensure more
coherence and control, the matrix
organisation was implemented in 1996 and
the Group Processes were developed to
Operating and Financial Review
6 Electrocomponents plc Annual Report and Accounts 2005
Operating and Financial Review
Operating and Financial Review Contents
6 Description and history
6 Group structure and developments
7 Markets and competition
8 Strengths and resources
9 Strategy 
9 Operating performance
13 Financial review and capital structure
1 4 e-Commerce
14 Enterprise Business System projects
16 Pension 
16 Risks
1 7 Corporate and Social Responsibility
19 International Financial Reporting Standards
Ian Mason
Group Chief Executive
Richard Butler
Chief Process Ofﬁcer
Jeff Hewitt
Deputy Chairman and Group Finance Director
BUILDING 
SERVICE 
STRENGTHS support the individual businesses. The
Processes allow the businesses to all beneﬁt
from the same expertise in product selection
and purchase, catalogue development and
production, information systems and supply
chain support giving cost and other beneﬁts.
The second step from 2000 onwards
was to align the selling and marketing
activities of each business more closely. This
reduced the divergence of the businesses
and allowed them a better sharing of
successes and experiences. This has been
combined with increased investment in
selling and marketing across the businesses.
Finally the Group has embarked on 
a project to implement new enterprise
business systems. The existing legacy
systems were largely installed in the early
1990s and just as the operating procedures
developed in different ways, so did the
systems. Similarly, the systems used in the
UK were developed for the UK business and
were not designed for the UK functioning as
the hub of an international group. A
“template” for the new Enterprise Business
System (EBS) was created from the best
practices across the Group that would allow
the Group to operate in a more integrated and
effective way than was possible with ageing
legacy systems.
This template was designed with a SAP-
centred enterprise management structure 
for Europe with a similar but more limited
framework (given the smaller businesses)
for Asia based on JD Edwards (now
Peoplesoft). The EBS Europe applications
include stock management, customer
relationship management and warehouse
management together with core ﬁnancial 
and logistics functions. The Asia EBS has
been implemented successfully in South
Asia, Australasia and Hong Kong whilst in
Europe, France was the ﬁrst implementation
with the UK next. The progress and ﬁnancial
impact of this project are discussed in detail
later in this review.
Markets and competition
The high service distribution “model” is in
very differing stages of development in the
markets in which the Group operates. The UK
market is relatively developed and customer
needs are met through several competing
distribution channels with differing service
levels. There is only one competitor to RS
offering a similar “high service” across a
broad product offer. By contrast there are
several hundred electrical wholesalers,
hundreds more industrial wholesalers and
also retailers. Customers will select which of
these alternatives offer the service that they
need at an acceptable value. Customer
research in the UK and Continental Europe
has conﬁrmed that the primary alternative to
RS for the customer is a local wholesaler. The
wholesaler will typically have a smaller range
and lower product availability, but typically
has lower costs and lower prices than the high
service providers. The wholesaler usually has
established long term relationships with their
local customers. When the wholesaler fails to
provide a product, the customer will turn to
RS. In electronic and electromechanical
products RS is more often the supplier of choice
given our strengths and the limited presence
of wholesalers in these product areas.
The wide range of customers served by
RS in the UK means that RS is affected by
trends in the wider economy. Over many
years, there has been a decline in UK
manufacturing, offset by the growth of the
service sector and this has been mirrored in
the sales mix of RS UK. A typical situation for
RS has been the loss of a long standing, loyal,
manufacturing customer who has purchased
regularly, sometimes daily. The customers in
the manufacturing and service sectors have
similar needs and a large part of the product
range is equally relevant to both sectors.
However, a new customer takes time to
become as loyal and to order as frequently 
as the established customer who may have
lost their job. Therefore, although customer
numbers may not change signiﬁcantly, the
average number of orders placed by
customers will fall and so sales decline 
until the order frequency is rebuilt. 
Continental Europe represents an
opportunity for signiﬁcant growth as our
sales would have to increase sevenfold to
Electrocomponents plc Annual Report and Accounts 2005 7
Operating and Financial Review
Our strategic 
development
GEOGRAPHIC 
EXPANSION
• 1 -26 countries
• 1990’s
PROCESS AND MATRIX
ORGANISATION
• Processes
• 1996-2000
GROUP MARKETING
STRATEGY
• alignment and sharing
• sales and marketing
investment
• 2000-
ENTERPRISE
BUSINESS SYSTEMS
• new infrastructure
• integrated system
• new capabilities
• 2000-
MAKING CUSTOMER CHOICE EASY:
> CATALOGUES > E-COMMERCE > TRADE COUNTERS > CD ROMS reach the same level relative to the regional
Gross Domestic Product as achieved by 
RS in the UK. Our actual sales growth in
recent years has been hampered by similar
forces to those experienced in the UK,
notably the general decline of manufacturing.
Whilst catalogue distribution is already 
well adopted in the electronic sector,
electrical and industrial products are
traditionally served by wholesalers and 
more specialised distributors who operate 
in speciﬁc countries. 
In North America there is a distinct split
between the distribution of electronic and
electrical products and industrial products.
Allied operates primarily within the
electronic/electrical market where there 
are four national catalogue distribution
companies, of which Allied is the third largest.
However, Allied also competes with about a
thousand smaller, local or narrow distributors.
Again the basis of competition is service
where the extensive local sales branch
network of Allied, supported by a large
product offer and good logistics, are
important advantages.
Before we rolled out the RS model to
Japan in 1999, the concept of small-order
high-service distribution did not exist in that
market. There were isolated high service
suppliers although these were generally 
only supplying product made within their
groups. More often, manufacturers wishing 
to supply to customers ordering small
quantities of product had to use the multi-
layered wholesaler network. The business
model offered by RS short-circuited much 
of this layered distribution network, but
required a highly reliable service from the
launch of the business. So far the Group
remains the only signiﬁcant business able 
to provide this service offer which has
achieved considerable customer acceptance
and success.
In Asia, our markets continue to develop but
these are very much less developed than in
Europe. In China there is very rapid market
change driven by both high industrial growth
and signiﬁcant changes in regulation and
therefore the way that business should be
carried out. We place great importance on
working with the authorities to ensure not
only compliance, but also the development 
of practices that beneﬁt the local economy.
This has placed the Group in good stead and
supports the building of a robust and secure
business. The advantage of our position is
made manifest by the way that our importing
and order despatch procedures have been
simpliﬁed compared to many companies.
There are few companies competing with 
our type of product and service offer. The
launch and roll out of our Same Day Offer 
will make it even more difﬁcult for new
followers to compete. 
Strengths and resources
Brands
The Group has several major brands
worldwide. The most signiﬁcant brand 
is “RS” which is used all over the world 
except for North America (“Allied”) and
France (“Radiospares”) where there 
are restrictions on our use of the brand 
name “RS”. All of these brands are long
standing and market leading so brand
recognition and brand loyalty in our
customer base is high.
The Group carries out market research
regularly, but in the past year we have 
more intensively surveyed our European
customers. The results provide a consistent
picture of how customers view the RS brand
and gives clear conﬁrmation of its strengths.
Our scores on service, speed of delivery,
product availability and “never letting 
the customer down” are market leading.
Competitors are rated less highly on 
service, but are perceived to be less
expensive. RS has its strongest presence
with electronics engineers who buy
electronic and related products.
Supplier relationships 
Our relationships with our suppliers are 
a key strength in allowing us to maintain 
the high standards of product availability 
and supply for our customers. Through our
Product Management process we purchase
over 350,000 products from around 2,400
major suppliers throughout the world. Our
Supply Chain process is then responsible 
for ensuring that stock is in the right place 
at the right time to satisfy customer demand
and has built up considerable “know how” 
to achieve high service levels.
Our reach to R&D and maintenance
engineers is very valuable to suppliers 
as otherwise the small order requirements 
of such customers are difﬁcult and costly 
to satisfy.
We agree integrated media and
marketing campaigns with suppliers 
to support agreed sales and customer
development activities proactively
exchanging information to ensure that we 
are meeting our customers’ expectations. 
Customer relationships
The breadth of our service and product offer
means that we supply to a wide range of
customers from all areas of industry and
commerce. Our businesses distribute around
1.4 million catalogues and have around 1.3m
e-Commerce registrations. Of these, around
200,000 customers buy from the Group 
in any one month and around 1.2m in any 
one year. In this context a customer is an
individual end user, typically a maintenance
or R&D engineer. 
The average order value is consistent
across the RS businesses at around £80 to
8 Electrocomponents plc Annual Report and Accounts 2005
Operating and Financial Review
RS service is
rewarded by high
customer loyalty
and trust
Allied’s “Customer
First” programme
has helped drive
its growth Electrocomponents plc Annual Report and Accounts 2005 9
£100 although the range of order values 
is large. In Allied the average order value is
higher. The average order frequency of our
customers rises as the customer becomes
more established and increasing frequency
is a major goal of our selling and marketing
activities. A customer will start off, perhaps
only buying from RS once or twice per year.
Over time this increases and there are many
customers now who order regularly and often
daily. For them, the Group is an important
business partner, able to support their
irregularly purchased or urgent product
needs quickly and reliably. In the electronics
and electromechanical areas we are a lead
supplier to our customers needs for low
volume requirements. 
Customer relationships are strengthened
by our service innovations. For instance, the
e-Commerce PurchasingManager™ product
allows many end users within a customer
organisation to order and transact business
in a controlled manner. The consequence is
that the “end users” are able to beneﬁt from
the service provided by the Group whilst the
“buyers” are able to see who has ordered
what and how much it has cost and also
to reduce their transaction expense.
PurchasingManager™ is free to the customer
in return for our wider access to the end
users in the customers’ organisation.
Employees
The skill and dedication of our employees are
major strengths. We employ around 5,000
employees worldwide: about 1,700 in the 
UK operating company, 1,200 in Continental
Europe, 500 in North America, 100 in Japan,
600 in the Rest of the World and around 
900 in the Processes. The number of people
employed in the Processes is currently higher
than normal due to the systems projects.
When these projects have been completed,
the number of employees will fall. Most
employees in a business are employed in
either selling and marketing (generally more
than a half) or operations (around a third).
The skills of our employees are critical 
to the service offer, for example the ability to
quickly and accurately pick product in the
warehouse. Operational key performance
measures are used widely to monitor and
compare performances in such areas, 
whilst training provision is intensive. 
A signiﬁcant proportion of the employees 
are long serving, for example, in our UK
business the average length of service 
is about 8.5 years. 
Strategy 
As described in the Chief Executive’s 
Review, our strategy is becoming more
focused on meeting the needs of particular
customer groups. Most importantly, this 
will be reﬂected by extensively developing 
our Electronic and Electromechanical offer
(the EEM offer) to meet the needs of R&D
and maintenance engineers globally. 
This greater focus on our strengths will 
also result in reducing complexity and 
hence cost. A detailed action plan is 
being implemented.
The second focus area is in meeting 
the “convenience” and “urgency” needs of 
a broader range of industrial customers, but
with a market approach and resources that
more speciﬁcally reﬂect these needs. 
Greater speed of response to customer
needs, more ﬂexibility and lower costs are all
requirements of this strategy evolution. The
EBS systems project reviewed below provides
the critical underpinning to these capabilities. 
The Board believes that there will be a
signiﬁcant improvement in the Group’s
ﬁnancial results over the medium term as 
a result of this strategy, cost reductions 
and the EBS project.
Operating performance
Group 
2005 2004
(as restated)
Sales £773.9m £7 59.3m
Operating proﬁt* £1 05.3m £1 08.5m
Operating proﬁt £95.9m £98.3m
Interest (£0.9m) (£1.4m)
Proﬁt before tax* £1 04.4m £1 07 .1m
Proﬁt before tax £95.0m £96.9m
Earnings per share* 1 7 .0p 1 7 .5p
Earnings per share 1 4.9p 1 5.2p
Dividend per share 18.4p 18.2p
Key statistics
2005 2004
(as restated)
Gross margin % 53.2% 53.8%
Operating return 
on sales %* 1 3.6% 1 4.3%
Effective tax rate %* 29.0% 28.9%
PBT on net assets %* 31.6% 31. 1%
* Before goodwill amortisation
At reported exchange rates, Group sales
increased by 1.9% to £773.9m. Operating
proﬁt, before goodwill amortisation, fell by 2.9%
to £105.3m whilst proﬁt before taxation and
goodwill amortisation (PBT&G) fell by 2.5% to
£104.4m. Earnings per share, before goodwill
amortisation fell by 2.9% to 1 7 .0p and after
goodwill amortisation, fell by 2.0% to 14.9p.
Changes in exchange rates, particularly
the US dollar, had an impact on the Group’s
reported sales and proﬁts. At constant
exchange rates, the sales growth would have
been 4.0%; operating proﬁt decline 1.7% and
PBT&G decline 1.2%. Exchange rate changes
reduced the sales increase by £15.1m and
increased the operating proﬁt decline by
£1.4m. The number of trading days also 
had an impact on sales growth: at constant
exchange rates and adjusted for trading
days, the sales growth was 4.5%.
Trading conditions worsened in the
second half of the year with sales growth
Operating and Financial Review
ADDED VALUE SERVICES: 
INCREASING CHOICE AND LOWERING
TRANSACTION COSTS FOR CUSTOMERS falling from 5.8% in the ﬁrst half to 3.3% in the
second half. The operating proﬁt increase of
1 5.5% in the ﬁrst half reversed to a decline of
1 3.5% in the second half, an overall decline of
1.7% for the year.
The gross margin for the year was 53.2%,
0.6 percentage points below last year. This was
due partly to the changing mix of businesses
and partly to gross margin changes within the
individual companies. Allied’s sales grew faster
than the rest of the Group, but at a lower
margin (around 38%) which accounts for 
a third of the gross margin reduction. Gross
margin increased in some businesses, notably
in Continental Europe, but declined in others,
particularly in the UK.
Investment in selling and marketing was
increased in most businesses and was £7 .4m
higher than last year. The increase was mainly
in sales forces, the catalogue and direct
marketing. In addition, the redesign of the
catalogue cost £1.6m.
The EBS projects had a signiﬁcant impact
on costs and proﬁts. The proﬁt impact increased
£3.1m from £6.1m to £9.2m, as detailed below.
Process costs were £79.5m (10.3% 
of sales), compared to £77 .6m last year
(10.2% of sales). 
Pension costs increased by £2.6m during
the year entirely in the UK schemes (of which
£1.0m was in Processes and £1.6m was in 
the UK business).
Operating margins declined from 
1 4.3% last year to 1 3.6% as a result of 
the above factors. 
The interest charge of £0.9m was £0.5m
lower than last year as the Group’s Sterling
deposits were higher than last year giving
interest rate beneﬁts. The tax rate of 29%,
based on proﬁt before tax and goodwill, was
the same as last year. 
Proﬁt before tax and goodwill amortisation
was £1 04.4m, down 1.2% on last year . Earnings
per share before goodwill amortisation was
1 7 .0p, down 2.9% on last year.
In accordance with FRS 10, the goodwill
that arose on the acquisition of Allied of
£2 14.8m (at acquisition exchange rates)
is being written off over 20 years. T aken
together with the amortisation of goodwill 
on another small historical acquisition, the
total goodwill amortisation for the year was
£9.4m (last year £10.2m).
Proﬁt before tax after goodwill amortisation
was £95.0m and the effective tax rate on this
proﬁt was 31.9% to give proﬁt for the year of
£64.7m and earnings per share after goodwill
amortisation was 1 4.9p, down 2.0% on last year.
UK
2005 2004
Sales (by destination) £345.2m £348.2m
Adjusted sales growth 0.3% (0.8%)
Sales (by origin) £358.8m £36 1.0m
Adjusted sales growth 0.6% (0.9%)
Contribution £1 07 .5m £11 7 .8m
Contribution % 30.0% 32.6%
RS UK sales by origin grew by 0.6% to
£358.8m. Trading conditions declined as 
the year progressed: growth of 2.3% in the
ﬁrst half reversed to a decline of 1.0% in the
second half. February and March were poor
trading months and the business exited the
year declining at 4.5% year on year. This was
mainly due to the Easter holidays occurring in
March this year compared with April last year.
The manufacturing sector remained
weak during the year and employment in it
continued to decline. Though more sales and
marketing effort was directed to the service
and public sectors, our sales mix by sector
was unchanged on last year.
We have again increased our investment
in sales and marketing activities to increase
our coverage of customers. We believe the
larger sales force is having a positive effect:
where sales engineers have been in
territories for longest and gained local
experience, the sales performance is better.
Our promotional activities continued and the
“Britain’s Hero at Work” 2004 campaign, part
of the “Do Great Things” advertising initiative,
achieved good increases in brand awareness.
These activities helped maintain customer
numbers during the year. 
A redesigned catalogue was launched 
in October which was well received by
customers, although it remains too early 
to judge overall reaction. Over two million
additional product data attributes have been
included in the new catalogue and products
have been presented in ranges to increase
comparability and hence ease the purchase
decisions of customers. In addition, the
number of volumes was reduced from seven
to ﬁve. The Spring edition of the catalogue
has been rescheduled from March to April so
that the life of each catalogue issue remains
6 months. This rephasing also impacted
March sales and year end stock levels.
Our network of 15 trade counters
continued to perform strongly and had
double-digit sales growth during the year.
Trade counters continued to build enhanced
services such as Managed Stock
Replenishment (where RS manages the
customers’ stock at their sites supported 
by stock replenished from a local trade
counter) with the number of MSR agreements
growing by 18% over last year. 
An indication of the success of our
approach to the market was RS winning the
“Distributor of the Year” at the European
Electronic Industry Awards. This was
awarded for our success in identifying
demand for new products and our ability to
promote speciﬁc suppliers and technologies.
e-Commerce continues to perform
strongly and sales through this channel
increased by 28.7% in the year. At the year
end sales via e-Commerce were 26% of sales,
10 Electrocomponents plc Annual Report and Accounts 2005
Operating and Financial Review
ENHANCING SERVICES 
THROUGH OUR TRADE
COUNTER NETWORKS
“DISTRIBUTOR OF
THE YEAR 2004”
An indication of the success of our
approach to the market was the Group
winning this award at the 2004
European Electronic Industry Awards up from 20% at the end of last year. Wider use
of e-Commerce will lead to some cost
savings, as its proportion of the business
increases. Order taking and customer
enquiries are two areas of opportunity.
Exports from the UK to third party
distributors and direct to overseas
customers showed strong growth during 
the year, particularly in the Middle East. 
Gross margin declined on last year and
the rate of decline was higher as the year
progressed. The reasons for the decline were
selective price adjustments to improve value
perceptions, higher discounts to larger
customers, product mix (selling more high
ticket price items) and increased cost prices
(particularly from suppliers suffering from
commodity price increases). Actions are being
taken to mitigate these supplier pressures.
The proﬁt contribution fell £10.3m from
£11 7 .8m last year to £107 .5m and the margin
from 32.6% to 30.0%. The lower gross margin,
higher selling and marketing costs, increased
costs of EBS implementation and higher
contributions to the deﬁned beneﬁt pension
scheme were all factors. Notwithstanding the
proﬁt reduction, the UK business continues
to be highly proﬁtable and cash generative.
Rest of Europe
2005 2004
Sales £243.5m £2 41 . 1m
Adjusted sales growth 2.5% (1.4%)
Contribution £56.0m £5 1.0m
Contribution % 2 3.0% 2 1.2%
Rest of Europe sales grew by 2.5% to
£243.5m, though the reported growth in
Sterling was 1.0% reﬂecting the weaker Euro.
Trading conditions worsened during the
second half of the year, but overall growth
rates remained steady. The March exit sales
growth rate fell to 0.3%, primarily due to the
change in the timing of Easter. 
Sales in France declined slightly in the year.
Sales were impacted in the ﬁrst half by
residual problems following the implementation
of EBS in June 2003, but over the year these
issues were resolved and customer service
levels improved sufﬁciently to support a return
to sales growth in the second half. Customer
numbers remained steady. Sales and
marketing efforts were intensiﬁed in the
second half to capitalise on the improving
customer sentiment. Our e-Commerce
activities progressed well, particularly through
further e-Procurement agreements and our
PurchasingManager™ application. 
Sales in Germany grew in the year though
at a lower rate in the second half. e-Commerce
and targeted customers with good growth
potential drove the growth. The e-Procurement
and particularly PurchasingManager™
applications have both shown high growth in
the number of installations and in the sales
mix. During the year, the cut-off time for orders
received was extended to 10 p.m. for next day
delivery, which illustrates the beneﬁt of the
Bad Hersfeld warehouse location being close 
to the main carrier hubs.
In Italy, sales grew at a higher rate than 
in Germany, but the pattern was similar.
Customer numbers continued to increase in
both Germany and Italy.
The smaller European operations had 
a good year. Austria, Benelux and Spain all
achieved double digit sales growth. In Austria, 
a key driver of the growth was a signiﬁcant
increase in customer service, through
improving product availability. This was
achieved by accessing the larger stockholding
in Germany via overnight delivery service
directly from the Bad Hersfeld warehouse. 
e-Commerce continued to be successful
across the region, achieving 22% of sales 
(up from 1 5% last year). In March, e-Commerce
accounted for 24% of sales (up from 
18% last year). 
The proﬁt contribution increased 1 2.1% to
£56.0m and margin increased from 2 1.2% to
23.0%, reﬂecting higher overall gross margins.
North America
2005 2004
Sales £11 2.8m £1 02.8m
Adjusted sales growth 1 9.4% 9.7%
Contribution £1 5.8m £1 3.3m
Contribution % 1 4.0% 1 2.9%
Allied’s sales in North America grew by 19.4% 
to £11 2.8m during the year, although the
reported growth in Sterling was 9.7%, reﬂecting
the sharp weakening of the US Dollar. Sales
growth slowed in the second half to 1 5.7%
against more challenging comparatives. The
exit rate of 1 3% was lower due to particularly
strong sales in March last year. 
Allied’s largely electronic and
electromechanical product range was further
expanded in the catalogue launched in
October 2004 with around 25,000 new
additions to give a net increase of 15,000
products. The “Customer First” initiative
launched last year continued to be rolled out
successfully across the sales branches
whilst the deployment of more external
salesmen was also positive. Allied continues
to invest in improving service with the recent
implementation of the Manugistics demand
forecasting system used elsewhere in the
Group, whilst the customer quotations
system has also been upgraded.
e-Commerce remains underdeveloped 
in Allied. Work on improving the website is
continuing and it will be available during
2005/06. Better search functionality was
introduced during the past year. A system 
to improve the processing of customer
quotations is also being introduced.
Gross margin remained stable at 
around 38%. 
