Annual Report and Accounts 2007 >
Electrocomponents plc Annual Report and Accounts 2007
Electrocomponents plc
Delivering our strategy
International Management Centre
8050 Oxford Business Park North
Oxford OX4 2HW
United Kingdom
t: (44) (0) 1865 204000
f: (44) (0) 1865 207 400
Electrocomponents plc Electrocomponents plc
Electrocomponents plc is a dynamic and
international business that distributes 
a wide range of products to development 
and maintenance engineers in all types 
of businesses around the world. 
In this, the second year of our strategic 
development plan, we have made 
good progress as shown by our strong 
ﬁnancial performance.
Contents
1 Financial Highlights
2 Chairman’s Statement
3 Our Business Today
4 Our Key Markets
6 Our Strategy
7 Chief Executive’s Review
8 Business Review
14 Board of Directors
15 Report of the Directors
19 Remuneration Report
23 Report of the Auditors
24 Group Income Statement
25 Group Balance Sheet
26 Group Cash Flow Statement
27 Group Signiﬁcant Accounting Policies
29 Notes to the Group Accounts
46 Company Balance Sheet
47 Company Signiﬁcant 
Accounting Policies
48 Notes to the Company Accounts
53 Five Year Record
54 Notice of Annual General Meeting
56 Principal Locations
56 Registered Ofﬁce, Advisers 
and Financial Calendar
@
To view the Annual Report online, visit:
www.electrocomponents.com
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is Elemental Chlorine Free (ECF). Electrocomponents plc Annual Report and Accounts 2007 1
Financial Highlights >
How we have performed...
Revenue up 9.0%
£877 .5m
2006: £828.5m
Headline operating proﬁt up 18.5%
£90.3m
2006: £76.2m
Headline proﬁt before tax up 15.9%
£84. 4m
2006: £72.8m
Headline earnings per share up 1 4.3%
12 . 8p
2006: 11.2p
Dividend per share
18 .4p
2006: 18.4p
Headline return on sales
9.6%
2006: 8.8%
DEFINITIONS OF TERMS:
In order to reﬂect underlying business performance, comparisons 
of revenue between periods have been adjusted for exchange rates
and the number of trading days. Changes in proﬁt, cash ﬂow, debt 
and share related measures such as earnings per share are at
reported exchange rates.
Enterprise Business System (EBS): In order to make clear the costs 
of the EBS project and the underlying performance of the business,
EBS costs have been disclosed separately. Therefore, unless explicitly
stated, measures based on operating costs, contribution and process
costs exclude EBS.
Headline proﬁt: A proﬁt of £0.8m (2006: charge £7 .7m) was incurred
in the year for items excluded from headline proﬁt. Details of these
items are given in the Income Statement on page 24 of this report.
Key performance measures such as return on sales, EBITDA and 
ROCE use headline proﬁt ﬁgures. Introduction
This has been a year of good progress. The
implementation of the strategy continues with
good signs of success in both our electronic and
electromechanical (EEM) and maintenance,
repair and operations (MRO) businesses and
resultant strong sales growth. The Enterprise
Business System (EBS) was implemented
successfully during the ﬁnancial year in Austria,
Italy and Germany and since the year end in
Benelux, Ireland, Scandinavia and Spain. It now
supports all the UK and European businesses.
The work to create a lower cost infrastructure
has progressed well, including the move to a
new head ofﬁce, and has achieved £7 .6m of
annualised cost savings.
Overall, headline proﬁt increased by 16% to
£84m supported by sustained sales growth
across the Group, gross margin stabilisation 
and tight control of costs.
Strategic Development
The strategy development is now delivering
tangible beneﬁts with the launch of extended
ranges and leading edge products, a more
ﬂexible service offer and more competitive
pricing to meet customer requirements. This 
has been supported by more customer-speciﬁc
selling and marketing activities.
Dividend
The Board announced in 2005 that it would
maintain the dividend for the following three
years, assuming no substantial deterioration 
in economic conditions. Accordingly, the
dividend will be maintained at 18.4p per share
for the full year, being year two of this three
year period. 
Our people
The business has had another very busy year.
Revenue and proﬁt growth has been achieved 
at the same time as the further roll out of EBS.
This has been made possible as a result of the
commitment and skill of all our people. On
behalf of the Board, I thank everyone for 
their hard work.
As previously announced, Bob Lawson retired
as Chairman in October 2006. Bob made an
enormous contribution to Electrocomponents
over his 26 years with the Group. In many ways
Bob has been the architect of the Group as it
now stands. In particular, he rolled out the RS
concept internationally and this now comprises
more than £500m (nearly 60%) of the Group’s
total revenue. I have appreciated enormously
Bob’s support in his handover to me and we all
wish him well in the future.