The proﬁt contribution increased 29.7%
to £15.8m and the margin increased from
Electrocomponents plc Annual Report and Accounts 2005 11
Operating and Financial Review
IN FRANCE
our customer service levels improved
and sales grew in the second half
EBS TO BE IMPLEMENTED 
in the UK and Group Process hub in the coming year 1 2.9% last year to 14.0%. This improvement
progressed during the year, with margins of
1 3.3% in the ﬁrst half and 1 4.7% in the second.
Japan 
2005 2004
Sales £1 7 .0m £1 4.4m
Adjusted sales growth 24.0% 28.4%
Contribution £1.5m £0.0m
Contribution % 8.8% N/A
Sales grew by 24.0% to £1 7 .0m with
continued growth in both customer numbers
and the frequency with which customers
purchase. The reported growth in Sterling
was 18.1%. Growth of 19.4% in the second
half was lower than the 29.7% achieved in the
ﬁrst half of the year, whilst the exit rate of
15.9% in March was impacted by the lack 
of a March catalogue and lower year end
purchasing by customers.
e-Commerce became the most important
way to market in Japan by reaching 50% 
of sales in March (up from 43% last year).
Sales through our PurchasingManager™ and
e-Procurement applications both grew well.
Catalogue frequency has been reduced
to once a year (from twice a year) supported
by interim new product updates, following
the positive experiences in France and Italy.
The number of products has been increased
from 47 ,000 to 52,000 in the year.
Proﬁtability continued to improve during
the year to give a proﬁt contribution of
£1.5m against break-even last year.
Rest of the World
2005 2004
Sales £4 1.8m £40.0m
Adjusted sales growth 9.1% 2.8%
Contribution £4.0m £4.0m
Contribution % 9.6% 1 0.0%
Sales in Rest of World grew by 9.1% to £41.8m,
although the reported growth in Sterling was
4.5%. Trading conditions varied across the
region with China particularly strong.
Sales in China, including Hong Kong, 
grew by 1 7 .5% whilst growth reached 25.7% 
in mainland China and exited the year at 
44%. The same day offer (SDO) launched in
Shanghai was extended into Beijing during the
second half. SDO is based on holding stock for
sale in the Shanghai area to allow despatch 
on the day the order is received, so providing
more immediate customer delivery. Its
implementation has required the agreement 
of customs and VAT authorities to ensure that
the stock can be replenished and despatched
quickly. New arrangements with local bankers
also ensure that payments made by
customers can be cleared ﬂexibly. All of these
relationships and permissions are privileges
and together mean that we have a leading
service position that is difﬁcult for others to
match. The high growth in China and Hong
Kong was complemented by good growth in
the other businesses in Asia and Australasia. 
The implementation of EBS in Asia
continues to progress: Hong Kong went live
in May 2005 and will be followed next year
by Shanghai. 
e-Commerce grew to 1 7% of sales in Asia
in March (up from 11% last year). Growth was
particularly good in Australasia and Singapore. 
The proﬁt contribution of £4.0m was 
the same as last year and the margin fell
slightly from 10.0% to 9.6%. Proﬁts grew in 
all businesses, except South Africa, where
exchange rate ﬂuctuations resulted in lower
sales and a lower contribution margin.
Processes
2004
2005 (as restated)
T otal cost £79.5m £77 .6m
Cost as a % of sales 1 0.3% 1 0.2%
The Processes support our operating
companies by ensuring that they have the
products, infrastructure and expertise to
provide consistently high service levels
around the world.
Process costs during the year were
£79.5m, up 2.4% from last year and
amounting to 10.3% of sales. After adjusting
for the costs of EBS net of legacy savings, the
catalogue transformation project and
increased pension contributions, Process
costs were 8.9% of sales (last year 9.5%). 
Information systems Our high transaction
volumes need to be processed accurately
and consistently to achieve our high level of
total customer service. Robust information
systems are therefore vital to the success of
the business and are a key resource in the
Group. They are an area of signiﬁcant cost
and investment. Information Systems,
including the costs of the EBS projects,
accounted for just under half of total Process
costs. A detailed review of the EBS projects is
given below. 
Supply Chain Our Supply Chain ensures that
there is stock available to meet orders as
they are received. Whilst customer service is
our priority, efﬁcient stock management is
also critical. 
Many of the key performance measures
used by the Group are customer service
based and these have improved particularly
in the UK, France and Germany over the past
year reﬂecting the investment in stock.
Stock increased during the year by
£13.6m, resulting in a lower turn (from 
2.7x to 2.5x). The increase in stock to
improve customer service was one factor, 
but the planned rescheduling of the UK
catalogue launch to April 2005 means that
new product stock was on hand at the year
end. These two factors accounted for around
£8m of stock increase. 
In the US and Japan, stock levels have been
kept in line with the growth of sales and this
represents around £4m of the stock increase.
12 Electrocomponents plc Annual Report and Accounts 2005
Operating and Financial Review
MORE THAN
4 ,000
customer organisations use
PurchasingManager™ to monitor 
and control their purchases
WEBSITE
IMPROVEMENTS 
have been made and 
there are more to come Further investment was made in an
increased number of products stocked in
Shanghai, supporting the SDO project and its
expansion into Beijing. This represents
around £1m of the stock increase.
Product Management The Group offers around
350,000 distinct products to its worldwide
customer base. Recently, considerable effort
has been put into ensuring the coherence of
our product ranges.
Many more joint promotions with
suppliers have been implemented, as suppliers
recognise that we can be an important part 
of their sales and marketing effort. 
In light of new and more complex product
regulations being introduced around the world,
suppliers are much more aware of the damage
that can be done to their brands unless tight
regulatory controls are maintained. We invest
considerable time and resources in making
sure that we understand all of the compliance
requirements in the markets we serve, so 
that we can support both customers and
suppliers securely. 
A particularly important development 
for everyone in the electronics industry is the
Restriction of Hazardous Substances Directive
(RoHS), which will take effect in July 2006.
Whilst this is a European Union Directive, it 
is becoming a defacto world standard, being
followed in Japan and certain states of the US,
and so is affecting all our businesses. A team
was formed during 2003, which has worked
with industry experts, suppliers and
customers to develop our approach to all the
implications of RoHS. 
A major programme was initiated to
contact all suppliers of affected RoHS
components and information and changes
are now being received at an accelerating
rate. This is used to update our compliance
records and the information is then made
available to customers via the RS websites
and technical support teams. Suppliers are
making their products compliant at different
rates and to differing degrees; for example,
some suppliers plan to change their product
numbers and others do not. The Group is
actively managing its existing stock to
minimise the time taken to sell out of non-
compliant products as this will help limit the
need for additional RoHS-related stock and/or
stock disposals. As soon as the compliant
products are made available by suppliers,
they are being introduced into the RS range.
Programmes are in place to educate and
inform customers, e.g. through customer
seminars and support for the Government
education programme in the UK, as well as
the internet trading channel and technical
support function.
Media Publishing The Media Publishing
Process manages and delivers all the 
major media for the Group: whether they 
be catalogues, “specialogues”, CD-ROMs 
or websites. 
During the year, we have invested in 
a new catalogue publishing and content
system. This was ﬁrst used in the production
of the October 2004 catalogue in the UK and
cash costs were over £3m, of which around
half has been expensed. The system allows
the presentation of products in ranges rather
than in the modular format previously used.
Our research shows that this makes products
easier to ﬁnd and compare. The information
held on the products is also more extensive.
As well as the additional information provided
on products, the new system enables us to
show links to complementary products, to
encourage pull-through sales.
The next step is to structure the 
e-Commerce product database information
into the same range-based format. 
When the effectiveness of the catalogue
change is fully established, the intention is 
to roll out the new catalogue format into
other markets.
Group Facilities Group Facilities manages the
development and effectiveness of the
warehouses and ofﬁce buildings used by the
Group. No signiﬁcant investments took place
during the year, although we continue to
maintain and upgrade our current properties.
The continued growth of Allied implies that
additional warehouse capacity will be needed
in due course.
Financial review and 
capital structure
Cash ﬂow and balance sheet
2005 2004
(Inc) dec in stocks (1 3.6m) £1.0m
Dec (inc) in debtors £6.2m (£8.4m)
(Dec) inc in creditors (£2.8m) £1 0.9m
Working capital (£1 0.2m) £3.5m
Operating cash ﬂow £11 7 .4m £1 34.8m
Capital expenditure (net) (£2 3.8m) (£1 9.2m)
Free cash ﬂow £6 1.1m £83.0m
Net debt (£55.4m) (£34.5m)
Key working capital statistics
2005 2004
Stock turn 2.5x 2.7x
Trade debtor days 50.9 52.8
Trade creditor days 43.5 43.9
Operating cash ﬂow was £11 7 .4m, down 
from £134.8m last year. Cash conversion
remained high at 111.5% of operating proﬁt
before goodwill amortisation (last year
1 24.2%). The increased working capital
outﬂow was the main reason for the decline.
Working capital outﬂows amounted to
£10.2m, compared to an inﬂow of £3.5m last
year. This was mainly due to higher stock and
the timing of pension payments. The extra
stock was built to support sales and customer
services as described above. The cash
outﬂow from creditors was £2.8m, mainly
due to payment of additional prior year
pension contributions. Trade creditor days
Electrocomponents plc Annual Report and Accounts 2005 13
Operating and Financial Review
High growth rates from new
and existing customers in 
JAPAN
SAME DAY OFFER 
in Shanghai and Beijing 
sets new service standards were similar to last year at 43.5 (43.9 last
year). Debtors decreased by £6.2m and so
trade debtor days were 50.9 compared with
52.8 last year: Easter had a beneﬁcial impact
on debtors at the end of March, but will
reverse in the coming year.
Free cash ﬂow fell by 26.4% to £6 1.1m
again reﬂecting the working capital outﬂow
but also higher capital expenditure. Net
capital expenditure was £23.8m, up from
£19.2m last year, when a property was sold
for its net book value of £3.1m. Of this capital
expenditure, £1 3.0m was on EBS projects, 
up from £10.2m last year. Gross capital
expenditure as a multiple of depreciation was
1.1x, slightly above the 1.0x last year. Interest
and tax payments amounted to £32.5m,
which were similar to last year. EBS had a
much larger impact on cash ﬂow in the year
than in previous years, as described below.
The cash outﬂow on dividends was
£80.0m, up 6.1% from £75.4m last year.
Exchange rate movements increased net 
debt by £2.0m to give an overall increase 
in net debt of £20.9m to £55.4m. 
Gearing increased to 16.8% from 10.0%
last year but interest cover before goodwill
amortisation increased to 11 7x from 77x last
year due to the fall in interest charge this year. 
Exchange rate changes had less overall
impact on the balance sheet than last year:
exchange rate translation increased net
assets by £1.6m compared to a reduction of
£29.2m last year. 
Capital structure
Net debt of £55.4m at the year end was made
up of gross debt of £1 20.2m (denominated
£62.3m in US Dollars, £33.6m in Yen and
£24.3m in other currencies) and ﬁnancial
assets of £64.8m (denominated £1 7 .5m in
Euro, £44.6m in Sterling and £2.7m in other
currencies). These dispositions are based on
interest rate differentials and tax efﬁciency.
PurchasingManager™ continues to be
particularly successful and is now used by
more than 4,000 customer accounts in 1 2
countries (last year, 800 accounts in 10
countries). Revenues through this channel
are now close to that of the e-Procurement
stream, reﬂecting the ease of using
PurchasingManager™ whilst also demonstrating
the challenge that customers have of using
integrated e-procurement systems.
Internet functionality has continued to
improve during the year with new parcel
tracking and easier order input facilities. 
New marketing approaches such as
search engine promotion and bulk e-mail
broadcasting are becoming an important part
of our activities, and are used to increase
marketing pressure and awareness.
Enterprise Business 
System projects
Objectives and progress 
The Enterprise Business System projects are
complex multi-year change management
projects, the objective of which is to improve
signiﬁcantly our service to customers,
increase the effectiveness and efﬁciency of
our businesses’ operations and to make our
systems infrastructure more robust and
secure. This will result from implementing
more standardised and integrated systems
and data structures across the businesses.
The projects are a critical enabler of the
evolving Group strategy and are a key means
of achieving greater ﬂexibility and lower costs. 
The next implementation of the European
template is in the UK, including the central
logistics and Process activities. The plan is
for the UK go-live to take place towards the
end of 2005/06, but at this stage it is not
possible to be absolutely precise on timing.
The implementation will take place when the
system and the business are ready and the
quality standard applied to the go-live
Borrowing requirements through the year 
are signiﬁcantly determined by dividend and
tax payments. The peak borrowing last year
was £98.6m. 
The Group’s two main sources of debt
are a bilateral facility for $100m maturing in
February 2008 and a syndicated facility for
$75m and £110m from eight banks maturing
in February 2010. These facilities were put
into place in February 2005 to replace, at 
a lower margin, all the previous facilities. 
Financial returns
Proﬁt before tax and goodwill on net assets
was 31.6%, up from 31.1% last year. These
returns remain signiﬁcantly higher than 
the Group’s cost of capital. 
e-Commerce
e-Commerce will be a critical part of our
future strategy. e-Commerce has been an
area of rapid growth since 1998 when the
ﬁrst website was launched (rswww.com) in
the UK. e-Commerce sales were 20% of total
sales for the year, up from 15% last year, and
exited the year at 22%, up from 1 7% last year:
e-Commerce sales of £155.9m were 38%
higher than last year.
Our e-Commerce activities are based 
on a common platform. It comprises three
channels: the internet website, which supports
sales via 70 websites in 1 7 languages,
PurchasingManager™; and e-Procurement.
Sales through websites still make up 
the majority of e-Commerce sales. 
e-Procurement and PurchasingManager™
both enable customers to monitor and
control purchases more carefully and
functions such as online order approval help
to lower the customers’ transaction costs.
PurchasingManager™ is our customised front
end to the website, which is provided free to
our customers. e-Procurement utilises the
customers’ own e-procurement system,
which can punch out to the RS website. 
14 Electrocomponents plc Annual Report and Accounts 2005
Operating and Financial Review
FURTHER IMPROVEMENTS IN OUR
CUSTOMER SERVICE LEVELS decision will be very high. Contingency plans
are also being developed and tested in detail.
Additional stock will be carried to support
customer service for a period before and
after the UK go-live whilst there is also
additional capital investment in systems
capacity and infrastructure in the coming
year to ensure robust system performance.
After the UK, the next roll out will be 
in Germany, where some long lead-time
preparation has been done, Italy and then 
the smaller businesses. The roll out should
be completed over the next four years, 
by 2008/09.
A similar but smaller EBS project is under
way in Asia, with implementations completed
in Singapore, Malaysia, the Philippines,
Australia and most recently (May 2005) in
Hong Kong. The next roll out will be in Shanghai.
In due course there will be a systems
investment required in Allied, though on a
much smaller scale than EBS in Europe.
Costs and cash ﬂows
The EBS projects have had a substantial
impact on the ﬁnancial performance of the
Group in terms of proﬁt and cash ﬂow over the
past ﬁve years. This impact is expected to
peak in 2005/06 with the UK implementation. 
The capital items of the projects include
the hardware and software licenses. The
capitalised costs also include the costs of
designing, building and testing the applications
whether by third party consultants or through
internal labour. Depreciation of the capitalised
amounts reﬂects speciﬁed rates for the
different components depending on their
estimated life. The range of the lives is two
years to eight years and the initiation of
depreciation is when the asset ﬁrst comes
into use. Hence, given the magnitude of the 
UK and central logistics go-live, there will be 
a substantial increase in annual depreciation
at this go-live. Depreciation is included in
Process costs. The net book value (or carrying
value) of capitalised costs is reviewed for
impairment periodically. 
The expensed project costs relate to
training and business change, together with
any inefﬁciencies in otherwise capitalisable
costs. In effect, these are the costs of
preparing the system for the business and
are included in Process costs. The expensed
project costs increase sharply as the projects
move into their later phases. 
Costs that are incurred by the business
to cover the costs of training (such as taking
on additional sales staff to ensure that
training does not impact current customer
service) and change management are
expensed and shown as local costs.
The EBS applications require
maintenance and support, including help
desk activities. These costs are expensed as
part of Process costs, but are offset by
savings of such costs on the legacy systems.
In the current year, EBS has impacted
proﬁt by about £9.2m and cash ﬂow by
£16.6m (both net of displaced legacy costs
of £4.9m), which are a substantial increase
on last year, where the impacts on proﬁt and
cash ﬂow were £6.1m and £1 2.4m
respectively. Over the last ﬁve years, the
cash outﬂow on the project of about £7 1.6m
has largely been on capital expenditure,
which amounted to £63.2m.
The costs to complete the EBS projects
require many assumptions on the success 
in meeting milestones and hence the
implementation timing. Based on current
plans, the UK and central logistics
implementation is expected to drive a large
increase in costs and cash outﬂow in
2005/06, approximately doubling the 
proﬁt and cash ﬂow impacts from 2004/05.
The local costs and Process costs will both
increase sharply given the intensiﬁed
training schedule, whilst the depreciation
impact will reﬂect the detailed timing of 
go-live. The working capital outﬂow on
support stock is now expected to be around
£11m. This will be run down in 2006/07 .
Capital expenditure is expected to be
higher in 2005/06 than previously planned,
due to greater consultancy resource required
in the build and testing phases and also due
to more investment in equipment capacity.
Also, third party hosting will be introduced for
the major hardware components of EBS and
other major Group systems to increase
security and resilience.
The incidence of costs, stock build and
capital expenditure in the coming year are
expected to be concentrated in the ﬁrst half
which will signiﬁcantly depress the overall
free cash ﬂow of the Group in this period.
In 2006/07 , the operating proﬁt impact
is likely to be similar to 2005/06, with the
reduction in local and expensed project 
costs being offset by higher (annualised)
depreciation. The cash outﬂow is expected 
to be much lower than in 2005/06, due to
lower costs, the release of the safety stock
and lower capital expenditure. 
The implementations in Germany, Italy
and elsewhere in Europe will be roll outs of
the existing template with limited modiﬁcation
and so project costs and the cash ﬂow
impact reduce shortly after 2006/07 .
Given the current assumptions, the
overall cash costs (capital and expense) of
the EBS projects are expected to be around
£110m-£1 20m through to 2008/09 from
2000/01, before interest and tax and before
any beneﬁts other than legacy cost savings.
Of this, around 90% relates to Europe, the rest
to Asia. The operating proﬁt impact is around
£80m over the eight years of the project.
Beneﬁts 
The major beneﬁts of the EBS projects are the
qualitative ones that derive from having more
standardised and integrated operating
Electrocomponents plc Annual Report and Accounts 2005 15
Operating and Financial Review
Cum 2003 £m 2003/04 £m 2004/05 £m Cum 2005 £m
Local costs 0.3 1.1 1.7 3.1
Process costs
Project costs 4.4 2.0 1.8 8.2
System support 1.1 3.3 5.0 9.4
Depreciation 1.7 3.9 5.6 11.2
Displaced legacy costs (3.2) (4.2) (4.9) (1 2.3)
Proﬁt and loss account impact 4.3 6.1 9.2 1 9.6
Add back depreciation (1.7) (3.9) (5.6) (11.2)
Capital expenditure 40.0 10.2 1 3.0 63.2
Cash ﬂow impact before interest and tax 42.6 1 2.4 1 6.6 71 .6
The ﬁnancial impact 
(before interest and tax) 
of EBS through 
to 31 March 2005 is:  systems, procedures and data structures.
The realisation of further competitive
advantage through enhanced customer
service and capability is key.
Speciﬁc measurable beneﬁts will only
become visible after the UK and common
logistics go-live and stabilisation and a
change of this magnitude will require some
settling in during 2006/07 . Stock efﬁciencies
are expected to improve signiﬁcantly as stock
can be managed with a regional database as
against the current country level information.
Operating structures with improved
efﬁciencies, such as from shared services,
will be driven from common procedures and
data. Customer and supplier support and
capabilities should be signiﬁcantly enhanced,
including more rapid and focused product
introductions. Over the project life, we believe
the beneﬁts of the projects should broadly
cover the cash investment. 
Pension
The Group has deﬁned beneﬁt schemes in
the UK (closed to new entrants in April 2003
and replaced by a new deﬁned contribution
scheme), Ireland (closed to new entrants)
and Germany. Elsewhere, including the
replacement UK scheme, the schemes 
are deﬁned contribution. 
SSAP 24 remains the accounting
standard applied to pensions. A triennial
valuation of the UK deﬁned beneﬁt scheme
was carried out as at 31 March 2004 and
completed during the year. It showed a deﬁcit
of £33.4m, net of deferred tax of £14.3m. In
order to eliminate the deﬁcit, based on the
assumptions used in the valuation, the Group
is making annual payments to the scheme
for the next 15 years of £4.3m (increasing at
3% per year). Last year, an increased charge
of £1.8m was taken.
The total charge for deﬁned beneﬁt
schemes increased by £2.4m to £8.5m.
From 1 April 2005, employee contributions to
the scheme have also increased. The UK
deﬁned contribution scheme incurred a charge
of £0.4m, an increase of £0.2m over last year. 
The statutory minimum funding position
of the UK deﬁned beneﬁt scheme remains
relatively strong with a Minimum Funding
Ratio of 135%- 140% as at 31 March 2005 (last
year 1 25%- 130%). 
FRS 1 7 was due to replace SSAP 24 in
2005 but has not been implemented due to
the deferral by the Accounting Standards
Board. The Group will move to IAS 19 next
year, which should be similar in application to
FRS 1 7 , pending the approval of the recent
amendment by the International Accounting
Standards Board. Under FRS 1 7 , the deﬁned
beneﬁt schemes showed a combined deﬁcit
of £32.4m, net of deferred tax, compared to a
deﬁcit of £34.6m at the end of last year. The
charge to proﬁts arising from these schemes
would have been £10.6m (last year £10.4m). 
Risks
Business risks
In looking forward, the most signiﬁcant
potential business risk remains that the RS
“business model” of high service, low volume
distribution has diminishing relevance to our
customers or prospective customers so that
they are less willing to pay the price levels
implied by such service. Providing these
services means that the Group carries high
costs. We continue to monitor this risk through
the actual results of our businesses, the
development of the customer base, and
through market research. In the past year we
have undertaken more extensive customer
research in the UK and Europe. These indicate
that our model has relevance in all our
markets, but that it will need to evolve to meet
customer needs and the increasing capability
of more local competitors. Customers are
becoming more value conscious and our
pricing and discounting policies are
developing to reﬂect such trends, which
implies continued pressure on gross margin
and the need for tight cost management. 
The weak sales in the UK and Continental
Europe in recent years could indicate that the
market potential available to us might be
smaller than previously anticipated. As these
regions account for about 80% of the Group’s
sales then trends in these markets have a
signiﬁcant impact. In large part the weak sales
reﬂect our exposure to the manufacturing
sector and we expect the pressures on
manufacturing will continue. More emphasis 
is now being placed on our strengths in
meeting particular customer needs whatever
the sector in the refocused strategy. In
particular concentration on the Electronics
and Electromechanical offer for R&D and
maintenance engineers builds our strength 
in an area where migration to lower cost
countries is less likely. There is the risk
however, that this strategy will have a more
limited impact or take more resource and 
time than currently envisaged. 
Over the longer term our businesses in
China and in other low cost economies will
beneﬁt from the migration of manufacturing
from Europe and indeed from North America
and Japan. 
The increased attention paid to pricing 
by some of our customers is expected to
continue. Our price levels are scrutinised 
for “competitiveness” against relevant
competitors: a procedure has been extended
in recent years. We make adjustments to 
our catalogue prices to try and ensure that
our prices are fair to customers for the
products and services we provide. We have
also responded with higher or more ﬂexible
discounts particularly for our larger
customers related to business development,
and we have in place appropriate
management controls and guidelines.
16 Electrocomponents plc Annual Report and Accounts 2005
Operating and Financial Review
SHARED LEARNING
ACROSS EUROPE 
IS ACCELERATING 
CUSTOMER
DEVELOPMENT
SALES ARE ACHIEVED
THROUGH 70 WEBSITES
WORLDWIDE, IN
17
LANGUAGES The large systems projects inevitably carry
implementation risks, particularly the EBS
implementation in the UK during the coming
year. As this implementation also includes the
Group’s central logistics processes then the
overall impact of a failed implementation
would be very high. Hence our approach is 
to implement when both the system and the
business are ready, and this takes precedence
over the timetable and cost. Given the stress
that such implementations put on the
business, however, there is also every effort
being made to complete the project as soon 
as possible. The lessons from previous
implementations are being applied so more
resources have been planned with the intent
that there is no reduction in customer service.
The training of all employees engaged in the
change process has also been intensiﬁed.
Project support, contingency plans and
substantially increased stock levels have also
been put in hand or are planned. Given the
risks involved, the project is under the direct
control of the Chief Executive and an
experienced project team. 
Over the coming year, product
compliance with the new RoHS regulations will
be an increasingly important and complex
area with the potential risk of higher stock 
and/or increased stock write-offs if the
product transition is not well managed. We
also need to ensure that we are providing our
customers with the service and assurance
that they require. We have a senior management
team working on the changes that will be
required in co-operation with suppliers and
customers. Our approach is well deﬁned, but
there remains uncertainty by suppliers and
customers on the detailed application of the
regulations in practice for them and so we are
in continuous communication with them.
Though the Group’s pension position 
is relatively strong, the new UK regulations
governing pensions do imply increased risk
for the company. Changes in funding
requirements could result in higher
contributions. The Group works closely 
with the Trustees in agreeing a mutually
sensible way forward.
The Board has conducted risk reviews
annually for some years to consider the
major risks and management’s mitigating
actions. This process is being refreshed over
the coming year with the implementation 
of broader risk management techniques
across the Group. Business continuity,
disaster recovery and other preventative
practices are a major focus of the Group 
and are continually being enhanced and
where practicable fully tested. Where
appropriate, residual risk is covered by
insurance, which is managed centrally.
Financial risks
Group Treasury operates as a centralised
service centre and is managed to reduce the
Group’s ﬁnancial risks.
The Group’s foreign currency transaction
risks typically arise because purchases in
currencies other than Sterling are much less
than its receivables in those currencies.
Substantial hedging of net currency
exposures over catalogue lives is
implemented in order to “shelter” forecast
gross proﬁts. In this way the impacts of
currency ﬂuctuations are smoothed until
selling or cost prices can be changed in light
of the movement in exchange rates. The
hedges are enacted through forward
currency contracts entered into by Group
Treasury on the basis of trading projections
provided by local businesses. 
Speciﬁc cash ﬂows relating to material
transactions in currencies other than the
functional currency of the local business are
hedged when the commitment is made. 
Foreign currency translation exposures
are not explicitly hedged, but local currency
debt is used where economic and ﬁscally
efﬁcient in the ﬁnancing of subsidiaries and
this provides a partial hedge. This was
particularly so of the US Dollar over the year
as a large part of the debt is in US Dollars,
originally arising from the acquisition of Allied,
and the exchange rate movements relating 
to this debt offset the impact on underlying
assets. Guidelines are in place for reviewing
the impact of translation exposures should
there be any material changes. 
Multi-country cash pooling is in place
with our banks across the Group to ensure
daily netting of almost all the Group’s cash
ﬂows in all currencies with consequent
improvements in liquidity and interest costs.
The investment management of liquid
funds aims to maximise the return on net
funds subject to the security of the principal
and the liquidity of the Group. The Group has
established policies to identify counterparts
of suitable credit worthiness and has
procedures to ensure that only these parties
are used, that exposure limits are set and
that these limits are not exceeded. 
The Group does not intend to change
materially its Treasury policies as a
consequence of International Accounting
Standard 39. 
Corporate and Social Responsibility
We have long encouraged a social, ethical and
environmentally responsible approach to our
business activities. This is the third year of
formally reporting on our corporate social
responsibility policies and performance in
accordance with the Association of British
Insurers (ABI) guidelines. We are pleased to
report progress in a number of areas although
progress has not been uniform across the
Group. In addition to this formal report, our
communications with stakeholders regarding
corporate social responsibility (CSR) are
supplemented by periodic updates on the
www.electrocomponents.com website. 
Electrocomponents plc Annual Report and Accounts 2005 17
Operating and Financial Review
WE ARE MEETING THE
CHALLENGE OF THE 
RoHS DIRECTIVE BY
• working closely with suppliers
• updating product compliance status
• and actively managing existing stock
ACROSS THE GROUP
22%
of sales are now
through e-Commerce Principles
During the year, a set of Corporate and Social
Responsibility (CSR) principles were
established that underpin the Group’s trading
practices and the ethical standards and
respect with which it manages employees. 
In particular the Group:
• requires compliance with the laws 
and regulations in the countries in 
which it operates
• requires that its resources are not 
used in any illegal manner and that 
it shall not enter into any 
anti-competitive arrangements
• strives to maintain the highest standards 
of personal ethics and behaviour
• respects the rights of every employee 
and provides a safe and healthy
environment in which to work and
• maintains procedures for the 
conﬁdential reporting of breaches 
of these principles.
Corporate accountability
The Board has overall responsibility for the
Group’s CSR policies and performance. These
include procedures for the identiﬁcation,
management and control of risks to the
business arising from CSR issues.
The Chief Process Ofﬁcer, Richard Butler,
has speciﬁc responsibility for CSR matters,
and for ensuring that the associated risks are
incorporated into the overall Group risk
management process.
Ethical trading
Electrocomponents’ products are sourced
globally from a wide range of suppliers with
whom we seek to foster long term and
mutually beneﬁcial relationships. Our Ethical
Audit process for suppliers is based on the
Ethical Trade Initiative guidelines. Since 2003
on-site audits have been conducted with 46
suppliers in Asian countries and a number of
potential new suppliers have been rejected.
Environment
We are committed to minimising the impact 
of our activities on the environment 
and continuously improving our
environmental performance. 
In 2003 we developed a generic
Environmental Management Standard (EMS)
model and benchmarking process to support
our businesses in implementing EMS and 
to spread best practice. We continue to be
supportive of our businesses adopting an
externally accredited EMS where these
provide tangible business and environmental
beneﬁts. The Group has three businesses
(UK, Germany and Austria) certiﬁcated 
to ISO14001 Environmental Management
Standard, whilst our Japanese business 
is pursuing certiﬁcation.
We have no manufacturing operations
and are not intensive users of energy or
generators of waste. Our main environmental
impacts and those we can directly control
and inﬂuence are associated with national
and international distribution, speciﬁcally
packaging and paper consumption and the
energy used in our facilities and that
associated with transportation where we
work with our subcontractors. 
Although we have not sought to quantify
the beneﬁt, an important part of the Group’s
contribution to sustainable developments is
our capability to provide customers with a
single source for a wide range of products,
thus consolidating multiple highly
fragmented global supply chains and
reducing overall environmental impact. 
We are supportive of the objectives of
the Waste Electrical and Electronic Equipment
(WEEE) and RoHS legislation. The legislation
will place new demands on our businesses,
but our preparations are well advanced. 
Packaging and catalogues
We use a variety of packaging both for product
packaging and for transit purposes and have a
philosophy of “reduce, re-use and recycle” 
in our use of packaging materials wherever
practicable. Last year the UK business
recycled 4 1 5 tonnes of packaging materials
(compared with 406 tonnes last year). 
We continue to promote the use of reusable
plastic “replenishment modules” (RMs) 
as transit packaging for stock shipments
between suppliers and our warehouses
whenever appropriate for the product.
Currently, 34% of all products delivered to our
UK warehouses from suppliers are in RMs (last
year 35%) thus reducing costs and waste by
eliminating the need for transit packaging. 
Production of paper catalogues and
promotional literature is organised to
minimise environmental impact, with use of
optimised grades of paper to help reduce
paper consumption and where practicable
distribution costs. All paper for catalogues and
promotional literature is sourced from pulp
from Forestry Stewardship Council (FSC)
approved sources. Catalogues and other
promotional literature are printed in facilities
accredited to the ISO1 4001 Environmental
Management Systems standard. 
Health and safety
We are committed to health and safety best
practice as an integral part of our business
activities and the Group Health and Safety
policy statement forms a sound basis for
health and safety management throughout the
Group. The policy, which is the responsibility of
the Group Board, is to develop effective health
and safety management processes using risk
management principles to promote
continuous improvement. RS Components in
the UK is certiﬁed to Occupational Health and
Safety Standard OHSAS18001 and we are
using the OHSAS18001 model to develop our
approach systems throughout the business. 
It is with regret that we report that in
January 2005 a fatality occurred at our
18 Electrocomponents plc Annual Report and Accounts 2005
Operating and Financial Review
THE CORPORATE AND
SOCIAL RESPONSIBILITY
PRINCIPLES ARE THAT
THE GROUP:
• requires compliance with the laws and regulations in the countries 
in which it operates
• requires that its resources are not used in any illegal manner and that 
it shall not enter into any anti-competitive arrangements
• strives to maintain the highest standards of personal ethics and behaviour
• respects the rights of every employee and provides a safe and healthy 
environment in which to work and
• maintains procedures for the conﬁdential reporting of breaches 
of these principles. Nuneaton facility to an engineer undertaking
warehouse maintenance activities. 
We closely monitor the number of
accidents and occupational conditions where
employees are absent from work for over 
24 hours. During 2004/05 there were 
31 “Lost Time” accidents across the Group
compared to 26 in 2003/04. The lost time
accident rate rose from 0.306 accidents per
100,000 hours in 2003/04 to 0.31 2
accidents per 100,000 hours in 2004/05.
This increase was primarily due to an
increase in the number of manual handling
and slip and trip injury reports. 
Employees
We value the commitment of our employees.
Our employment policies are designed to
attract, retain, motivate and train our people
and to respect their human rights, including
freedom of association, and to ensure equal
opportunity and diversity. We comply with
the core International Labour Organisation
conventions that prohibit the use of child,
under-age or forced labour.
In addition to in-house magazines, 
we communicate with our employees
through the corporate Intranet and the
Electrocomponents Forum, which includes
employees elected from each Operating
Company and Process. This year we have
also established a UK Information &
Consultation forum that will comply with the
Information & Consultation Regulations. We
have made good progress in extending the
corporate Intranet service across the Group,
and in ensuring that all employees have
access to it and are trained in its use. In the
UK, we achieved “Investor in People” in
recognition of our training and development
activities in October 2004. 
Community activities
We have a strong sense of community
responsibility and we encourage our
businesses around the world to enhance
relationships with the communities in 
which they operate by contributions 
“in kind” as well as ﬁnancial. Links with
educational establishments are developed
and remain strong.
International Financial Reporting
Standards
The Group will report using International
Financial Reporting Standards for the year
ending 31 March 2006. The next set of interim
ﬁnancial statements, for the six months
ending 30 September 2005, will consequently
also be prepared using these standards.
A project team has been working for 
18 months to estimate the extent of the
changes to the Group results. The main
changes for the Group include accounting 
for deﬁned beneﬁt pension schemes, share
option plans, dividends and goodwill. The
changes to reported proﬁt will also change
the presentation of earnings per share.
We plan to make a separate
announcement on the extent of changes
arising from the conversion to International
Financial Reporting Standards in July 2005. 
Electrocomponents plc Annual Report and Accounts 2005 19
Operating and Financial Review
IN THE UK WE WERE ACCREDITED
WITH THE INVESTOR IN PEOPLE 
STANDARD IN OCTOBER 2004  Board of Directors
20 Electrocomponents plc Annual Report and Accounts 2005
Board of Directors
1. R A Lawson, Chairman
Bob Lawson, 60, joined as Group Managing
Director in April 1991 and was the Group
Chief Executive from April 1992. Mr Lawson
was appointed as part-time Chairman in
November 2001. He is a qualiﬁed engineer
with a business degree and has worked in
several United Kingdom and continental
groups. He was Sales Director of RS
Components Limited from 1979 to 1987 
and then spent 5 years as Managing 
Director of Vitec Group plc. He is also part-
time Chairman of Hays plc.
(Chairman of the Nomination Committee) (a) 
2. I Mason, Group Chief Executive
Ian Mason, 43, joined the Group in February
1995 as Director of Business Development.
He was appointed to the Board of Directors in
July 2000 as Chief Operating Ofﬁcer and was
appointed Group Chief Executive in July 2001.
Previously he worked as a Management
Consultant for The Boston Consulting Group.
(Chairman of the Group Executive Directors’
Committee) (b) (c)
3. J L Hewitt MA FCA MBA, Deputy Chairman
and Group Finance Director
Jeff Hewitt, 57 , joined as Group Finance
Director in November 1996 from Unitech plc
where he was Finance Director. He joined
Unitech in 1991 from Coats Viyella plc 
where he was Group Strategy Director and 
a Divisional Chairman. He has worked for 
The Boston Consulting Group and Arthur
Andersen & Co. He is also a Non-Executive
Director of The Roxboro Group plc.
(Chairman of the Treasury Committee) (b) (c) 
4. R B Butler FCIS, Chief Process Ofﬁcer
Richard Butler, 45, joined the Group as
Company Secretary in August 1987 from
Bowthorpe Holdings plc, now Spirent plc. 
He was appointed to the Board in July 2000
and is responsible for the Group operational
processes. (b) (c)
5. F D Lennertz Dr.-Ing, Non-Executive Director
Dieter Lennertz, 68, joined as a Non-
Executive Director in August 1995. He is 
a telecommunications engineer who spent
three years in the Netherlands and fourteen
in France working for the European Space
Agency. He joined Telenorma GmbH (Bosch
Group) in 1983 and until 1995 was Chief
Executive of this telecom company. He is
a lecturer at the European Business School 
in Germany. (a) (d)
6. K Abbott, Non-Executive Director
Kevin Abbott, 50, joined as a Non-Executive
Director in November 2004. He is currently
Chief Executive Ofﬁcer of Alpha Airports
Group plc. Prior to joining Alpha Airports
Group plc he held various senior positions
with Bowater plc (now Rexam plc) and
Redland plc. (a) (d) (e)
456
1 23
  7 . K Hamill BA FCA, Non-Executive Director
Keith Hamill, 52, joined as a Non-Executive
Director in July 1999. He is Chairman of
Travelodge Limited, Luminar plc and Collins
Stewart Tullett PLC. He has held several senior
ﬁnance positions, including Finance Director
of WH Smith, Forte, and United Distillers. He
was also a partner in PricewaterhouseCoopers
and is Pro-Chancellor of Nottingham University.
(a) (d) (e) 
8. N J Temple, Non-Executive Director
Nick T emple, 57 , joined as a Non-Executive
Director in September 1996. He is a Non-
Executive Director of Datatec Inc, Datacash
Group plc and 4imprint plc and is Chairman 
of Fox IT Ltd, T ax Computer Systems Ltd and
Retail Business Solutions Ltd. He was Chairman
of Blick plc, Chairman and CEO of IBM UK Ltd
and Vice-President of Sales and Marketing in
IBM Europe, Middle East and Africa.
(Mr T emple was appointed Senior Non-
Executive Director on the retirement of 
David Winterbottom on 1 6 July 2004) 
(a) (d) (e)
9. L Atkinson MA D.Phil, Non-Executive Director
Dr Leslie Atkinson, 6 1, joined as a Non-
Executive Director in July 2000, having spent
most of his career with BP where he became
Chairman of BP Asia Paciﬁc. He has also been
a member of the UK Government’s Central
Policy Review Staff, Vice President of the
Chamber of Shipping and served on the
Board of the Securities and Futures Authority.
His other Non-Executive Directorships
include AEA Technology plc and Witan Paciﬁc
Investment Trust plc. (Chairman of the
Remuneration Committee) (a) (d) 
10. T G Barker MA, Non-Executive Director
Timothy Barker, 65, joined as a Non-Executive
Director in July 2000. From 1998 until his
retirement in 2000, he was a Vice-Chairman
of Dresdner Kleinwort Benson and from 1993
of Kleinwort Benson Group plc. In the mid-
1980s he was Director General of the City
Panel on T akeovers and Mergers. Currently 
he is Chairman of Robert Walters plc, and a
Non-Executive Director of Drax Group Limited.
(Chairman of the Audit Committee) (a)
11. C Carfora FCIS, Company Secretary
Carmelina Carfora, 41, joined the Company 
in 1989 from BTR plc. She was appointed
Company Secretary in September 1996. (b)
Electrocomponents plc Annual Report and Accounts 2005 21
Board of Directors
7
10
8
11
9
a – member of the Nomination Committee
b – member of the Treasury Committee
c – member of the Group Executive 
Directors’ Committee
d – member of the Remuneration Committee
e – member of the Audit Committee The Directors present their report on the affairs of the Group together with the audited accounts for the year ended 31 March 2005.
Principal activity
The principal activity of the Group is the distribution of electronic, electrical and industrial, and commercial supplies and services, through 
its 26 operating companies and its distributors. Signiﬁcant events during the year are detailed in the Chairman’s Statement, the Chief
Executive’s Review, and the Operating and Financial Review shown on pages 2 to 19.
Results and dividends
Results for the year are set out in the proﬁt and loss account on page 36. An analysis of turnover, proﬁt and net assets by activity is shown 
in note 2 on pages 41 and 42. The Directors recommend a ﬁnal dividend of 1 2.6p per ordinary share, to be paid, if approved, on 22 July 2005
which, together with the interim dividend of 5.8p per share paid in January, amounts to 18.4p for the year (2004: 18.2p). 
Corporate Governance
In respect of the year ended 31 March 2005, the Company has been subject to the provisions of the new Combined Code on Corporate
Governance published in July 2003 and appended to the Listing Rules of the UK Listing Authority (the “Combined Code”). Section 1 of the
Combined Code establishes 14 main principles and 2 1 supporting principles of good governance in four areas: Directors; Remuneration of
Directors; Accountability and Audit; and Relations with Shareholders. The following three sections explain how these principles were applied. 
A detailed report on Directors’ Remuneration can be found on pages 28 to 33.
Directors and Directors’ Independence
The Board comprises the Chairman, who is part-time, three Executive Directors and six independent Non-Executive Directors. The Board is
collectively responsible for the performance of the Company. The Board has carefully considered the guidance criteria on independence of 
Non-Executive Directors under the Combined Code. In the opinion of the Board, all the Non-Executive Directors (including Dr Lennertz who has
served on the Board for more than 9 years) bring independence of judgement and character to the Board and to the committees on which they
sit, and are independent of management and free from any business or other relationships which could interfere with the exercise of their
judgement. Dr Lennertz, who is ﬁnancially independent of the Company, has the broad experience, credibility and commitment required to 
be an effective independent director and makes an important contribution to strategic issues, which is a considerable beneﬁt to the Board. 
Biographical details of the Directors at the date of this report are set out on pages 20 and 2 1, together with details of their membership 
of Board Committees. Brief details of the Chairman, the Chief Executive and the Senior Independent Director are set out on page 24.
Directors’ interests in the shares of the Company are shown on pages 24, 32 and 33.
The Board has a formal schedule of matters reserved for its approval. It is responsible for overall Group strategy and the approval and review 
of major investment proposals. The Board discusses and agrees strategic plans, reviews forecasts and evaluates Group and subsidiary
performance. Other day to day operational decisions are delegated by the Board to the Executive Directors’ Committee. 
Directors are encouraged to update their skills, knowledge and familiarity with the Group by attending external seminars and brieﬁngs, through
participation at meetings and through visits to operating units, both in the UK and overseas, as well as by receiving presentations from senior
management. Directors are given access to independent professional advice at the Group’s expense, if they deem it necessary in order for
them to carry out their responsibilities. This is in addition to the access that every Director has to the Company Secretary. The Board has
continued to secure appropriate insurance cover for its Directors.
Retirement by rotation and new appointment Mr Lawson, Mr Hamill and Dr Lennertz retire by rotation at the forthcoming Annual General
Meeting in accordance with the Company’s Articles of Association and, being eligible, offer themselves for re-election. 
Mr Lawson has a contract terminating at the date of the Company’s Annual General Meeting in 2006, unless renewed by the Company. 
The contract provides for 1 2 months’ notice of termination. Neither Mr Hamill nor Dr Lennertz has a service contract. 
In line with best practice under the Combined Code, Directors who have held ofﬁce for more than 9 years are required to submit themselves for
annual re-election. Accordingly, as Dr Lennertz has served as a Non-Executive Director for more than 9 years, he is subject to annual re-election. 
Following formal performance evaluation, the Chairman conﬁrms that the performance of Dr Lennertz and Mr Hamill as Non-Executive
Directors continues to be effective and that they demonstrate commitment to the role. 
With a view to a progressive refreshing of the Board Mr Abbott was appointed as a Non-Executive Director in November 2004. Mr Abbott
therefore stands for formal election at the forthcoming Annual General Meeting.
Board committees The Board has a number of standing committees consisting of certain Directors, and in the case of the Treasury Committee,
certain senior managers, to which speciﬁc responsibilities have been delegated and for which written terms of reference have been agreed.
These terms of reference are available for inspection on the Company’s website. Membership of the various Committees, including the
Chairman of each Committee, is shown on pages 20 to 2 1. The Company provides the Committees with sufﬁcient resources to undertake their
duties, including access to the Company Secretary.
Report of the Directors
22 Electrocomponents plc Annual Report and Accounts 2005
Report of the Directors THE EXECUTIVE DIRECTORS’ COMMITTEE consists of the Executive Directors. The Committee meets at least monthly and manages the day to day
activities of the Group. The Board has delegated the following responsibilities to the Executive Directors’ Committee: the development and
recommendation of strategic plans for consideration by the Board; monitoring of the operating and ﬁnancial results against plans and
forecasts; and the development of risk management and control procedures.
THE AUDIT COMMITTEE consists of all the Non-Executive Directors, with the exception of Dr Atkinson and Dr Lennertz. It meets at least three
times a year and more frequently if required. The Committee assists the Board in its duties regarding ﬁnancial statements and reviews the
operation of internal ﬁnancial controls with the internal operational audit team and, where applicable, external auditors. It also reviews the
scope and results of the audit with the external auditors and the results of the work of the internal operational audit team. The Committee is
also responsible for reviewing the arrangements whereby staff may, in conﬁdence, raise concerns about possible improprieties in matters 
of ﬁnancial reporting or other matters. Further details of the role of the Committee are set out on pages 25 and 26.
THE TREASURY COMMITTEE consists of the Chief Executive, the Finance Director, the Chief Process Ofﬁcer, the Group Treasurer, the Group
Controller, the Company Secretary and the Group T ax Manager and sets detailed treasury policy for the Group within guidelines established 
by the Board. The Committee meets monthly.
THE REMUNERATION COMMITTEE consists of all the Non-Executive Directors with the exception of Mr Barker. It meets as required and is
responsible for all aspects of the remuneration of Executive Directors and senior managers. Details of the remuneration policy and of the
remuneration of each Director are set out on pages 28 to 33 of the Remuneration Report. 
THE NOMINATION COMMITTEE consists of the Chairman and all the Non-Executive Directors. The Committee meets as required and recommends
to the Board candidates for appointment as Executive and Non-Executive Directors of the Company. The Committee periodically assesses what
new skills, knowledge and experience are required on the Board and if appropriate, recommends a candidate proﬁle which is then used to brief
Recruitment Consultants appointed by the Committee to undertake the selection process. Initial meetings are held with prospective candidates
and a shortlist of individuals are selected to meet with the Chairman, other Nomination Committee members and the Executive Directors. The
Nomination Committee then meets and decides which candidate, if any, will be recommended to join the Board. This process was used for the
appointment of Mr Abbott as a Non-Executive Director in November 2004. 
Board Evaluation During the year the Chairman has held meetings with the Non-Executive Directors, without the Executives present. 
In addition, the Chairman issued a broad questionnaire to Board members for the purpose of assessing overall Board performance.
The responses from this questionnaire were collated independently by the Company Secretary to form the basis for one to one meetings
between the Chairman and each Director to evaluate individual, Board and Committee performance. The Chairman subsequently prepared 
a report for Board consideration from which a list of actions was agreed.
The list of actions is maintained and monitored by the Company Secretary.
During the year, the Non-Executive Directors, led by Mr Temple in his capacity as the Senior Independent Director, met to review the
performance of the Chairman, taking into account the views of the Executive Directors.
Board Attendance
Board and Committee Meetings The following table sets out the number of meetings of the Board and its Committees during the year and
individual attendance by Board members at these meetings:
Group Audit Remuneration Nomination 
Board Committee Committee Committee
Number of meetings during the year 126 63
Chairman – R A Lawson 12 – – 3
Executive Directors
R B Butler 12– ––
J L Hewitt 12– ––
I Mason 12– ––
Non-Executive Directors
K Abbott
1
5 3 2 1
L Atkinson
2
1 2 3 6 3
T G Barker
3
126 43
K Hamill 114 53
F D Lennertz 12– 63
N J Temple 126 63
D S Winterbottom
4
52 4–
Notes: (1) K Abbott was appointed to the Board on 3 November 2004. (2) L Atkinson ceased to be a member of the Audit Committee on 3 November 2004. (3) T G Barker ceased to be a member of the
Remuneration Committee on 3 November 2004. (4) D S Winterbottom retired from the Board on 16 July 2004.
Electrocomponents plc Annual Report and Accounts 2005 23
Report of the Directors Chairman, Chief Executive and Senior Independent Director
The roles of Chairman and Chief Executive are held by different individuals. The division of responsibilities between the Chairman and 
Chief Executive has been clearly established; their responsibilities are set out in writing and have been agreed by the Board. 
The Chairman is responsible for leadership of the Board and for organising the business of the Board, ensuring its effectiveness and setting 
its agenda. The Chairman has no involvement in the day to day business of the Company. The Chairman facilitates the effective contribution 
of the Non-Executive Directors, and ensures Directors receive accurate, timely and clear information. He is also responsible for effective
communication between the Board and shareholders. 
The Chief Executive has direct charge of the Company on a day to day basis and is accountable to the Board for the ﬁnancial and operational
performance of the Group; and the determination of the strategy and the achievement of its objectives.
Mr Temple succeeded Mr Winterbottom as the Senior Independent Director when Mr Winterbottom retired from the Board in July 2004. 
Mr Temple is responsible for chairing the meeting of Non-Executive Directors for the purpose of evaluating the Chairman’s performance 
and to provide a communication channel for shareholders if required.
Directors’ Interest in Shares
The beneﬁcial interests of the Directors in the shares of the Company are set out in the table below. The Directors have no non-beneﬁcial interests.
31 March 31 March
2005 2004
K Abbott
1
– –
L Atkinson 2,260 2,260
TGBarker 11,000 11,000
R B Butler 38,349 38,349
K Hamill 5,183 5,183
J LHewitt 75,382 75,382
RALawson 403,374 403,374
F D Lennertz 8,034 8,034
I Mason 37 ,349 37 ,349
NJTemple 10,040 7 ,040
D S Winterbottom
2
3,108 3,108
Notes: (1) or in the case of Mr Abbott, at the date of his appointment. (2) or in the case of Mr Winterbottom, at the date of his resignation. As at 31 March 2005 the Electrocomponents Qualifying Employee Share
Ownership Trust (the “Quest”) and the Electrocomponents Employee Trust (the “EET”) (together the “Trusts”) held 40,358 and 308,417 shares respectively. Because Executive Directors are potential
beneficiaries of the Trusts they are treated for company law purposes as being interested in the shares held in the Trusts.
Relations with shareholders
Executive Directors and senior executives have frequent discussions with institutional shareholders on a range of issues affecting the Group’s
performance, which include meetings following the announcement of the annual and interim results. The Chief Executive, Finance Director and
Chairman meet with major shareholders to discuss performance, strategy and governance, and the Non-Executive Directors are available for
discussions with shareholders if required. The Finance Director reports to the Board on meetings with shareholders.
Shareholders have been given the opportunity to meet with the Chairman and other Board Directors at last year’s Annual General Meeting and
the “Electrocomponents at Home” day held in December 2004. The Senior Independent Director is available to attend meetings with major
shareholders at their request. 
An annual survey is also conducted by UBS, with a representative group of shareholders to obtain their views on strategy and performance, the
results of which are communicated to and discussed by the Board. The Company seeks to ensure that all Directors, including the Chairmen of
the relevant Board Committees and Senior Independent Director, are available to answer questions at the Annual General Meeting. The
Company also has a website (www.electrocomponents.com) which contains up-to-date information on Group activities.
Accountability and Audit
In its ﬁnancial reporting to shareholders and other interested parties, by means of annual and interim results and periodic statements, the
Board aims to present a balanced and easily understandable assessment of the Group’s position and prospects.
Internal control The Combined Code places a requirement on Directors to review at least annually the effectiveness of the Group’s system of
internal control and to report to shareholders that they have done so. 
In accordance with the Turnbull Committee Guidance on internal control there is an ongoing process of risk management and internal control,
which includes a formal report to the Board twice each year.
The Board is responsible for the effectiveness of the Group’s system of internal control. The system of internal control has been designed and
implemented to meet the particular requirements of the Group and the risks to which it is exposed. The internal control system can provide
reasonable but not absolute assurance against material misstatement or loss.
24 Electrocomponents plc Annual Report and Accounts 2005
Report of the Directors The processes to identify, assess and manage the risks to the Group’s continued success are an integral part of the system of internal control.
These processes include systems to assess operational risks, the monthly forecasting procedure, the review and management of key projects
and capital expenditure. The appointment of senior managers is reviewed annually through our succession planning process.
Internal Financial Controls Internal ﬁnancial controls represent the systems employed by the Directors to enable them to discharge their
responsibility for ﬁnancial matters. Those responsibilities are noted on page 34. The main ﬁnancial control elements are described below.
Clear terms of reference set out the duties of the Board and its Committees, with delegation of operating responsibility through the Executive
Directors’ Committee to management in all locations. Operating company controls are detailed in Group Finance and Group Treasury manuals
that specify the controls necessary in identiﬁed areas of ﬁnancial risk. Smaller Group companies are supported by Group, regional and process
specialists in key areas.
Financial reporting systems are comprehensive and include weekly, monthly and annual reporting cycles. Monthly management accounts
together with updated forecasts are prepared by all operating companies and Group-wide processes. These are compared against previous
month forecasts and prior year actuals and variances are reviewed by the Group Executive Management team, Executive Directors’ Committee
and by the Board. Speciﬁc reporting systems cover treasury operations, major investment projects and legal and insurance activities, which
are reviewed by the Board and its Committees on a regular basis.
The Group has a team of internal operational auditors which has an annually agreed audit programme approved by the Audit Committee. The
team reports regularly to the Audit Committee on the results of audits performed and reviews self-certiﬁcation internal control questionnaires
completed by operating management. 
The Board and the Audit Committee have reviewed the effectiveness of the Group’s system of internal control and internal ﬁnancial control
during the period covered by this report.
Audit Independence The Audit Committee and Board put great emphasis on the objectivity of our auditors KPMG Audit Plc (KPMG) in their
reporting to shareholders.
The Audit Committee met six times during the year ended 31 March 2005 and senior representation from KPMG was present at three of these
meetings to ensure full and open communication.
The overall performance of the auditors is reviewed annually by the Audit Committee, taking into account the views of management, and this 
is reported to senior members of KPMG. This forms part of KPMG’s own system of quality control. The Audit Committee also has discussions
with the auditors, without management being present, on the adequacy of controls and on any signiﬁcant area where management judgement
has been applied. 
The scope of the year’s audit is discussed in advance by the Audit Committee. Audit fees are reviewed by the Audit Committee after
discussions between the Operating Companies and the local KPMG ofﬁces and a review by Group management and are then recommended 
to the Board for approval. Professional rules require rotation of the Group Audit Engagement Director. This took place in July 2004 when the
current Director was appointed, replacing the previous Director who had held the post for ﬁve years. 
The annual appointment of our auditors by the shareholders at the Annual General Meeting is a fundamental safeguard, but beyond this, controls
have been in place for some years to ensure that additional work performed by the auditors is appropriate and subject to proper review.
With respect to non-audit assignments undertaken by KPMG the Company has developed a policy to ensure that the provision of such services
does not impair the external Auditor’s independence or objectivity.
The policy is as follows:
• When considering the use of the external auditors to undertake non-audit work, the Finance Director should at all times give consideration 
to the provisions of the Smith Report with regard to the preservation of independence.
• The external auditors must certify to the Company that they are acting independently.
• In providing a non-audit service, the external auditors should not (as summarised in the Smith Report):
• audit their own work;
• make management decisions for the Company;
• create a mutuality of interest; or
• ﬁnd themselves in the role of advocate for the Company.
• Before commissioning such work, the Audit Committee or the Finance Director as appropriate must ensure that the external auditors are
satisﬁed that there is no issue as regards independence.
Electrocomponents plc Annual Report and Accounts 2005 25
Report of the Directors • The Finance Director has authority to commission the external auditors to undertake non-audit work where there is a speciﬁc project with 
a cost that is not expected to exceed £50,000. This work has to be reported to the Audit Committee at its next meeting. If the cost is expected
to exceed £50,000, the agreement of the Audit Committee is required before the work is commissioned. In either case, other potential
providers should be adequately considered.
• The Finance Director monitors all work done by the external auditors or other providers of accountancy services anywhere in the Group 
in excess of £10,000.
Going Concern
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence
for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.
Compliance with Combined Code
During the year ended 31 March 2005, the Directors consider that the Company complied with the provisions set out in Section 1 of the
Combined Code in force during the year ended on that date, except that the current Senior Independent Director who assumed the role in 
July 2004 has not as yet attended any meetings with major shareholders. He has not been requested to attend such meetings, although it 
is envisaged that he will be given the opportunity to attend such meetings in the future. In addition, Kevin Abbott, who joined the Board in
November 2004, has not yet had the opportunity to meet with major shareholders. It is anticipated that major shareholders will be able to 
meet Mr Abbott at the forthcoming Annual General Meeting.
Payment to Suppliers
The Group agrees terms and conditions for its business transactions with suppliers. Payment is then made according to these terms, subject 
to the supplier fulﬁlling its obligations. The Company has no trade creditors. Supplier payment days for the continuing operations of the Group
outstanding at 31 March 2005 represent 44 days (2004: 44 days) of average purchases.
Employment Policies
The Group values highly the commitment of its employees and has maintained its practice of communicating business developments to them
wherever practicable. Regular staff appraisals and consultations take place with individuals and the employees’ representatives. The Group
remains supportive of the employment and advancement of disabled persons and complies with the Core International Labour Organisation
Conventions and prohibits the employment of underage or forced labour.
Capital Gains T ax
For Capital Gains T ax purposes the valuation of the Company’s 10p ordinary shares at 5 April 1982 was 40p.
Substantial Shareholders
As at 20 May 2005 the following substantial shareholdings had been notiﬁed to the Company:
Number Percentage
of shares held
Silchester International Investors Limited 53,689,024 12.33%
UBS AG 48,982,782 11.25%
Sprucegrove Investment Management Limited 27 ,909,398 6.41%
Prudential plc 2 1,1 7 1,556 4.86%
Legal & General Investment Management Limited 14,720,419 3.38%
As far as the Directors are aware there were no other notiﬁable interests.
Share Capital
Full details of share options and shares issued under the terms of the Company’s share schemes can be found in note 29 to the accounts 
on page 55. 
During the year the Electrocomponents Employee Trust (EET) purchased no shares (2004: no shares) as referred to in note 1 7 .
Political and Charitable Contributions
The Group made no political contributions during the year. Charitable contributions within the UK amounted to £29,087 (2004: £26,533) and
outside the UK amounted to £9,365 (2004: £10,202).
Annual General Meeting
The Notice of the Annual General Meeting, which will be held at 2:00 p.m. on Friday 15 July 2005 at the Company’s premises, The International
Management Centre, 5000 Oxford Business Park South, Oxford, OX4 2BH, is set out on page 59.
26 Electrocomponents plc Annual Report and Accounts 2005
Report of the Directors In addition to conducting the ordinary business, the following special business will be considered:
RENEWAL OF DIRECTORS’ AUTHORITY FOR THE PURCHASE BY THE COMPANY OF ITS OWN SHARES: This resolution will authorise market purchases
of up to 43,525,000 ordinary shares (being approximately 10% of the issued share capital as at 20 May 2005), subject to a maximum price 
of 105% of the average of the market values of the shares for the ﬁve business days preceding any purchase and a minimum price of 10p per
share. The Directors will only exercise this authority when satisﬁed it is in the best interests of shareholders and that any purchase will have 
a beneﬁcial impact on earnings per share, having ﬁrst considered other investment opportunities open to the Company. Your Directors expect
to ask shareholders to approve renewal of the authority each year. 2 1,966,984 options to subscribe for equity shares were outstanding as at
20 May 2005, representing 5.05% of the issued share capital. If this resolution is passed and the full authority to buy back shares is used, then
outstanding options to subscribe for equity shares will represent 5.6 1% of the issued share capital.
Listed companies are now permitted, subject to certain restrictions, to hold their own shares which they purchase in Treasury for resale or
transfer at a later date, rather than being obliged to cancel them. If the Company were to purchase any of its own shares pursuant to the
authority referred to above, it would consider holding them as treasury stock provided that the number does not at any time exceed 10% of 
the Company’s issued share capital. This would provide the Company with additional ﬂexibility in the management of its capital base. As at 
20 May 2005, the Company held no ordinary shares in Treasury.
ALTERATION OF THE ARTICLES OF ASSOCIATION REGARDING INDEMNITIES FOR DIRECTORS AND OFFICERS: The Company’s Articles of Association
currently provide that every director, auditor or other ofﬁcer of the Company shall, in certain circumstances, be indemniﬁed out of the assets 
of the Company against any liability incurred by him in defending any proceedings, whether civil or criminal in relation to the affairs of the
Company. The resolution will, if approved, alter the Articles of Association to enable the Company to make use of the changes introduced by the
Companies (Audit, Investigations and Community Enterprise) Act 2004 that relax certain of the prohibitions on companies indemnifying their
directors against liability and permit companies to pay directors’ defence costs as they are incurred.
By order of the Board
Carmelina Carfora
Company Secretary
25 May 2005 
Electrocomponents plc Annual Report and Accounts 2005 27
Report of the Directors Remuneration Report
28 Electrocomponents plc Annual Report and Accounts 2005
Remuneration Report
Remuneration Committee
Role and Membership
The long-established Remuneration Committee is responsible for recommending overall remuneration policy in respect of the Executive Directors,
the Chairman and senior managers. The Committee was chaired during the year by Dr Leslie Atkinson. The other members of the Committee over
the year were Mr Keith Hamill, Dr Dieter Lennertz, Mr Nick Temple, Mr Tim Barker until he ceased to be a member in November 2004, and Mr David
Winterbottom until his retirement at the AGM in July 2004. Mr Kevin Abbott joined the Remuneration Committee in November 2004.
The Board as a whole determines the remuneration of the Non-Executive Directors. 
During the year ended 31 March 2005 the Committee adhered to the principles and provisions of the Combined Code as it applied during that year.
In preparing this Report, the Board has followed the provisions of Section B of the Combined Code. 
Advisers
For the year under review, Kepler Associates have provided advice and data for salary reviews for the Executive Directors and senior managers
to the Remuneration Committee. The Committee has also sought advice from Mercer Human Resource Consulting with respect to pension
matters. These advisers have been appointed by the Remuneration Committee. The Chairman and Group Chief Executive Ofﬁcer attended parts
of meetings by invitation to respond to speciﬁc questions raised by the Committee and on matters relating to the performance and
remuneration of senior managers. The Company Secretary acts as Secretary to this Committee.
Remuneration Policy
Executive Directors
The objectives in future years of the remuneration policy for Executive Directors are to provide a remuneration package which is competitive
and performance-linked, to ensure that the Group can attract and retain executives who have the experience, skills and talents to operate 
and develop its businesses to their maximum potential, thereby delivering the highest level of return for shareholders. 
The components of the remuneration package for Executive Directors are:
Non-Performance Related Performance Related
• Basic Salary • Annual Bonus
• Pension • Long term Incentive
• Other Beneﬁts such as Health Insurance
The Committee strives to ensure that shareholders’ interests are best served by creating an appropriate balance between performance 
and non-performance related components of the remuneration package. 
Additionally, the Committee has begun a comprehensive review of executive remuneration, to take place over the next 1 2 months to ensure 
it reﬂects the Company’s needs, shareholders’ views and developments in market practice.
Chairman and Non-Executive Directors
Remuneration comprises an annual salary for acting as Chairman or an annual fee for the Non-Executive Directors of the Company. An
additional fee is paid to the Chairman of a Board Committee. The Chairman and Non-Executive Directors do not participate in the Company’s
incentive schemes, or annual bonus schemes, nor do they accrue any pension entitlement, although the Chairman holds options which he 
was granted when he was an Executive Director and has pension arrangements which relate to his service as an Executive Director.
No Non-Executive Director has a service contract with the Company.
The Chairman has the use of a company car and mobile phone and receives life insurance cover. Details of his service contract are set out on
page 31 of this report.
Remuneration Components for Executive Directors 
Basic Salary
In determining salary levels, the Committee takes into account comparable information for similar job functions in industrial service companies
and other companies of a similar size. Allowance is made for the international spread and competitive nature of the Group’s businesses and for
the individual’s experience, performance and contribution in the areas for which responsibility is held. Regard is also taken of salary levels
throughout the Group.
Incentive Arrangements 
Annual Bonus Plan
The aim of the Annual Bonus Plan is to ensure that the incentives for senior managers and Executive Directors are closely aligned to 
business performance. 
The plan links remuneration to ﬁnancial performance, which includes sales and proﬁts and progress towards long term objectives.
  The business targets are established by the Board and adopted by the Remuneration Committee on an annual basis and reﬂect market
conditions as well as strategic and operational factors. 
Performance targets for Executive Directors focus primarily on company performance and individual objectives. The Remuneration Committee
has discretion to vary bonus payments for participants based on other aspects of performance.
The current maximum bonus opportunity for Executive Directors is 60% of salary. On target performance would yield a bonus of 20% of salary
for each Director.
Annual bonus payments are not pensionable.
Long Term Incentive Share Option Plan (LTIOP)
The LTIOP , which replaced all other long term executive incentive plans in 2002, is designed to align long term incentives with the interests 
of shareholders. Participation in the plan extends to Executive Directors and senior managers.
Under the LTIOP , participants may be awarded options with a ten year life subject to stretching performance conditions based on total
shareholder return (TSR) (share price growth plus reinvested dividends), with no options vesting unless performance is above the median 
for the selected comparator group, and full vesting only occurring if Electrocomponents is ﬁrst out of the 14 in that group in terms of TSR. 
The Committee chose TSR because it felt it was the measure most aligned to shareholders’ interests.
Options over a total of 4,959,435 ordinary shares in the Company were granted on 11 June 2004. These options were granted at an exercise
price of 365p per share. 
TSR performance is measured over a minimum period of three years from the date of grant but, if the target is not met at all, the period will be
extended to four, and then ﬁve years from a ﬁxed base. Once the target has been met in part, however, performance will not subsequently be
retested and the unvested part of the option will lapse. If the target has not been met at all at the end of ﬁve years, the option will lapse.
For performance at or below median, no part of the option will vest. 25% of the option will vest for performance of one position above the
median with full vesting if the Company is ranked ﬁrst in the comparator group selected. Between those two levels, the option will vest on 
a sliding scale.
The Comparator Group for the grants made in 2002, 2003 and 2004 comprised:
Arrow Electronic Industries Inc Avnet Inc Brambles Industries plc Buhrmann NV
Daetwyler Holdings AG Grainger (WW) Inc Hagemeyer NV Manutan International SA 
Misumi Corporation Premier Farnell plc Rexel SA T akkt AG
Wolseley plc 
The mix of companies chosen reﬂects the business and geographic focus of the Group around the world. The Committee reviewed a range 
of benchmarks but found this comparator group, which includes our closest peers, to be the most appropriate. 
It is anticipated that awards will be made in 2005 on the same terms and using the same comparator group. No other long term incentives 
will be awarded in 2005. As part of the review mentioned earlier it is the intention of the Remuneration Committee to eliminate retesting from
future arrangements.
Long Term Incentive Plan (LTIP)
No LTIP awards have been made since June 2001, as it was replaced by the LTIOP . Under the LTIP , Executive Directors were granted conditional
shares which would vest depending upon 3 year TSR performance compared with that of an appropriate comparator group selected at the time
the award was made. The Committee chose TSR because it felt that it was the appropriate measure to reﬂect shareholder interests.
For the 1999 LTIP award, the Company’s TSR performance was ranked 15th out of 38 (against the comparator group at that point in time) as 
at 4 July 2002, which resulted in 56.7% of the award vesting against the TSR criterion. As described in previous years’ Remuneration Reports,
retention of the shares released on the vesting of the awards was made subject to continued employment of the participants until June 2005.
Details of these shares are disclosed in the Directors’ Interests table on page 24.
For the 2001 LTIP award, Electrocomponents’ TSR performance was ranked 27th out of 42 comparators which meant that none of the award
vested and the award therefore lapsed.
There are no other awards outstanding.
1988 Executive Share Option Scheme (ESOS)
Mr Butler, Mr Lawson and Mr Mason hold outstanding options under the ESOS. The last ESOS award was made to the Executive Directors and
Chairman in 1995. These options were not subject to performance conditions, in keeping with market practice at the time the scheme was
established, but were subject to minimum holding periods of three, ﬁve or seven years before they could be exercised. No further awards 
will be granted under this scheme.
Electrocomponents plc Annual Report and Accounts 2005 29
Remuneration Report Savings Related Share Option Scheme
Executive Directors can participate in the Savings Related Share Option Scheme which is open to all UK employees or, if appropriate, the
International Savings Related Share Option Scheme. Performance conditions have not been imposed as they are not permissible under UK
Inland Revenue rules for this type of scheme.
Electrocomponents Group Pension Scheme (“the Scheme”)
Executive Directors participate in the Scheme, which provides deﬁned beneﬁts on retirement. Pensionable salary is limited to basic salary,
excluding all bonuses and other beneﬁts. The pension accrual rate for Executive Directors is one-thirtieth for each year of service, subject 
to Inland Revenue restrictions. 
Normal retirement age for Executive Directors is 60. The Scheme is a funded pension arrangement providing a pension on retirement of up 
to two-thirds of pensionable earnings, or the “earnings cap” if lower. No actuarial reduction will be applied to pension beneﬁts accrued prior 
to 1 April 2003 if retirement is from age 55 or later. In the event of death before retirement, a capital sum equal to four times basic salary is
payable together with a spouse’s pension of two-thirds of the member’s prospective pension at age 60 and children’s pensions if appropriate. 
In the event of death in retirement, a spouse’s pension of two-thirds of the member’s pre-commutation pension is payable. Pensions in payment
or in deferment are guaranteed to increase annually in February by the lesser of 5% or the increase in the RPI. Additional increases are payable
at the discretion of the Company and the trustee of the Scheme.
Mr Lawson is a deferred member of the Scheme and continues to receive life insurance cover. The premium for life insurance beneﬁt for 
Mr Lawson is included in the amount shown on page 32. 
All Scheme beneﬁts are subject to Inland Revenue limits. Where such limitation is due to the “earnings cap”, arrangements may be agreed 
with individuals to compensate them for the reduction in beneﬁts, either by salary supplement or through a funded unapproved retirement
beneﬁts scheme.
Mr Hewitt has elected to receive part of his additional entitlement as contributions to a funded unapproved retirement beneﬁt scheme together
with a salary supplement in lieu of part of his unapproved pension entitlement. Mr Mason has elected to receive a salary supplement in lieu of
all of his unapproved pension entitlement. Salary supplements for both Messrs Hewitt and Mason are included in the table shown on page 32.
Mr Butler’s pension entitlement will be met from the Scheme in full as he is not subject to the “earnings cap”.
The Remuneration Committee is currently reviewing implications of the new pensions tax regime from 6 April 2006 on the Company’s pension
arrangements. Its policy will be not to take on any additional costs or liabilities as a result of the legislation.
The following table gives details for each Director of:
• The annual accrued pension payable from normal retirement age, calculated as if he had left service at the year end, i.e. 31 March 2005;
• The increase in accrued pension attributable to service as a Director during the year;
• The transfer value of the accrued beneﬁt at the year end;
• The transfer value of the accrued beneﬁt at the previous year end; and
• The increase in the transfer value over the period.
These amounts exclude any (i) beneﬁts attributable to additional voluntary contributions; and (ii) actual members’ contributions.
Disclosure of Directors’ Pension Beneﬁts for the year ended 31 March 2005 (audited)
Increase
Accrued Increase in Transfer Transfer in transfer 
Age at pension as at accrued value as at value as at value less 
31 March 31 March pension 31 March 31 March Directors’
2005 2005
b
benefits 2005
c
2004
c
contributions
d
Years£££ ££
R B Butler 45 140,252 12,834 1,379,000 1,1 7 1,000 190,455
J L Hewitt
e
57 14,167 2,067 245,000 197 ,000 42,935
R A Lawson
a
60 75,334 3,606 1,516,000 1,319,000 197 ,000
I Mason 43 23,493 4,609 208,000 153,000 49,935
Notes: (a) Mr Lawson became a deferred member of the Scheme on 20 July 2001 on his appointment as Chairman Designate. This table only reflects the scheme benefits retained, and includes credit for
transfers received and service to 20 July 2001. (b) Accrued pension benefits shown are the amounts which would be paid annually on retirement based on service to the end of the year. (c) Transfer
values have been calculated in accordance with the Guidance Note published by the Institute and Faculty of Actuaries (GN11)(Version 9.1). (d) The increase in transfer value less Directors’
contributions includes the effect of fluctuations in the transfer value due to factors beyond the control of the Company and Directors, such as stock market movements. It is calculated after deducting
the Director’s contributions. (e) Additional contributions of £103,750 were paid into a funded unapproved arrangement (FURB) for Mr Hewitt (2004: £101,368).
30 Electrocomponents plc Annual Report and Accounts 2005
Remuneration Report Other Beneﬁts
All Executive Directors are provided with a company mobile phone, a company car (or a cash allowance) and medical insurance. The taxable
value of these beneﬁts is included in the Directors’ emoluments table on page 32.
Service Contracts (not subject to audit)
All current Executive Directors have service contracts that are on a 1 2 month rolling basis. These contracts provide for 1 2 months’ notice 
by the Company and by the Executive Directors. 
Termination payments are limited to the Directors’ normal compensation, including basic salary, annual incentives and beneﬁts for the
unexpired portion of the notice period subject to performance and Remuneration Committee discretion. However, the Committee will aim 
to minimise the level of payments to that Director having regard to all circumstances, including the Company’s contractual obligations to 
the Director, the reason for the departure, and the Company’s policy to apply mitigation in the case of severance. 
The Company entered into the current contractual agreements with Mr Butler and Mr Mason on 1 March 2001 and with Mr Hewitt on 
14 March 2001. These agreements replaced all prior arrangements.
Mr Lawson entered into a service agreement as Chairman of the Company on 20 July 2001. This agreement replaced all prior arrangements.
The contract provides for 1 2 months’ notice of termination to be given by the Company or by Mr Lawson at any time. It shall automatically
terminate at the date of the Company’s Annual General Meeting in 2006 unless renewed by the Company.
External Appointments (not subject to audit)
Executive Directors are encouraged to take up one non-executive position on the boards of other companies on the condition that any fees 
are remitted to the Company.
Performance Review (not subject to audit)
The following graph shows the ﬁve year Total Shareholder Return (TSR) performance of the Company relative to both the comparator group
used for the 2002, 2003 and 2004 LTIOP grants and the FTSE All Share Index. These indices were chosen because they provide a comparison 
of the Company’s performance against the comparator group chosen for the awards made under the LTIOP , the Company’s main share incentive
scheme, and a broad equity market index. 
Brambles Industries plc who are part of the comparator group became a listed company on 31 August 2001 and have only been included in the
comparator group from this date. 
The TSR of Electrocomponents’ shares was - 1 2.2% p.a. over the period compared with -7 .7% p.a. for the LTIOP comparator group and -2.2% p.a. 
for the FTSE All Share Index.
Electrocomponents plc Annual Report and Accounts 2005 31
Remuneration Report
Value of £100 invested in Electrocomponents on 3 1 March 2000 to 31 March 2005 vs. LTIOP Comparator Group
and the FTSE All Share Index
Key: 
 Electrocomponents
 L TIOP Comparator Group
 FTSE All Share
0
20
40
60
80
1 00
1 20
Mar 05 Mar 04 Mar 03 Mar 02 Mar 01 Mar 00 Directors’ Remuneration for the year ended 31 March 2005
Salary, Annual Bonus and Other Beneﬁts (audited)
In lieu of In lieu of
Salary Salary pension pension Benefits Benefits Bonus Bonus Total Total
2005 2004 2005 2004 2005 2004 2005 2004 2005
c
2004
c
£ £ £ £ £ £ £ £ £ £
Emoluments of 
the Chairman
R A Lawson 1 78,333 160,000 – – 24,899 23,462 – – 203,232 183,462
Emoluments of 
Executive Directors
R B Butler 292,41 7 285,500 – – 9,549 13,877 – 50,000 301,966 349,377
J L Hewitt
a
375,250 366,000 1 74,088 170,17 5 26,786 23,602 – 60,000 576,1 24 6 19,777
I Mason
a
451,000 438,750 55,690 54,2 1 4 20,359 22,076 – 100,000 527 ,049 6 15,040
Totals 1,297 ,000 1,250,250 229,778 224,389 81,593 83,01 7 – 2 10,000 1,608,37 1 1,76 7 ,6 56
Fees of Non-Executive Directors
K Abbott 14,800 –
L Atkinson
b
45,083 35,000
T G Barker
b
42,333 32,000
K Hamill 35,667 32,000
F D Lennertz 44,583 40,000
N J Temple 35,667 32,000
D S Winterbottom
b c
14,41 7 35,000
Totals 1,840,92 1 1,973,656
Notes: (a) Provision of pension benefits under the Group’s approved pension arrangements is restricted for employees joining the Scheme after 1 June 1989. During the year ended 31 March 2005, Mr Hewitt
and Mr Mason have elected to receive salary supplements of £70,338 and £55,690 respectively (2004: £68,807 and £54,214) in lieu of the balance of their pension entitlements. In addition, Mr Hewitt
also elected to receive payments to a FURB of £103,750 during the year (2004: £101,368). (b) Dr Atkinson, as Chairman of the Remuneration Committee and Mr Winterbottom (until his retirement in
July) and Mr Barker (thereafter) as Chairmen of the Audit Committee, each receive an additional fee of £10,000 per annum pro rata. (c) No payments were made during the years ending 31 March 2004
or 31 March 2005 in connection with (i) compensation for loss of office, or (ii) reimbursable taxable expenses.
Directors’ Interests in Incentive Plans and Share Options (audited)
Long Term Incentive Plan (LTIP) (Note a)
Market Shares at Shares Shares at
Date of Vesting price on 31 March Granted vested Lapsed 31 March
grant date grant 2004 in FY05 in FY05 in FY05 2005
R B Butler
a
30-Jun-01 30-Jun-04 544.3p 47 ,767 – – 47 ,767 –
J.L Hewitt
a
30-Jun-01 30-Jun-04 544.3p 60,628 – – 60,628 –
R A Lawson
a
30-Jun-01 30-Jun-04 544.3p 80,837 – – 80,387 –
I Mason
a
30-Jun-01 30-Jun-04 544.3p 58,791 – – 58,791 –
Notes: (a) The awards granted under the LTIP on 30 June 2001 did not vest and so they lapsed on 30 June 2004.
32 Electrocomponents plc Annual Report and Accounts 2005
Remuneration Report Incentive Plans and Share Options (audited)
Shares under Shares under
option option
Date of Vesting Expiration Exercise 31 march Granted in Exercised Lapsed 31 March
Scheme grant date date price 2004 FY05 in FY05 in FY05 2005
R A Butler 1988 Executive 28-Jul-95 28-Jul-98 27-Jul-05 306.1p 24,750 – – – 24,750
28-Jul-95 28-Jul-00 27-Jul-05 306.1p 14,850 – – – 14,850
28-Jul-95 28-Jul-02 27-Jul-05 306.1p 9,900 – – – 9,900
Savings Related 28-Jun-03 01-Sep-06 28 Feb-07 260.0p 3,557 – – – 3,557
a
LTIOP 22-Aug-02 2 1 -Aug-05 2 1 -Aug- 12 312.0p 363,868 – – – 363,868
16-Jun-03 15-Jun-06 15-Jun- 13 349.0p 354,426 – – – 354,426
11 -Jun-04 10-Jun-07 10-Jun- 14 365.0p – 340,000 – – 340,000
Total 77 1,351 340,000 – – 1,111,35 1
J L Hewitt Savings Related 28-Jun-03 01-Sep-08 28-Feb-09 260.0p 6,125 – – – 6,125
a
LTIOP 22-Aug-02 2 1 -Aug-05 2 1 -Aug- 12 312.0p 46 1,333 – – – 46 1,333
16-Jun-03 15-Jun-06 15-Jun- 13 349.0p 454,806 – – – 454,806
11 -Jun-04 10-Jun-07 10-Jun- 14 365.0p – 435,000 – – 435,000
Total 922,264 435,000 – – 1,357 ,264
R A Lawson 1988 Executive 28-Jul-95 28-Jul-00 27-Jul-05 306.1p 54,080 – – – 54,080
28-Jul-95 28-Jul-02 27-Jul-05 306.1p 13,520 – – – 13,520
Total 67 ,600 – – – 67 ,600
I Mason 1988 Executive 28-Jul-95 28-Jul-00 27-Jul-05 306.1p 30,300 – – – 30,300
28-Jul-95 28-Jul-02 27-Jul-05 306.1p 20,200 – – – 20,200
Savings Related 28-Jun-03 01 -Sep-08 28-Feb-09 260.0p 6,125 – – – 6,125
a
LTIOP 22-Aug-02 2 1 -Aug-05 2 1 -Aug- 12 312.0p 552,300 – – – 552,300
16-Jun-03 15-Jun-05 15-Jun- 13 349.0p 545,272 – – – 545,272
11 -Jun-04 10-Jun-07 10-Jun- 14 365.0p – 525,000 – – 525,000
Total 1,154,197 525,000 – – 1,679,197
Notes: (a) Awards made under the Long Term Incentive Option Plan are subject to performance conditions set out on page 29. The closing mid-market price of the shares on 31 March 2005 was 247 .5p. 
During the year, the price of shares varied between 247 .5p and 377 .8p. No other awards have been made during the year.
By Order of the Board
Dr Leslie Atkinson 
Chairman of the Remuneration Committee
25 May 2005
Electrocomponents plc Annual Report and Accounts 2005 33
Remuneration Report Company law requires the Directors to prepare ﬁnancial statements for each ﬁnancial year which give a true and fair view of the state of affairs
of the Company and the Group and of the proﬁt or loss for that period. In preparing those ﬁnancial statements, the Directors are required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the
ﬁnancial statements; and 
• Prepare the ﬁnancial statements on a going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the ﬁnancial position
of the Company and to enable them to ensure that the ﬁnancial statements comply with the requirements of the Companies Act 1985. They
have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and
detect fraud and other irregularities. 
This report and accounts contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and
completeness of all such statements, including, without limitation, statements regarding the future ﬁnancial position, strategy, projected costs,
plans and objectives for the management of future operations of Electrocomponents plc and its subsidiaries is not warranted or guaranteed.
These statements typically contain words such as “intends”, “expects”, “anticipates”, “estimates” and words of similar import. By their nature,
forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the
future. Although Electrocomponents plc believes that the expectations reﬂected in such statements are reasonable, no assurance can be given
that such expectations will prove to be correct. There are a number of factors, which may be beyond the control of Electrocomponents plc,
which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements.
Other than as required by applicable law or the applicable rules of any exchange on which our securities may be listed, Electrocomponents plc
has no intention or obligation to update forward-looking statements contained in our report and accounts.
Directors’ responsibility for the ﬁnancial statements
34 Electrocomponents plc Annual Report and Accounts 2005
Directors’ responsibility for the ﬁnancial statements Independent auditors’ report to the members of Electrocomponents Plc
We have audited the ﬁnancial statements of Electrocomponents plc which comprises the Consolidated proﬁt and loss account, the Company
and Group balance sheets, the Consolidated cash ﬂow statement, the Consolidated statement of total recognised gains and losses, the
Principal accounting policies and notes 1 to 34. We have also audited the information in the Remuneration Report that is described 
as having been audited.
This report is made solely to the company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 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
and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors are responsible for preparing the Annual Report and the Remuneration Report. As described on page 34, this includes
responsibility for preparing the ﬁnancial statements in accordance with applicable United Kingdom law and accounting standards. Our
responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board, the Listing Rules 
of the Financial Services Authority, and by our profession’s ethical guidance.
We report to you our opinion as to whether the ﬁnancial statements give a true and fair view and whether the ﬁnancial statements and the 
part of the Remuneration Report to be audited have been properly prepared in accordance with the Companies Act 1985. We also report to you
if, in our opinion, the Report of the Directors’  is not consistent with the ﬁnancial statements, if the company has not kept proper accounting
records, if we have not received all the information and explanations we require for our audit, or if information speciﬁed by law regarding
directors’ remuneration and transactions with the group is not disclosed.
We review whether the corporate governance statement on pages 22 to 26 reﬂects the company’s compliance with the nine provisions of the
2003 FRC Code speciﬁed for our review by the Listing Rules, and we report if it does not. We are not required to consider whether the board’s
statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the group’s corporate governance
procedures or its risk and control procedures. 
We read the other information contained in the Annual Report, including the corporate governance statement and the unaudited part of the
Remuneration Report, and consider whether it is consistent with the audited ﬁnancial statements. We consider the implications for 
our report if we become aware of any apparent misstatements or material inconsistencies with the ﬁnancial statements.
Basis of audit opinion
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on 
a test basis, of evidence relevant to the amounts and disclosures in the ﬁnancial statements and the part of the Remuneration Report to be
audited. It also includes an assessment of the signiﬁcant estimates and judgements made by the directors in the preparation of the ﬁnancial
statements, and of whether the accounting policies are appropriate to the group’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufﬁcient evidence to give reasonable assurance that the ﬁnancial statements and the part of the Remuneration Report to be audited
are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the ﬁnancial statements and the part of the Remuneration Report to be audited.
Opinion
In our opinion:
• the ﬁnancial statements give a true and fair view of the state of affairs of the company and the group as at 31 March 2005 and of the proﬁt 
of the Group for the year then ended; and
• the ﬁnancial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with 
the Companies Act 1985.
KPMG Audit Plc 
Chartered Accountants
Registered Auditor
London
25 May 2005
Report of the Auditors
For the year ended 31 March 2005
Electrocomponents plc Annual Report and Accounts 2005 35
Report of the Auditors Consolidated proﬁt and loss account
For the year ended 31 March 2005
2004
2005 (as restated)
Note £m £m
Turnover 2 773.9 759.3
Cost of sales (36 1.8) (350.9)
Gross profit 41 2.1 408.4
Distribution and marketing expenses (298.8) (290.9)
Administrative expenses
– before amortisation of goodwill (8.0) (9.0)
– amortisation of goodwill (9.4) (10.2)
(1 7 .4) (19.2)
Operating profit
– before amortisation of goodwill 105.3 108.5
– amortisation of goodwill (9.4) (10.2)
95.9 98.3
Net interest payable 3 (0.9) (1.4)
Profit on ordinary activities before taxation 1, 2, 4 95.0 96.9
Profit before taxation and amortisation of goodwill 104.4 107 .1
Taxation on profit on ordinary activities 7 (30.3) (31.0)
Profit on ordinary activities after taxation 8 64.7 65.9
Dividend 9 (80.0) (79.1)
Retained loss for the financial year (15.3) (13.2)
Earnings per share
Basic 10
– before amortisation of goodwill 1 7 .0p 1 7 .5p
– after amortisation of goodwill 14.9p 15.2p
Diluted 10
– before amortisation of goodwill 1 7 .0p 1 7 .5p
– after amortisation of goodwill 14.9p 15.1p
Consolidated statement of total recognised gains and losses
For the year ended 31 March 2005
2004
2005 (as restated)
Note £m £m 
Profit for the financial year 64.7 65.9
Translation differences 1.6 (29.2)
Total recognised gains and losses relating to the year 66.3 36.7
Prior year adjustment: implementation of UITF 38 17 (1.3)
Total recognised gains and losses since last annual report 65.0
All profits and losses are stated at historical cost.
The statement of movements on Group reserves is at note 30.
The notes on pages 41 to 57 form part of these accounts.
36 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements Balance sheets
As at 31 March 2005
Group Company
2004 2004
2005 (as restated) 2005 (as restated)
Note £m £m £m £m
Fixed assets
Intangible fixed assets 11 129.6 141.8 – –
Tangible fixed assets 12 165.8 163.3 28.6 30.0 
Investments 14 0.2 0.1 393.3 377 .8 
295.6 305.2 42 1.9 407 .8 
Current assets
Stocks 18 142.3 1 28.7 – –
Debtors 19 152.4 151.6 14.6 29.3 
Investments 20 53.6 65.4 53.6 65.4 
Cash at bank and in hand 11.2 7 .9 38.1 34.2 
359.5 353.6 106.3 128.9 
Creditors: amounts falling due within one year 21 (207 .0) (2 10.0) (165.7) (200.6) 
Net current assets (liabilities) 152.5 143.6 (59.4) (7 1.7) 
Total assets less current liabilities 448.1 448.8 362.5 336.1 
Creditors: amounts falling due after more than one year 22 (103.1) (92.8) (88.8) (78.7) 
Provisions for liabilities and charges 25 (14.3) (11.6) (2.6) (2.4) 
330.7 344.4 27 1.1 255.0 
Capital and reserves
Called-up share capital 28 43.5 43.5 43.5 43.5 
Share premium account 30 38.4 38.4 38.4 38.4
Retained earnings 30 248.8 262.5 189.2 1 73.1 
Equity shareholders’ funds 330.7 344.4 27 1.1 255.0
These accounts were approved by the Board of Directors on 25 May 2005 and signed on its behalf by:
J L Hewitt
Deputy Chairman and Group Finance Director
The notes on pages 41 to 57 form part of these accounts.
Electrocomponents plc Annual Report and Accounts 2005 37
Financial Statements Consolidated cash ﬂow statement
For the year ended 31 March 2005
2004
2005 (as restated)
Note £m £m
Reconciliation of operating profit to net cash inflow from operating activities
Operating profit 95.9 98.3 
Amortisation of goodwill 9.4 10.2 
Depreciation and other amortisation 22.3 22.8 
(Increase) decrease in stocks (13.6) 1.0 
Decrease (increase) in debtors 6.2 (8.4) 
(Decrease) increase in creditors (2.8) 10.9 
Net cash inflow from operating activities 11 7 .4 134.8 
Cash flow statement
Net cash inflow from operating activities 11 7 .4 134.8 
Returns on investments and servicing of finance 32 (1.3) (1.3) 
T axation (31.2) (31.3) 
Capital expenditure 32 (23.8) (19.2) 
Free cash flow 61.1 83.0 
Equity dividends paid 9 (80.0) (75.4) 
Cash (outflow) inflow before use of liquid resources and financing (18.9) 7 .6 
Management of liquid resources 32 11.8 (41.6) 
Financing
Shares 32 – 0.1
Loans 32 14.2 42.0 
Increase in cash in the year 7. 1 8.1 
Reconciliation of net cash flow to movement in net debt
Increase in cash 7 .1 8.1
Management of liquid resources (11.8) 41.6 
Financing – loans (14.2) (42.0) 
Change in net debt relating to cash flows (18.9) 7. 7 
Translation differences (2.0) 4.7 
Change in net debt for the year (20.9) 12.4 
Net debt at the beginning of the year (34.5) (46.9) 
Net debt at the end of the year 33 (55.4) (34.5)
The notes on pages 41 to 57 form part of these accounts.
38 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements Principal accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with applicable accounting standards.
Changes in accounting policies
The accounts reflect the adoption, during the year, of UITF 38: accounting for ESOP trusts. This required a change in accounting policy and 
a restatement of prior year figures, as detailed in note 17 on page 50. 
Basis of consolidation
All subsidiary accounts are made up to 31 March and are included in the consolidated accounts. The Group accounts comprise the consolidated
accounts of the Company and its subsidiaries. A separate profit and loss account is not presented in respect of the Company, as provided by 
Section 230 of the Companies Act 1985.
Goodwill
Goodwill arising on all acquisitions prior to 31 March 1998 has been written off against reserves. On disposal of a business, the gain or loss on
disposal includes that goodwill previously written off on acquisition. Following the introduction of FRS 10 in the year ended 31 March 1999, the 
Group chose not to restate goodwill that had been eliminated against reserves.
Goodwill arising on acquisitions after 1 April 1998 is capitalised and amortised on a straight-line basis over its estimated useful life, with a
maximum of 20 years.
Other intangibles
The cost of acquired intangible assets are their purchase cost together with any incidental costs of acquisition. Amortisation is calculated to write
off the cost of the asset on a straight-line basis over its estimated useful life, with a maximum of 20 years. 
Investments in subsidiary undertakings
Investments in subsidiary undertakings including long term loans are included in the balance sheet of the Company at the lower of cost and the
expected recoverable amount. Any impairment is recognised in the profit and loss account.
Investments in associated undertakings
Investments in undertakings, other than subsidiary undertakings, in which the Group has a substantial interest (20% or more) and over which 
it exerts significant influence are treated as associated undertakings.
Translation of foreign currencies
Overseas companies’ profits, losses and cash flows are translated at average exchange rates for the year, and assets and liabilities at rates ruling
at the balance sheet date. Exchange differences arising on foreign currency net investments are taken to reserves. Transactions in foreign
currencies are recorded using the rate of exchange ruling at the date of the transaction or, if hedged forward, at the rate of exchange under the
related forward currency contract. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange
ruling at the balance sheet date and the gains and losses on translation are included in the profit and loss account.
Financial instruments
Gains and losses on hedging instruments are not recognised in the performance statements until the exchange movement on the item being
hedged is recognised.
Turnover
Turnover represents the sale of goods and services and is stated net of sales taxes. Freight recharged to customers is included within turnover. 
Operating expense classiﬁcation
Cost of sales comprises the cost of goods delivered to customers.
Distribution and marketing expenses include all operating company expenses, including freight expenses, together with the Supply Chain,
Product Management, Media Publishing, Facilities, Information Systems and e-Commerce process expenses.
Administration expenses comprise Finance, Legal and Human Resources process expenses, together with the expenses of the Group Board.
Pension costs
In the United Kingdom the Group operates a pension scheme providing beneﬁts based on ﬁnal pensionable pay for eligible employees who joined 
on or before 1 April 2004. The scheme is administered by a corporate trustee and the funds are independent of the Group’s ﬁnances. Contributions
to the scheme are charged to the proﬁt and loss account so as to spread the cost of pensions over the working lives with the Group of those
employees who are in the scheme. For employees who joined after 1 April 2004 the Group provides a deﬁned contribution pension scheme. In
addition to the UK schemes, beneﬁts are provided elsewhere in the Group through deﬁned contribution, deﬁned beneﬁt and government schemes.
The Group has decided not to adopt FRS 17 Retirement benefits early. The transitional disclosures required by FRS 17 can be found in note 6.
Electrocomponents plc Annual Report and Accounts 2005 39
Financial Statements Principal accounting policies continued
Long Term Incentive Plan and Long Term Incentive Share Option Plan
The consolidated profit and loss account includes the income and administration expenses of the Long Term Incentive Plan (LTIP) and the 
Long Term Incentive Share Option Plan (LTIOP), and the consolidated and Company balance sheets include the assets and liabilities of the 
Plans. Shares in the Company, held by the trust established to administer the Plans, are shown within reserves.
Government grants
Government grants related to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation
on the asset to which the grants relate. The amortised balance of capital grants is included within creditors.
Depreciation
No depreciation has been charged on freehold land. Other assets have been depreciated to residual value, on a straight-line basis at the following
annual rates:
Freehold buildings 2%
Leasehold premises term of lease, not exceeding 50 years
Warehouse systems 10-20%
Motor vehicles 25%
Mainframe computer equipment 20%
Network computer equipment 33%
Portable computers 50%
Computer software costs 12.5-50%
Other office equipment 20%
Stocks
Stocks are valued at the lower of cost and net realisable value. Work in progress and goods for resale include attributable overheads.
Catalogue costs
Prior to the issue of a catalogue, all related costs incurred are accrued and carried as a prepayment. On the issue of a catalogue, these costs are
written off over the life of the catalogue, which mainly varies between six and twelve months. Major investments in new catalogue production
systems are written off over the period during which the benefits of those investments are anticipated, such period not to exceed three years.
Net debt
Net debt comprises net cash and liquid resources less borrowings. Net cash comprises cash in hand and held with qualifying ﬁnancial institutions
in current accounts or overnight deposits net of overdrafts with qualifying financial institutions. Liquid resources include government securities,
investment in money market funds and term deposits with qualifying financial institutions and are classed as investments under current assets.
Borrowings represent term loans from qualifying financial institutions together with capital instruments classified as liabilities under FRS 4.
Deferred taxation
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and
accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19.
Leases
The Group has no material assets held under finance leases.
Operating lease rentals are charged to the profit and loss account on a straight-line basis over the course of the lease period. The benefits of rent
free periods and similar incentives are credited to the profit and loss account on a straight-line basis over the period up to the date on which the
lease rentals are adjusted to the prevailing market rate.
Employee Share Trust
Where shares are issued to the Electrocomponents Qualifying Employee Share Ownership Trust (QUEST) an amount representing the difference
between market value and the option price is transferred from the profit and loss account to the share premium account.
40 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements Notes to the consolidated accounts 
For the year ended 31 March 2005
1 Analysis of income and expenditure
This analysis reconciles the Companies Act analysis shown in the Profit and Loss Account to the segmental analysis shown in note 2.
2004
2005 (as restated)
£m £m
Turnover 773.9 759.3
Cost of sales (36 1.8) (350.9)
Distribution and marketing expenses (227 .3) (222.3)
Contribution – before amortisation of goodwill 184.8 186.1
Distribution and marketing expenses within Process costs (7 1.5) (68.6)
Administration expenses – before amortisation of goodwill (8.0) (9.0)
Group Process costs (79.5) (77 .6)
Administration expenses – amortisation of goodwill on the acquisition of Allied Electronics Inc (9.2) (10.0)
Administration expenses – amortisation of goodwill on the acquisition of RS Components AS (Norway) (0.2) (0.2)
Net interest payable (0.9) (1.4)
Profit before taxation 95.0 96.9
2 Segmental analysis
2005 2004
By geographical destination £m £m 
Turnover: United Kingdom 345.2 348.2
Rest of Europe 247 .6 245.0
North America 111.8 102.2
Japan 17 .0 14.4
Rest of World 52.3 49.5
773.9 759.3
2005 2004
Inter- Inter-
Total segment Total segment
sales sales Turnover sales sales Turnover
By geographical origin £m £m £m £m £m £m
Turnover: United Kingdom 450.1 (91.3) 358.8 442.7 (81.7) 36 1.0
Rest of Europe 249.2 (5.7) 243.5 247 .0 (5.9) 241.1
North America 112.9 (0.1) 112.8 103.0 (0.2) 102.8
Japan 1 7 .0 – 1 7 .0 14.4 – 14.4
Rest of World 43.6 (1.8) 41.8 42.5 (2.5) 40.0
872.8 (98.9) 773.9 849.6 (90.3) 759.3
2004
2005 (as restated)
£m £m 
Profit before taxation: United Kingdom 107 .5 11 7 .8
Rest of Europe 56.0 51.0
North America 15.8 13.3
Japan 1.5 0.0 
Rest of World 4.0 4.0
Contribution – before amortisation of goodwill 184.8 186.1
Group Process costs (79.5) (77 .6)
Amortisation of goodwill – Allied (North America) (9.2) (10.0)
Amortisation of goodwill – RS Norway (Rest of Europe) (0.2) (0.2)
Net interest payable (0.9) (1.4)
95.0 96.9
Electrocomponents plc Annual Report and Accounts 2005 41
Financial Statements Notes to the consolidated accounts continued
For the year ended 31 March 2005
2 Segmental analysis continued
2005 2004
(as restated)
By geographical location £m £m
Net assets: United Kingdom 21 7 .2 206.3
Rest of Europe 69.3 68.9
North America 28.3 23.5
Japan 3.2 2.4
Rest of World 23.9 22.2
Net operating assets (excluding goodwill) 341.9 323.3
Net debt (55.4) (34.5)
Unallocated net assets 44.2 55.6
330.7 344.4
Unallocated net assets comprise:
Intangible fixed assets:
goodwill – Allied (North America) 129.0 1 41.1
goodwill – RS Norway (Rest of Europe) 0.3 0.4
other intangibles 0.3 0.3
Corporate tax (16.3) (19.8)
Proposed dividend (54.8) (54.8)
Provisions for liabilities and charges (14.3) (11.6)
44.2 55.6
3 Net interest payable
2005 2004
£m £m
Interest receivable 3.6 1.5
Interest payable (4.5) (2.9)
(0.9) (1.4)
4 Proﬁt on ordinary activities before taxation
2005 2004
Profit before taxation is stated after charging (crediting): £m £m
Remuneration of the auditors and their associates:
audit and expenses 0.6 0.6
taxation services and advice 0.2 0.2
other consultancy services worldwide 0.1 0.2
Depreciation 22.5 23.1
Amortisation of goodwill 9.4 10.2
Amortisation of government grants (0.3) (0.3)
Loss on disposal of fixed assets 0.1 –
Hire of plant and machinery 3.3 3.1
The fee in respect of the audit of the Company is £60,000 (2004: £52,000).
42 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements 5 Employees
Numbers employed 2005 2004
The average number of employees during the year was:
Management and administration 32 1 334
Distribution and marketing 4,672 4,639
4,993 4,973
Of these staff, 2,331 were employed in the United Kingdom (2004: 2,275).
Aggregate employment costs £m £m
Wages and salaries 116.9 111.0
Social security costs 13.9 13.6
Pension costs 11.8 9.7
142.6 134.3
The remuneration of individual Directors is detailed on page 32.
6 Pension schemes
The funding of the United Kingdom defined benefit scheme is assessed in accordance with the advice of independent actuaries. The pension
costs for the year ended 31 March 2005 amounted to £8.1m (2004: £5.7m). In addition, the contributions paid by the Group to the defined
contribution section of the Scheme in the year ended 31 March 2005 amounted to £0.4m (2004: £0.2m) and contributions to funded unapproved
retirement benefit schemes of £0.3m (2004: £0.3m).
The most recent valuation (carried out in 2004) adopted a market related approach to funding using the projected unit credit method. The
assumptions underlying the calculation of the liabilities were derived by reference to the gross redemption yield on long term gilts in conjunction
with a pre-retirement equity enhancement, consistent with market conditions at the time of the valuation.
The principal assumptions applied in the 2004 valuation were therefore as follows:
Past Future 
service service
Investment return:
before retirement 6.75% 7 .50%
after retirement 5.00% 5.75%
Rate of future earnings inflation 4.00% 4.00%
Rate of increase in pensions payment 3.00% 3.00%
At the date of the 2004 valuation, the market value of the assets of the scheme was £173.2m, and the actuarial valuation of the assets covered
78% of the benefits that had accrued to the members after allowing for expected future increases in earnings. The corresponding deficit
amounted to £47 .7m. In order to eliminate this deficit, the Group is making annual payments of £4.3m (increasing at 3% per annum) over a
period of 15 years to the scheme. This deficit funding is included in the £8.1m above. The next valuation will be carried out at 31 March 2007 .
Under the statutory minimum funding requirement, the Scheme’s funding level is estimated at between 135% and 140% as at 31 March 2005.
In addition to the UK scheme outlined above there are certain pension benefits provided on a defined contribution basis in Australia and
North America amounting to £0.7m (2004: £0.7m), on a defined benefit basis in Germany and Ireland amounting to £0.4m (2004: £0.4m),
and via government schemes in France, Italy, Denmark and North Asia amounting to £1.6m (2004: £1.8m).
FRS 1 7 Disclosure
The disclosures required by FRS 17 in the third transitional year of adoption are set out below.
The Electrocomponents Group operates defined benefit schemes in the UK, Germany and the Republic of Ireland. The German scheme is
unfunded, in line with local practice. The last actuarial valuation of the UK scheme was carried out as at 31 March 2004 and has been updated 
to 31 March 2005 by a qualified independent actuary in accordance with FRS 17 . The last actuarial valuations of the German and Irish schemes
were carried out as at 31 March 2005 by the respective independent scheme actuaries in accordance with the requirements of FRS 17 .
Electrocomponents plc Annual Report and Accounts 2005 43
Financial Statements Notes to the consolidated accounts continued
For the year ended 31 March 2005
6 Pension schemes continued
The principal assumptions used in the valuations of the liabilities of the Group’s schemes under FRS 17 are:
2005 2004 2003
United Republic United Republic United Republic
Kingdom Germany of Ireland Kingdom Germany of Ireland Kingdom Germany of Ireland
Discount rate 5.40% 4.50% 4.50% 5.40% 5.25% 5.25% 5.50% 5.50% 5.50%
Rate of increase 
in salaries 3.90% 3.00% 4.00% 4.65% 3.00% 4.00% 4.25% 3.00% 4.00%
Rate of increase of 
pensions in payment 2.90% 2.00% 2.00% 2.90% 2.00% 2.00% 2.50% 2.00% 2.00%
Inflation assumption 2.90% 2.00% 2.00% 2.90% 2.00% 2.00% 2.50% 2.00% 2.00%
The expected long term rates of return on the schemes’ assets as at 31 March were:
2005 2004 2003
United Republic United Republic United Republic
Kingdom Germany of Ireland Kingdom Germany of Ireland Kingdom Germany of Ireland
Equities 6.95% n/a 6.70% 7 .00% n/a 7 .30% 6.75% n/a 7 .40%
Corporate bonds 4.65% n/a n/a 4.65% n/a n/a 4.75% n/a n/a
Government bonds 3.95% n/a 3.70% 4.00% n/a 4.30% 3.75% n/a 4.40%
Cash 4.00% n/a n/a 3.25% n/a n/a 3.00% n/a n/a
Other n/a n/a 4.70% n/a n/a 5.30% n/a n/a 5.40%
The valuations of the assets of the schemes as at 31 March were:
2005 2004 2003
United Republic United Republic United Republic
Kingdom Germany of Ireland Kingdom Germany of Ireland Kingdom Germany of Ireland
Valuation Valuation Valuation Valuation Valuation Valuation Valuation Valuation Valuation
£m £m £m £m £m £m £m £m £m
Equities 143.5 n/a 1.1 1 27 .7 n/a 0.8 96.8 n/a 0.6
Corporate bonds 18.4 n/a – 14.3 n/a – 13.0 n/a –
Government bonds 32.7 n/a 0.2 25.7 n/a 0.2 23.1 n/a 0.2
Cash 3.4 n/a – 3.7 n/a – 1.6 n/a –
Other – n/a – – n/a 0.1 – n/a 0.3
Total market value 
of assets 198.0 – 1.3 1 7 1.4 n/a 1.1 134.5 n/a 1.1
The valuations of the schemes as at 31 March were:
2005 2004
United Republic United Republic
Kingdom Germany of Ireland Total Kingdom Germany of Ireland Total
Valuation Valuation Valuation Valuation Valuation Valuation Valuation Valuation
£m £m £m £m £m £m £m £m 
Total market value of assets 198.0 – 1.3 199.3 171.4 – 1.1 172.5
Present value of scheme liabilities (239.3) (5.3) (1.7) (246.3) (2 1 7 .6) (3.6) (1.2) (222.4)
Deficit in the scheme (41.3) (5.3) (0.4) (47 .0) (46.2) (3.6) (0.1) (49.9)
Related deferred tax asset 12.4 2.1 0.1 14.6 13.9 1.4 – 15.3
Net pension liability (28.9) (3.2) (0.3) (32.4) (32.3) (2.2) (0.1) (34.6)
The deficit of £3.2m in the German scheme is financed through existing book reserves established within the German accounts.
In addition, the value of the assets and liabilities held in respect of AVCs amounted to £0.9m as at 31 March 2005 (2004: £0.9m). The value of the
assets and liabilities held in respect of the deﬁned contribution section of the UK scheme amounted to £1.0m as at 31 March 2005 (2004: £0.2m).
If the above pension liability was recognised in the financial statements, the Group’s net assets and profit and loss reserve as at 
31 March would be as follows:
2005 2004
Profit
Profit and lossNet
and loss Net reserve assets
reserve assets (as restated) (as restated)
£m £m £m £m
As stated excluding pension liability and SSAP 24 balances 249.3 329.5 267 .0 347 .2
Net pension liability (32.4) (32.4) (34.6) (34.6)
Including net pension liability 2 16.9 297 .1 232.4 312.6
44 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements 6 Pension schemes continued
The amounts charged to the profit and loss account under FRS 17 would have been:
2005 2004
United Republic United Republic
Kingdom Germany of Ireland Total Kingdom Germany of Ireland Total
£m £m £m £m £m £m £m £m
Current service cost (8.9) (0.5) (0.1) (9.5) (8.0) (0.5) – (8.5)
Past service cost –– –– – – – –
Total charge to operating profit (8.9) (0.5) (0.1) (9.5) (8.0) (0.5) – (8.5)
Interest cost (12.0) (0.2) (0.1) (12.3) (9.9) (0.2) (0.1) (10.2)
Expected return on assets 11.1 – 0.1 11.2 8.2 – 0.1 8.3
Net debit to other finance expense (0.9) (0.2) – (1.1) (1.7) (0.2) – (1.9)
Total profit and loss pension charge (9.8) (0.7) (0.1) (10.6) (9.7) (0.7) – (10.4)
The amount included within the Group statement of total recognised gains and losses would have been:
2005
United Republic
Kingdom Germany of Ireland Total
£m £m £m £m
Actual less expected return on scheme assets 4.2 n/a – 4.2
– as a % of scheme assets 2.1% 0.0%
Experience gains and losses arising on the scheme liabilities 7 .7 (0.1) – 7 .6
– as a % of scheme liabilities (3.2)% 1.9% 0.0%
Changes in assumptions underlying the present value of the scheme liabilities (10.1) (0.8) (0.3) (11.2)
Actuarial gain (loss) recognised in Group statement of total recognised gains and losses 1.8 (0.9) (0.3) 0.6
– as a % of scheme liabilities (0.8)% 1 7 .0% 1 7 .6%
2004
United Republic
Kingdom Germany of Ireland Total
£m £m £m £m
Actual less expected return on scheme assets 25.3 n/a 0.1 25.4
– as a % of scheme assets 14.8% 9.1%
Experience gains and losses arising on the scheme liabilities (4.4) 0.1 – (4.3)
– as a % of scheme liabilities 2.0% (2.8)% 0.0%
Changes in assumptions underlying the present value of the scheme liabilities (22.1) (0.2) (0.1) (22.4)
Actuarial loss recognised in Group statement of total recognised gains and losses (1.2) (0.1) – (1.3)
– as a % of scheme liabilities 0.6% 2.8% 0.0%
2003
United Republic
Kingdom Germany of Ireland Total
£m £m £m £m
Actual less expected return on scheme assets (48.9) n/a (0.4) (49.3)
– as a % of scheme assets (36.4)% (36.4)%
Experience gains and losses arising on the scheme liabilities (1.4) 0.1 – (1.3)
– as a % of scheme liabilities 0.8% (3.3)% 0.0%
Changes in assumptions underlying the present value of the scheme liabilities (9.3) (0.3) – (9.6)
Actuarial loss recognised in Group statement of total recognised gains and losses (59.6) (0.2) (0.4) (60.2)
– as a % of scheme liabilities 34.1% 6.7% 30.8%
Electrocomponents plc Annual Report and Accounts 2005 45
Financial Statements Notes to the consolidated accounts continued
For the year ended 31 March 2005
6 Pension schemes continued
The movement in deficit during the year would have been:
United Republic
Kingdom Germany of Ireland Total
£m £m £m £m
Deficit in scheme at the beginning of the year (46.2) (3.6) (0.1) (49.9)
Movement in year:
Current service cost (8.9) (0.5) (0.1) (9.5)
Past service cost –– ––
Contributions 12.9 0.1 0.1 13.1
Other finance expense (0.9) (0.2) – (1.1)
Actuarial gain (loss) 1.8 (0.9) (0.3) 0.6
Exchange differences – (0.2) – (0.2)
Deficit in scheme at the end of the year (41.3) (5.3) (0.4) (47 .0)
7Taxation
2005 2004
Taxation on the profit of the Group £m £m
United Kingdom corporation tax at 30% 24.6 33.2
United Kingdom deferred taxation 2.5 3.0
Double tax relief (6.8) (12.6)
20.3 23.6
Overseas taxation – current 9.8 8.8
Overseas taxation – deferred 0.2 (1.4)
30.3 31.0
All deferred taxation relates to the origination and reversal of timing differences.
Current tax is reconciled to a notional 30% of profit before taxation as follows:
Expected tax charge 28.5 29.0
Overseas tax rates 1.4 1.1
Utilisation of tax losses – (0.2)
Creation of tax losses 1.8 3.1
Timing differences – capital allowances (1.5) (0.9)
Timing differences – goodwill deduction (1.1) (1.2)
Timing differences – other (1.5) 0.9
Other – (2.4)
27 .6 29.4
8 Proﬁt for the ﬁnancial year
2004
2005 (as restated)
£m £m
Dealt with in the accounts of the Company 96.1 55.7
Retained by subsidiaries (31.4) 10.2
64.7 65.9
46 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements 9 Dividends
2005 2004
Profit and loss account £m £m
Interim dividend paid – 5.8p (2004: 5.6p) 25.2 24.3
Final dividend proposed – 12.6p (2004: 12.6p) 54.8 54.8
80.0 79.1
Cash flow statement
Final dividend for the year ended 31 March 2004 54.8 51.1
Interim dividend for the year ended 31 March 2005 25.2 24.3
80.0 75.4
10 Earnings per share
2004
2005 (as restated)
£m £m
Profit on ordinary activities after taxation 64.7 65.9
Amortisation of goodwill (excluding tax effect) 9.4 10.2
Profit on ordinary activities after taxation and before amortisation of goodwill 74.1 76.1
Weighted average number of shares 434,902,965 434,881,750
Dilutive effect of share options 92,751 709,285
Diluted weighted average number of shares 434,995,7 16 435,591,035
pence pence
Basic earnings per share
Before amortisation of goodwill 1 7.0 1 7.5
After amortisation of goodwill 14.9 15.2
Diluted earnings per share
Before amortisation of goodwill 1 7 .0 1 7 .5
After amortisation of goodwill 1 4.9 15.1
11 Intangible ﬁxed assets
Group
Other
Goodwill intangibles Total
Cost £m £m £m
At 1 April 2004 185.9 0.3 186.2
Translation differences (3.9) – (3.9)
At 31 March 2005 182.0 0.3 182.3
Amortisation
At 1 April 2004 44.4 – 44.4
Charged in the year 9.4 – 9.4
Translation differences (1.1) – (1.1)
At 31 March 2005 52.7 – 52.7
Net book value
At 31 March 2005 129.3 0.3 129.6
At 31 March 2004 141.5 0.3 141.8
There are no Company intangible fixed assets (2004: nil).
Electrocomponents plc Annual Report and Accounts 2005 47
Financial Statements Notes to the consolidated accounts continued
For the year ended 31 March 2005
12 T angible ﬁxed assets 
Group Company
Land and Plant and Computer Land and Plant and Computer
buildings machinery systems Total buildings machinery systems Total
Cost £m £m £m £m £m £m £m £m 
At 1 April 2004 94.1 97 .4 106.1 297 .6 31.1 8.6 0.5 40.2
Additions 0.1 4.7 20.3 25.1 – – 0.1 0.1
Disposals – (1.4) (2.2) (3.6) – – (0.1) (0.1)
Reclassification – (0.2) 0.2 – – – – –
Translation differences 0.8 0.3 0.1 1.2 – – – –
At 31 March 2005 95.0 100.8 124.5 320.3 31.1 8.6 0.5 40.2
Depreciation
At 1 April 2004 19.6 66.8 47 .9 134.3 3.3 6.4 0.5 10.2
Charged in the year 1.9 7 .8 12.8 22.5 0.5 0.9 – 1.4
Disposals – (1.2) (1.5) (2.7) – – – –
Reclassification – (0.1) 0.1 – – – – –
Translation differences 0.1 0.2 0.1 0.4 – – – –
At 31 March 2005 2 1.6 73.5 59.4 154.5 3.8 7 .3 0.5 11.6
Net book value
At 31 March 2005 73.4 27 .3 65.1 165.8 27 .3 1.3 – 28.6
At 31 March 2004 74.5 30.6 58.2 163.3 27 .8 2.2 – 30.0
Group Company
2005 2004 2005 2004
Net book value of land and buildings £m £m £m £m 
Freehold land 11.4 11.3 6.4 6.4
Freehold buildings 57 .2 58.2 20.9 2 1.4
Long leasehold 0.6 0.6 – –
Short leasehold 4.2 4.4 – –
73.4 74.5 27 .3 27 .8
Net book value of plant and machinery
Plant and machinery 24.5 27 .1 1.3 2.1
Other office equipment 1.9 2.5 – 0.1
Motor vehicles 0.9 1.0 – –
27 .3 30.6 1.3 2.2
Net book value of computer systems 65.1 58.2 – –
All classes of tangible fixed assets are depreciated except for freehold land.
13 Capital commitments
Group Company
2005 2004 2005 2004
£m £m £m £m 
Contracted capital expenditure at 31 March, for which no provision
has been made in these accounts 0.5 1.6 – –
1 4 Investments
GroupCompany
2004 2004
2005 (as restated) 2005 (as restated)
£m £m £m £m 
Subsidiary undertakings – – 393.3 377 .8
Associated undertakings 0.2 0.1 – –
0.2 0.1 393.3 377 .8
48 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements 15 Subsidiary undertakings
Shares Loans Total 
Cost £m £m £m 
At 1 April 2004 1 75.1 2 18.1 393.2 
Additions – 15.5 15.5
Disposals/repayments –– –
At 31 March 2005 1 75.1 233.6 408.7
Provisions
At 1 April 2004 – 15.4 15.4 
Released in the year –– –
At 31 March 2005 –15.415.4
Net book value
At 31 March 2005 1 75.1 2 18.2 393.3
At 31 March 2004 1 75.1 202.7 377 .8
16 Principal subsidiary undertakings and associated undertakings
Principal location Country of incorporation
Mail order of electronic, electrical and mechanical products
RS Components Pty Limited* Sydney Australia
RS Components GesmbH* Gmünd Austria
Allied Electronics (Canada) Inc.* Ottawa Canada
RS Componentes Electrónicos Limitada* Santiago Chile
RS Components A/S* Copenhagen Denmark
Radiospares Composants SNC* Beauvais France
RS Components GmbH* Frankfurt Germany
RS Components Limited* Kowloon Hong Kong
RS Components & Controls (India) Ltd† New Delhi India
RS Components SpA* Milan Italy
RS Components KK* Yokohama Japan
RS Components Sdn Bhd* Kuala Lumpur Malaysia
RS Components BV* Haarlem Netherlands
RS Components Limited* Auckland New Zealand
RS Components AS* Haugesund Norway
RS Components (Shanghai) Company Ltd* Shanghai People’s Republic of China
Radionics Limited* Dublin Republic of Ireland
RS Components Pte Limited* Singapore Singapore
Amidata SA* Madrid Spain
RS Components AB* Vällingby Sweden
RS Components Limited Corby United Kingdom
Allied Electronics Inc.* Fort Worth, TX United States of America
Holding and Management Companies
Electrocomponents France SARL* Beauvais France
Electrocomponents UK Limited Oxford United Kingdom
RS Components Holdings Ltd* Oxford United Kingdom
Electrocomponents North America, Inc.* Laytonsville, MD United States of America
Except as stated below all of the above are wholly owned. Those companies marked with an asterisk are indirectly owned.
The companies operate within their countries of incorporation. RS Components Limited (UK) exports to most countries where we do not have a
trading company and operates branch offices in Japan, South Africa, Taiwan, and the Philippines. 
RS Components Limited also operates under the names of RS Calibration, RS Mechanical and RS Health & Safety in the United Kingdom. 
Notes: † RS Components & Controls (India) Ltd (RSCC) is a joint venture with Controls & Switchgear Company Ltd, a company registered in India. The authorised share capital of this company is Rs20m, of which
Rs18m is issued and owned in equal shares by Electrocomponents UK Limited and its joint venture partner. RS Components Limited supplies product and catalogues to RSCC, while office space 
and distribution network are provided by Controls & Switchgear. During the year ended 31 March 2005 the Group made sales of £0.5m (2004: £0.5m) to RSCC and supplied catalogues at a cost to RSCC 
of £0.1m (2004: £0.1m). RSCC is treated in the accounts as an associated undertaking.
Electrocomponents plc Annual Report and Accounts 2005 49
Financial Statements Notes to the consolidated accounts continued
For the year ended 31 March 2005
1 7 Own shares
UITF 38: Accounting for ESOP Trusts, effective for periods ending on or after 22 June 2004, requires the assets and liabilities of the Group’s ESOP
trust to be recognised in the Group’s financial statements where there is defacto control of those assets and liabilities. The Company’s own
shares held by the ESOP trust should be deducted from shareholders’ funds until they vest unconditionally with employees. Prior to the adoption
of UITF 38, the Company’s own shares held by the ESOP trust were recognised as an asset on the balance sheet at the lower of cost and net
realisable value. 
Compliance with UITF 38 has reduced the 2004 investments and shareholders’ funds by £1.3m and increased profit for the year ended 
31 March 2004 by £0.2m. The estimated impact on the current year’s profit if UITF 38 had not been adopted would have been to reduce 
net profit by £0.2m. The new standard has no impact on cash flows.
During the year no ordinary shares in the Company were purchased by the trustees (2004: none). At 31 March 2005, a total of 308,417 
(2004: 308,417) ordinary shares in the Company were held by the Electrocomponents Employee Trust, all of which were under option to
employees for a nominal consideration. The market value of the shares at 31 March 2005 was £763,332.
At 31 March 2005, a total of 40,358 (2004: 40,826) ordinary shares in the Company were also held by the QUEST, all of which were under option
to employees as detailed in note 29. The market value of the shares at 31 March 2005 was £99,886.
18Stock
Group
2005 2004
£m £m
Raw materials and consumables 1.9 2.3
Work in progress 2.5 2.6
Finished goods and goods for resale 13 7 .9 123.8
142.3 1 28.7
There is no Company stock (2004: nil).
19 Debtors
Group Company
2005 2004 2005 2004
£m £m £m £m 
Trade debtors 126.9 129.0 – –
Amounts owed by subsidiary undertakings – – 11.9 26.9
Amounts owed by associated undertakings 0.3 0.7 – –
Other debtors 3.8 4.0 0.1 0.4
Corporate tax 2.2 2.0 – –
Prepaid catalogue expenses 8.3 8.1 – –
Other prepayments and accrued income 5.8 5.7 0.8 0.8
Amounts falling due within one year 147 .3 149.5 12.8 28.1
Other debtors falling due after more than one year:
Corporate tax 0.2 0.1 – –
Prepaid pension costs 4.1 1.2 1.8 1.2
Other debtors 0.8 0.8 – –
152.4 15 1.6 14.6 29.3
20 Investments – current assets
Group Company
2005 2004 2005 2004
£m £m £m £m 
Bank deposits 53.6 65.4 53.6 65.4
50 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements 2 1 Creditors: amounts falling due within one year
Group Company
2005 2004 2005 2004
£m £m £m £m 
Bank overdrafts (unsecured) 2.2 0.7 21.9 57 .3
Current instalments of loans (see note 23) 25.5 24.2 24.9 23.6
Trade creditors 70.6 70.1 – –
Amounts owed to subsidiary undertakings – – 6 1.8 6 1.6
Corporate tax 18.7 21.9 – 0.3
Other taxation and social security 9.7 10.5 0.1 0.1
Other creditors 4.8 7.0 0.1 0.3
Government grants 0.3 0.3 – –
Accruals and deferred income 20.4 20.5 2.1 2.6
Proposed dividend 54.8 54.8 54.8 54.8
207 .0 2 10.0 165.7 200.6
22 Creditors: amounts falling after more than one year
Group Company
2005 2004 2005 2004
£m £m £m £m
Loans repayable after more than one year (see note 23) 92.5 82.9 88.8 78.7
Other creditors 5.8 4.9 – –
Government grants 4.8 5.0 – –
103.1 92.8 88.8 78.7
23 Loans
Group Company
2005 2004 2005 2004
£m £m £m £m 
Australian Dollar bank loans 3.4 3.6 3.4 3.6
Euro bank loans 4.3 4.8 – –
Hong Kong Dollar bank loans 6.8 3.8 6.8 3.8
Japanese Yen bank loans 33.6 32.1 33.6 32.1
New Zealand Dollar bank loans – 0.3 – 0.3
Singapore Dollar bank loans 2.3 2.8 2.3 2.8
South African Rand bank loans 5.3 5.2 5.3 5.2
US Dollar bank loans 62.3 54.5 62.3 54.5
118.0 107 .1 11 3.7 102.3
Amounts falling due within one year or on demand (25.5) (24.2) (24.9) (23.6)
92.5 82.9 88.8 78.7
Loans repayable in more than one but not more than two years 0.6 0.6 – –
Loans repayable in more than two but not more than five years 90.7 80.5 88.8 78.7
Loans repayable in more than five years 1.2 1.8 – –
92.5 82.9 88.8 78.7
The bank loans are at variable rates of interest and are unsecured.
Electrocomponents plc Annual Report and Accounts 2005 51
Financial Statements Notes to the consolidated accounts continued
For the year ended 31 March 2005
24 Financial risk management
For the purpose of these disclosures the Group has excluded short term debtors and creditors where permitted by FRS 13, the accounting
standard on derivatives and other financial instruments.
Further information on Treasury and financial management is included in the Operating and Financial Review.
(a) Interest rate risk
The interest rate profile of the Group’s financial assets and financial liabilities at 31 March is set out below:
2005 2004
Financial Financial
assets on assets on
Floating rate which no Floating rate which no 
financial interest is financial interest is 
assets receivable Total assets receivable Total 
Financial assets £m £m £m £m £m £m
Euro 1 7 .5 0.3 1 7 .8 13.7 0.3 14.0
Sterling 44.6 – 44.6 57 .0 – 57 .0
US Dollars –– – 0.1 – 0.1
Other 2.7 0.5 3.2 2.5 0.5 3.0
Total financial assets 64.8 0.8 65.6 73.3 0.8 74.1
2005 2004
At 31 March the financial assets of the Group comprised: £m £m
Debtors due after more than one year 0.8 0.8
Investments 53.6 65.4
Cash at bank and in hand 11.2 7.9
65.6 74.1
Floating rate financial assets comprise: bank deposits, bearing interest at rates fixed in advance for periods ranging from overnight to 12 months
by reference to the relevant inter-bank rate; money market fund investments, bearing interest rates close to the overnight inter-bank rates; and
current account cash balances, typically bearing nominal rates of interest.
2005 2004
Fixed rate Floating rate Fixed rate Floating rate
financial financial financial financial
liabilities liabilities Total liabilities liabilities Total
Financial liabilities £m £m £m £m £m £m
Australian Dollars – 3.6 3.6 – 3.6 3.6
Euro –5.15.1 4.8 0.4 5.2
Hong Kong Dollars – 6.9 6.9 – 3.8 3.8
Japanese Yen – 33.6 33.6 – 32.4 32.4
Singapore Dollars – 2.9 2.9 – 2.8 2.8
South African Rand – 5.6 5.6 – 5.2 5.2
US Dollars – 62.3 62.3 – 54.5 54.5
Other – 0.2 0.2 – 0.3 0.3
Total financial liabilities – 120.2 120.2 4.8 103.0 107 .8
2005 2004
At 31 March the financial liabilities of the Group comprised: £m £m
Bank overdrafts repayable on demand (unsecured) 2.2 0.7
Current instalments of loans (see note 23) 25.5 24.2
Loans repayable between one and two years (see note 23) 0.6 0.6
Loans repayable between two and five years (see note 23) 90.7 80.5
Loans repayable in more than five years (see note 23) 1.2 1.8
120.2 107 .8
The floating rate financial liabilities comprise bank borrowings, bearing interest at rates fixed in advance for periods ranging from overnight to 12
months by reference to the relevant inter-bank rate, plus overdraft balances.
52 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements (b) Borrowing facilities
As at 31 March 2005 the Group had a £202.6m committed borrowing facility (2004: £135.1m) denominated in US Dollars, of which £113.6m 
was undrawn (2004: £56.4m). The undrawn amount will all expire in between two and five years.
(c) Fair values of ﬁnancial assets and ﬁnancial liabilities
It is considered that the fair value of all the Group’s financial assets and liabilities approximates to their carrying value because of the short term
nature of these amounts.
(d) Group hedging
The Group hedges a very high percentage of the foreign currency exposure arising from its trading activities over the course of the next 
12 months, through the use of forward foreign exchange contracts.
The Company provides foreign currency inter-company loans to a number of its subsidiaries. The foreign currency asset in the parent company 
is hedged in full using currency swaps over equal and opposite external foreign currency borrowings. This has the effect on a Group basis of
converting an inter-company loan into a partial hedge against net foreign currency assets in the relevant currency.
The following table shows the nominal Sterling amount of the forward foreign exchange contracts in place at 31 March 2005 valued at the forward
contracted rates and at the year end rates. The difference between the two is the unrecognised gain or loss. The hedges have no book value.
2005 2004
Hedging Hedging
Hedging inter- Hedging inter-
trading company trading company
flows debt Total flows debt Total
Forward foreign exchange contracts £m £m £m £m £m £m
Notional principal amounts valued at the contracted rates:
to sell Sterling and buy foreign currency (1 7 .9) – (1 7 .9) (40.8) – (40.8)
to buy Sterling and sell foreign currency 93.5 – 93.5 85.9 – 85.9
Total net amount: 75.6 – 75.6 45.1 – 45.1
Unrecognised gains and losses compared to year end rates:
gains 1.7 3.4
losses (0.7) (1.8)
Total net unrecognised gains 1.0 1.6
Fair value at 31 March 2005* 74.6 43.5
*Fair value is calculated as the amount of Sterling that would be received if the net amount of foreign currency sold forward was revalued at year end rates.
Throughout the year and as at the year end, the Group had one interest rate swap. This converted fixed interest to floating interest on 6.3m Euro
(£4.3m). The unrecognised gain arising on this interest rate swap as at 31 March 2005 was £0.2m (2004: nil).
Total net
gains
Gains Losses (losses)
Gains and losses on hedges £m £m £m
Unrecognised gains and losses at 1 April 2004 3.4 (1.8) 1.6
Gains and losses arising in previous years that were recognised in the year ended 31 March 2005 (3.3) 1.8 (1.5)
Gains and losses arising before 1 April 2004 that were not recognised in the year ended 31 March 2005 0.1 – 0.1
Gains and losses arising in the year ended 31 March 2005 that were not recognised in the year 1.6 (0.7) 0.9
Unrecognised gains and losses on hedges at 31 March 2005 1.7 (0.7) 1.0
£1.6m of the unrecognised gains and all of the unrecognised losses as at 31 March 2005 will be recognised within the next 12 months. 
(e) Currency exposures
At 31 March 2005 the Group had no forecast foreign currency exposures for the year ended 31 March 2006 which were not covered by forward
foreign exchange contracts (2004: nil).
Electrocomponents plc Annual Report and Accounts 2005 53
Financial Statements Notes to the consolidated accounts continued
For the year ended 31 March 2005
25 Provisions for liabilities and charges
Group Company 
deferred deferred 
taxation taxation 
£m £m 
At 1 April 2004 11.6 2.4
Profit and loss account 2.6 0.2
Translation differences 0.1 –
At 31 March 2005 14.3 2.6
Group Company
2005 2004 2005 2004
Deferred taxation £m £m £m £m 
Amounts provided:
Accelerated capital allowances 15.1 14.1 2.1 2.1
Tax losses (10.7) (8.7) – –
Goodwill 6.3 5.9 – –
Other short term timing differences 3.6 0.3 0.5 0.3
14.3 11.6 2.6 2.4
Deferred taxation
Amounts not provided:
Rolled over capital gains 0.5 0.5 – –
Tax losses (11.3) (13.0) – –
(10.8) (12.5) – –
The tax losses are recognised when recoverability is probable in the foreseeable future.
26 Lease commitments
The Group has entered into non-cancellable leases in respect of plant and machinery, the payments for which extend over a period of up to five
years. The total annual rental (including interest) for 2005 was £3.3m (2004: £3.1m). The lease agreements provide that the Group will pay all
insurance, maintenance and repairs. In addition, the Group leases certain properties on short and long term leases. The annual rental on these
leases was £6.5m (2004: £7 .2m as restated). The rents payable under these leases are subject to renegotiation at various intervals specified in
the leases. 
The Group pays all insurance, maintenance and repairs of these properties. The minimum annual rentals under the foregoing leases are as follows:
Group Company
Properties Plant and Plant and
2004 machinery Properties machinery
2005 (as restated) 2005 2004 2005 2004 2005 2004
£m £m £m £m £m £m £m £m 
Operating leases which expire:
within one year 0.8 1.2 1.4 0.6 – – – –
within two to five years 4.8 4.9 2.7 2.7 – – 0.2 0.1
after five years 1.0 1.0 – – – – – –
6.6 7 .1 4.1 3.3 – – 0.2 0.1
2004 Group commitments have been restated to remove £3.7m of intragroup lease commitments. The annual rental paid on property leases in
2004 has also been reduced by £3.7m to remove intragroup lease payments made.
27 Contingent liabilities
At 31 March 2005 the following contingent liabilities existed:
Company Guarantees in respect of bank facilities available to certain subsidiaries up to a maximum of £17 .3m (2004: £16.3m), of which £1.2m 
(2004: £0.1m) had been drawn down by the end of the year.
54 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements 28 Share capital
2005 2004 2005 2004
Number of shares Number of shares £m £m
Ordinary shares of 10p each:
Authorised 500,000,000 500,000,000 50.0 50.0
Called up and fully paid:
At 1 April 2004 435,246,655 435,206,655 43.5 43.5
New share capital subscribed 12,4 1 6 40,000 – –
At 31 March 2005 435,259,07 1 435,246,655 43.5 43.5
All of the new share capital subscribed in 2005 related to the exercise of share options (see note 29).
29 Share option schemes
Executive options Executive options SAYE US S423
1988 Scheme LTIOP scheme schemes scheme Total
Movement in outstanding options:
At 1 April 2004 2,854,525 12,481,912 3,678,552 39,117 19,054,106
Grants in the year – 4,959,435 700,223 6,233 5,665,891
Options exercised (7 ,200) – (1,693) (3,991) (12,884)
Options lapsed (45,800) (1,572,441) (892,918) (7 ,491) (2,518,650)
At 31 March 2005 2,801,525 15,868,906 3,484,164 33,868 22,188,463
Consideration in respect of exercises £0.0m – £0.0m £0.0m £0.0m
Options granted 1995 to 2001 2002 to 2004 1999 to 2004 2003 to 2004
Period of option 2005 to 2011 2005 to 2014 2005 to 2009 2005 to 2006
Price per share
Lowest 306.1p 312.0p 260.0p 278.0p
Highest 686.0p 37 1.0p 529.0p 306.0p
Weighted average 504.7p 340.9p 366.2p 283.2p
Executive Share Options are normally exercisable during the period between the third and tenth anniversaries of the date of grant. For options
issued prior to 1999 not more than 50% of the option may be exercised prior to the fifth anniversary of the date of grant and not more than 80%
prior to the seventh anniversary. For options issued in 1999 or later, exercise is subject to meeting a performance target. No more options will be
granted under this scheme. The Long Term Incentive Share Option Plan (LTIOP) was approved by shareholders at the 2002 AGM and the first grant
was made during that year. Options are subject to performance criteria and if they meet these will be exercisable between the third and tenth
anniversaries of the date of grant. Options issued under the SAYE schemes are normally exercisable during the period of six months following
either the third or fifth anniversary of the date of grant. For options issued under the US section 423 scheme, 20% are exercisable on or after the
first anniversary of the date of grant, with the balance exercisable after the second anniversary. Share options outstanding to the Directors of the
Company are detailed in the Remuneration Report.
Electrocomponents plc Annual Report and Accounts 2005 55
Financial Statements Notes to the consolidated accounts continued
For the year ended 31 March 2005
30 Reserves
Retained earnings
Share Profit
premium Own and loss
account shares account Total
£m £m £m £m
Group
At 1 April 2004 38.4 – 263.8 302.2
Prior year adjustment: implementation of UITF 38 – (1.7) 0.4 (1.3)
At 1 April 2004 as restated 38.4 (1.7) 264.2 300.9
Retained loss for the year – – (15.3) (15.3)
Translation differences – – 1.6 1.6
Premium on new share capital subscribed – – – –
At 31 March 2005 38.4 (1.7) 250.5 287 .2
Company
At 1 April 2004 38.4 – 174.4 2 12.8
Prior year adjustment: implementation of UITF 38 – (1.7) 0.4 (1.3)
At 1 April 2004 as restated 38.4 (1.7) 174.8 2 11.5
Retained profit for the year – – 16.1 16.1
Premium on new share capital subscribed – – – –
At 31 March 2005 38.4 (1.7) 190.9 227 .6
The cumulative amount of goodwill written off directly to consolidated profit and loss reserves in respect of subsidiaries that form part of the
Group’s continuing activities at 31 March 2005 is £42.8m (2004: £42.8m).
31 Reconciliations of movements in shareholders’ funds
Group Company
2004 2004
2005 (as restated) 2005 (as restated)
£m £m £m £m
Profit for the year 64.7 65.9 96.1 55.7
Dividend (80.0) (79.1) (80.0) (79.1)
Retained loss for the year (15.3) (13.2) 16.1 (23.4)
Translation differences 1.6 (29.2) – –
New share capital subscribed – 0.1 – 0.1
Net reduction in equity (13.7) (42.3) 16.1 (23.3)
Equity shareholders’ funds as originally stated 345.7 388.2 256.3 279.8
Prior year adjustment: implementation of UITF 38 (1.3) (1.5) (1.3) (1.5)
Equity shareholders’ funds at the beginning of the year 344.4 386.7 255.0 278.3
Equity shareholders’ funds at the end of the year 330.7 344.4 27 1.1 255.0
56 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements 32 Gross cash ﬂows – Group
2005 2004
£m £m
Returns on investments and servicing of finance
Interest received 3.5 1.6
Interest paid (4.8) (2.9)
Net cash outflow from returns on investments and servicing of finance (1.3) (1.3)
Capital expenditure and financial investment
Purchase of intangible fixed assets – (0.3)
Purchase of tangible fixed assets* (24.6) (23.2)
Sales of tangible fixed assets 0.8 4.2
Receipt of capital grants – 0.1
Net cash outflow for capital expenditure and financial investment (23.8) (19.2)
*Including capital accruals the purchase of fixed assets figure would be £25.1m (2004: £22.8m)
Management of liquid resources
Net decrease (increase) in bank deposits 11.8 (41.6)
Net cash outflow from management of liquid resources 11.8 (41.6)
Financing
Issue of ordinary share capital – 0.1
New bank loans 35.0 63.0
Repayment of bank loans (20.8) (2 1.0)
Net cash inflow from financing 14.2 42.1
33 Analysis of changes in net debt – Group
Other
At 1 April non-cash Translation At 31 March
2004 Cash flows changes differences 2005
£m £m £m £m £m
Cash at bank and in hand 7 .9 8.5 (5.2) 11.2
Overdrafts (0.7) (1.4) (0.1) (2.2)
7 .1
Current instalments of loans (24.2) (1.5) (0.6) 0.8 (25.5)
Loans repayable after more than one year (82.9) (12.7) 0.6 2.5 (92.5)
(14.2)
Current asset investments 65.4 (11.8) – 53.6
(34.5) (18.9) – (2.0) (55.4)
34 Principal exchange rates
2005 2004
Average Closing Average Closing
Euro 1.47 1.46 1.44 1.50
Japanese Yen 198 202 192 193
United States Dollar 1.85 1.89 1.70 1.85
Electrocomponents plc Annual Report and Accounts 2005 57
Financial Statements Five year record
2005 2004 2003 2002 2001
Year ended 31 March £m £m £m £m £m
Turnover
RS/Allied 773.9 759.3 743.7 759.6 823.9
Pact – –– – 31.2
Group 773.9 759.3 743.7 759.6 855.1
Operating profit
RS/Allied (including Group Process costs) 105.3 108.5 102.3 108.7 130.9
Pact – –– ––
Operating profit – before amortisation of goodwill 105.3 108.5 102.3 108.7 130.9
Amortisation of goodwill (9.4) (10.2) (11.3) (12.0) (11.6)
Exceptional loss on closure – – – – (6.9)
Net interest payable (0.9) (1.4) (1.2) (3.2) (6.8)
Profit before taxation 95.0 96.9 89.8 93.5 105.6
Profit before taxation and exceptional loss 95.0 96.9 89.8 93.5 112.5
Profit before taxation, exceptional loss and goodwill amortisation 104.4 107 .1 101.1 105.5 1 24.1
T axation (30.3) (31.0) (29.3) (30.6) (34.6)
Profit after taxation 64.7 65.9 60.5 62.9 7 1.0
Dividends (80.0) (79.1) (73.9) (69.2) (59.8)
Retained (loss) profit (15.3) (13.2) (13.4) (6.3) 11.2
Goodwill 129.3 141.5 1 76.6 208.5 2 19.7
Net debt (55.4) (34.5) (46.9) (53.0) (75.5)
Other net assets 256.8 237 .4 257 .0 255.5 270.7
Net assets employed 330.7 344.4 386.7 411.0 41 4.9
Number of shares in issue (million)
Weighted average (excludes own shares held) 434.9 434.9 434.8 434.1 433.1
Year end 435.3 435.2 435.2 435.0 434.2
Dividends per share 18.4p 18.2p 1 7 .0p 15.9p 13.8p
Earnings per share (before amortisation of goodwill and exceptional loss) 1 7 .0p 1 7 .5p 16.5p 1 7 .3p 20.2p
Proﬁt before taxation, exceptional loss and goodwill amortisation on net assets 31.6% 31.1% 26.1% 25.7% 29.9%
Average number of employees 4,993 4,973 5,028 4,974 5,041
Share price at 31 March 247 .5p 341.5p 257 .0p 478.0p 548.0p
Net asset value per share 76.0p 79.1p 88.9p 94.5p 95.6p
All four prior years have been restated in accordance with UITF 38.
58 Electrocomponents plc Annual Report and Accounts 2005
Financial Statements Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of
Electrocomponents plc will be held at the Company’s premises: The
International Management Centre, 5000 Oxford Business Park South,
Oxford OX4 2BH on Friday 15 July 2005 at 2:00 p.m.
The business of the meeting will be:
Ordinary business
Report and Accounts
1 To receive the accounts and the reports of the Directors and the
auditors for the year ended 31 March 2005.
Directors’ Remuneration Report
2 To approve the Directors’ Remuneration Report for the year ended
31 March 2005.
Declaration of dividend
3 To declare a final dividend on the ordinary shares.
Retiring Directors
4 To elect Mr K Abbott as a Director.
5 To re-elect Mr R A Lawson as a Director.
6 To re-elect Mr K Hamill as a Director.
7 To re-elect Dr F D Lennertz as a Director.
Auditors’ appointment and remuneration
8 To reappoint KPMG Audit Plc as auditors of the Company and 
to authorise the Directors to agree their remuneration.
Special business
To consider and, if thought fit, pass the following resolutions which will
be proposed as Special Resolutions:
Renewal of Directors’ authority to allot shares
9 That the Company is hereby generally and unconditionally
authorised to make market purchases (within the meaning of Section
163(3) of the Companies Act 1985) of ordinary shares of 10p each in
the Company (ordinary shares) provided that:
(a) the maximum number of ordinary shares hereby authorised to be
purchased is 43,525,000; 
(b) the minimum price which may be paid for ordinary shares is 10p
per ordinary share;
(c) the maximum price which may be paid for ordinary shares is an
amount equal to 105% of the average of the middle market quotations
for an ordinary share taken from the London Stock Exchange Daily
Official List for the five business days immediately preceding the date
of purchase;
(d) the authority hereby conferred shall expire at the conclusion of the
next Annual General Meeting of the Company, unless such authority is
renewed prior to such a time; and
(e) the Company may make a contract to purchase ordinary shares
under the authority hereby conferred prior to the expiry of such
authority which will or may be executed wholly or partly after the expiry
of such authority, and may make a purchase of ordinary shares in
pursuance of such contract.
Alteration of the Articles of Association – indemnity to directors and
ofﬁcers
10 That Article 165.1 of the Company’s Articles of Association be
deleted and replaced with the following:
“Subject to the provisions of CA 1985, but without prejudice to any
indemnity which he may otherwise be entitled, every Director, alternate
Director, Secretary or other officer of the Company (except the
Auditors) shall be entitled to be indemnified out of the assets of the
Company against any liability incurred by him for negligence, default,
breach of duty or breach of trust in relation to the affairs of the
Company, provided that this Article 165.1 shall be deemed not to
provide for, or entitle any such person to, indemnification to the extent
that it would cause this Article 165.1, or any element of it, to be treated
as void under CA 1985.”
By order of the Board
Carmelina Carfora
Company Secretary
25 May 2005 
Registered Office: International Management Centre, 
5000 Oxford Business Park South, Oxford, OX4 2BH
Registered Number: 647788
Electrocomponents plc Annual Report and Accounts 2005 59
Notice of Annual General Meeting
Notes:
(i) A member entitled to attend and vote at the Meeting is entitled to appoint one or more proxies to
attend and (on a poll) vote instead of him. A proxy need not be a member of the Company. Appointment
of a proxy will not preclude a member from attending or voting at the meeting if he/she subsequently
wishes to do so.
(ii) Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company 
has specified that only those shareholders registered in the Register of Members of the Company as 
at 6:00 p.m. on 13 July 2005 will be entitled to attend or vote at the Meeting in respect of the number
of shares registered in their name at that time. Changes to entries on the relevant Register of Members
after 6:00 p.m. on 13 July 2005 will be disregarded in determining the rights of any person to attend 
or vote at the Meeting.
(iii) A form of proxy is enclosed. To be effective a proxy form and the authority (if any) under which it
is signed or a notarially certified copy of such authority must be deposited at the offices of the
Company’s registrars, Lloyds TSB Registrars, The Causeway, Worthing, West Sussex, BN99 6ZL by 
not later than 2:00 p.m. on Wednesday 13 July 2005.
(iv) CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy
appointment service may do so for the Annual General Meeting to be held on 15 July 2005 at 2:00 p.m.
and any adjournment(s) thereof by using the procedures described in the CREST Manual. CREST
Personal Members or other CREST sponsored members, and those CREST members who have appointed
a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will
be able to take the appropriate action on their behalf.
In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate
CREST message (a “CREST Proxy Instruction”) must be properly authenticated in accordance with
CRESTCo’s specifications and must contain the information required for such instructions, as described
in the CREST Manual. The message, regardless of whether it constitutes the appointment of a proxy 
or an amendment to the instruction given to a previously appointed proxy must, in order to be valid, be
transmitted so as to be received by the issuer’s agent (ID 7RA01) by the latest time(s) for receipt of
proxy appointments specified in the notice of meeting. For this purpose, the time of receipt will be taken
to be the time (as determined by the timestamp applied to the message by the CREST Applications
Host) from which the issuer’s agent is able to retrieve the message by enquiry to CREST in the manner
prescribed by CREST. After this time any change of instructions to proxies appointed through CREST
should be communicated to the appointee through other means.
CREST members and, where applicable, their CREST sponsors or voting service providers should note
that CRESTCo does not make available special procedures in CREST for any particular messages. Normal
system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions.
It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST
personal member or sponsored member or has appointed a voting service provider(s), to procure that
his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure
that a message is transmitted by means of the CREST system by any particular time. In this connection,
CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in
particular, to those sections of the CREST Manual concerning practical limitations of the CREST system
and timings.
The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation
35(5)(a) of the Uncertificated Securities Regulations 2001. 
(v) The Register of Directors’ Interests and copies of all Contracts of Service of the Directors together
with terms and conditions of appointment of the Non-Executive Directors are available for inspection
during business hours at the registered office of the Company and will be available for inspection at the
place of the Meeting from half an hour before the time of the Meeting until the conclusion of the Meeting.
(vi) Biographical details of the Directors who are proposed for re-election or election at the 
Annual General Meeting are set out on pages 20 and 21.  Principal locations
United Kingdom
Electrocomponents plc
International Management Centre 
5000 Oxford Business Park South 
Oxford OX4 2BH 
United Kingdom
Tel: (44) (0) 1865 204000
Fax: (44) (0) 1865 207400
www.electrocomponents.com
RS Components Ltd
PO Box 99, Corby
Northants NN17 9RS
United Kingdom
Tel: (44) (0) 1536 201234
Fax: (44) (0) 1536 405678
www.rswww.com
Rest of Europe
RS Components GesmbH
Postfach 79
Albrechtser Strasse 11
A-3950 Gmuend, Austria
Tel: (43) 2852 53765
Fax: (43) 2852 53223
www.rs-components.at
RS Components
Paepsem Business Park
Bd Paepsemlaan 22
1070 Anderlecht, Belgium
Tel: (32) 2 528 0788
Fax: (32) 2 528 0789
www.rsonline.be
RS Components A/S
Vibevej 11
DK-2400 Copenhagen NV
Denmark
Tel: (45) 38 16 9900
Fax: (45) 38 10 3319
www.rsonline.dk
Radiospares SAS
Rue Norman King
F-60000 Beauvais Cedex
France
Tel: (33) 3 44 10 1500
Fax: (33) 3 44 10 1507
www.radiospares.fr
RS Components GmbH
Hessenring 13b
64546 Moerfelden-Walldorf
Germany
Tel: (49) 6 105 401234
Fax: (49) 6 105 401100
www.rsonline.de
Radionics Ltd
Glenview Industrial Estate
Herberton Road, Rialto
Dublin 12
Republic of Ireland
Tel: (353) 1 4153123
Fax: (353) 1 4153111
www.radionics.ie
RS Components SpA
Via De Vizzi, 93/95
1-20092 Cinisello Balsamo
Milano
Italy
Tel: (39) 02 66 0581
Fax: (39) 02 66 058051
www.rswww.it
RS Components BV
Bingerweg 19
2031 AZ Haarlem
The Netherlands
Tel: (31) 23 516 6500
Fax: (31) 23 516 6501
www.rsonline.nl
RS Components AS
Hvamsvingen 24
2013 Skjetten
Norway
Tel: (47) 6483 4000
Fax: (47) 6483 4010
www.rsonline.no
Amidata SA
Avda. De Europa 19, Edif 3
28224 Pozuelo de Alarcon Madrid
Spain
Tel: (34) 91 512 9600
Fax: (34) 91 475 6747
www.amidata.es
www.rsportugal.com
RS Components AB
Vällingbyplan 13
162 65 Vällingby
Sweden
Tel: (46) 8 445 8900
Fax: (46) 8 687 1152
www.rsonline.se
North America
Allied Electronics Inc.
7410 Pebble Drive
Fort Worth, Texas, TX 76 118
United States of America
Tel: (1) 817 595 3500
Fax: (1) 817 595 6444
www.alliedelec.com
Allied Electronics (Canada) Inc.
1155 Lola St.
Unit 6, Ottawa
Ontario, K1K-4C1
Canada
Tel: (1) 6 13 228 1964
Fax: (1) 6 13 228 8006
www.alliedelec.com
Japan
RS Components KK
West Tower 12F
Yokohama Business Park
134 Godocho, Hodogaya
Yokohama, Kanagawa 240-0005
Japan
Tel: (81) 45 335 8550
Fax: (81) 45 335 8554
rswww.co.jp
Rest of World
RS Components Pty Ltd
PO Box 6864
Wetherill Park
New South Wales 1851
Australia
Tel: (6 1) 2 9681 8552
Fax: (6 1) 2 9681 8655
www.rsaustralia.com
RS Componentes 
Electrónicos Limitada
Avda. Américo Vespucio 2290
Conchalí, Santiago
Chile
Tel: (56) 2 668 1400
Fax: (56) 2 668 1410
www.rschile.cl
RS Components Sdn Bhd
Lot 12, Jalan Pensyarah U1/28
Seksyen U1
Hicom Glenmarie Industrial Park
40150 Shah Alam
Selangor Darul Ehsan
Malaysia
Tel: (603) 5032 1133
Fax: (603) 5032 2 133
www.rswww.com.my
RS Components Ltd
31F Wyler Centre Phase II, U1
200 Tai Lin Pai Road
Kwai Chung, New Territories
Hong Kong
Tel: (852) 26 10 2990
Fax: (852) 26 10 2991
www.rshongkong.com
RS Components & Controls
(India) Ltd
44 Okhla Industrial Estate
New Delhi 110 020, India
Tel: (91) 11 63 26 991/2
Fax: (91) 11 63 26 993
www.rs-components.com/india
RS Components Limited
Units 30 & 31 Warehouse World
76 1 Great South Road
Penrose, Auckland
New Zealand
Tel: (64) 9 526 1600
Fax: (64) 9 579 1700
www.rsnewzealand.com
RS Components Ltd
Unit 2 1
B1 Multinational Bancorporation
Centre 6805 Ayala Avenue, Makati
City, Philippines
Tel: (63) 2 888 4030
Fax: (63) 2 888 4034
www.rswww.com.ph
RS Components Pte Ltd
31 Tech Park Crescent 
Singapore 638040
Tel: (65) 6865 3400
Fax: (65) 6865 3800
www.rscomp.com.sg
RS Components (SA)
1&2 Indianapolis Street
Kyalami Business Park
Kyalami, Midrand
South Africa
Tel: (27) 11 691 9300
Fax: (27) 11 466 1577
www.rssouthafrica.com
RS Components Limited
10F No 3, Section 1
Ming Sheng Road
Panchiao, Taipei Hsien
Taiwan, ROC
Tel: (886) 2 2957 9902
Fax: (886) 2 2959 9844
www.rstaiwan.com
RS Components Ltd, Mainland
China Liaison Ofﬁces
Beijing: (86) (0) 10 8499 0555
Guangzhou: (86) (0) 20 8732 1859
Shanghai: (86) (0) 2 1 5385 4238
Shenzhen: (86) (0) 208 732 1859
Wuhan: (86) (0) 27 8732 2601
Xian: (86) (0) 29 82 1 4848
60 Electrocomponents plc Annual Report and Accounts 2005
Principal locations Produced by Black Sun Plc
Printed by Royle Corporate Print
Photography by Dean Belcher
This Annual Report is printed on paper 
produced from totally chlorine free pulp, 
and from fully sustainable forests.
Registered ofﬁce, advisers and ﬁnancial calendar
Registered ofﬁce
Electrocomponents plc
International Management Centre
5000 Oxford Business Park South
Oxford OX4 2BH
United Kingdom
Tel: (44) (0) 1865 204000
Fax: (44) (0) 1865 207400
Website: www.electrocomponents.com
Financial calendar
Announcement of results
The results of the Group are normally published at the following times.
Interim report for the six months to 30 September in early November.
Preliminary announcement for the year to 31 March in late May.
Report and Accounts for the year to 31 March in June.
Dividend payments
Current policy is to make dividend payments at the following times:
Interim dividend in January.
Final dividend in July.
2005 ﬁnal dividend
Ex-dividend date 22 June 
Record date 24 June
Annual General Meeting 15 July
Dividend paid 22 July
Advisers
Auditors
KPMG Audit Plc
PO Box 695, 8 Salisbury Square
London EC4Y 8BB
Merchant Bankers
Citigroup
Citigroup Centre
33 Canada Square
Canary Wharf
London E14 5LB
Registrars and transfer ofﬁce
Lloyds TSB Registrars
The Causeway
Worthing 
West Sussex BN99 6DA
Solicitors
Norton Rose
Kempson House
Camomile Street
London EC3A 7AN
Stockbrokers
UBS 
1 Finsbury Avenue
London EC2M 2PP
Shareholder Services
Shareview
A website, www.shareview.co.uk, has been developed by Lloyds TSB
Registrars, the Company’s registrar, enabling shareholders to access
shareholdings online. The website provides information useful to the
management of investments together with an extensive schedule of
frequently asked questions.
In order to view shareholdings the shareholder reference number is
required which can be found at the top of share certificates or on the 
last dividend tax voucher.
Electrocomponents plc Annual Report and Accounts 2005 61
Registered ofﬁce, advisers and ﬁnancial calendar International Management Centre
5000 Oxford Business Park South
Oxford OX4 2BH
United Kingdom
t: (44) (0) 1865 204000
f: (44) (0) 1865 207400
Electrocomponents plc
For more information please visit our website
www.electrocomponents.com
Electrocomponents plc Annual Report and Accounts 2005
Electrocomponents plc Annual Report and Accounts 2005
“FOCUSED ON STRENGTHS”
Ian Mason
Chief Executive