Nick Temple will be retiring at the Annual General
Meeting after 10 years on the Board. We thank
Nick for his valuable contribution, particularly in
the ﬁeld of technology and e-Commerce, which
has become a major channel for our business.
We wish him well for the future.
Tim Barker, who has been a Non-Executive
Director of the Company for seven years, will
replace Nick Temple as Senior Independent
Director at the Annual General Meeting.
Rupert Soames has been appointed to the Board
as a Non-Executive Director. Rupert is currently
CEO of Aggreko plc, the global leader in the rental
of power, temperature control and oil-free
compressed air systems. He has signiﬁcant
relevant international, high service and
information systems experience and we
welcome him to the Group.
Current Trading
Since the year end the Group has successfully
completed the EBS roll out across Europe.
Group revenue has grown at around 6% with 
an improving performance during May. The
International business has grown revenue at
around 10% and the UK business has grown 
at around 2%.
Helmut Mamsch
Chairman
2 Electrocomponents plc Annual Report and Accounts 2007
Chairman’s Statement >
Helmut Mamsch
Chairman
We are the world’s largest industrial
electronics catalogue distributor. Electrocomponents plc Annual Report and Accounts 2007 3
Our Business Today >
We are focused on...
EEM >
Electronic and Electromechanical
Customers are responding positively to our improved EEM offer, which is broader, deeper
and includes more innovative product ranges. 
MRO >
Maintenance, Repair and Operations
Our primary focus is to simplify the offer to meet customer needs more effectively. 
e-Commerce >
Customers
> Maintenance engineers
Customer needs
> Broad range of products and technologies
> Reliable and fast delivery
RS is secondary supplier
e-Commerce is a key enabler of the
strategy. It allows the Group to make 
a very wide range of products available
globally at lower cost. It also allows 
rapid new product introductions and 
price changes. 
28 %
Revenue share
23 %
Revenue growth 
Customers
> Electronics design and production engineers
> Field service and maintenance engineers
Customer needs
> Deep and innovative product ranges
> Reliable delivery
RS is primary supplier
New technology launches
> Wireless
> Displays
> Solid State Lighting
> Power Supplies
> Embedded Computing
> Supplier Speciﬁc Technologies 4 Electrocomponents plc Annual Report and Accounts 2007
Our Key Markets >
Where we operate...
UK >
RS helps e2v Technologies 
to innovate
e2v Technologies is a leading designer,
developer and manufacturer of specialised
components and subsystems for Electronic
tubes and Sensors and Semiconductors. 
These products enable some of the world’s
leading OEMs to deliver innovative systems 
for medical, science, aerospace, defence,
industrial and commercial applications. 
Toyota Technical Development Corporation 
(TTDC is a member company of the Toyota
Group) develops and supports Toyota’s
technologies for safety and lowering
environmental impact. The company
develops Hybrid Engines, Electronic 
Control systems and Fuel Cells for 
mass production.
TTDC’s primary requirements are for electrical
and electronic components including
Resistors, DC/DC converters, PCB connectors
and Capacitors. Toyota relies on RS as a key
supplier because of its wide range of branded
EEM components and guaranteed delivery
which support TTDC’s technology
development and business growth. 
RS delivers total quality assurance
to Bayer in China
Bayer, a research-based global enterprise
with core competencies in the ﬁelds of
health care, nutrition and high-tech
materials, hosts one of its largest supply
centres for the Asia Paciﬁc region in China. 
For such a large chemical enterprise as 
Bayer, a small delay in the delivery of 
goods can result in signiﬁcant delays 
in the development of products. RS’s 
bonded warehouse in Waigaoqiao, Pudong,
guarantees timely supply of products. 
RS carries products that meet Bayer’s high-
end requirements and offers internationally
recognised brands delivered with total quality
assurance. The superior RS service standard
ensures Bayer’s business runs smoothly. 
RS helps keep the energy 
market going 
The ‘Big Four’ Group of the largest Utility
companies in Germany (RWE, E.on, EnBW
and Vattenfall) power thousands of homes
and businesses every hour of every day. 
The Group’s initial requirements from 
RS were for hand tools and electronic
installations and this has expanded to
include many more products. Product
availability and assured delivery are at the
forefront of their requirements and RS’s
ﬂexible pricing on volume orders means the
same RS service, but at even better prices.
With RS Components, they could rationalise
their numerous suppliers to a select number
of preferred suppliers. The Group saves 
time and money and with superior customer
service, this is what makes RS a supplier 
of choice.
Asia Paciﬁc >
17%
Revenue growth
Continental Europe >
Japan – RS Components helps drive Toyota Technical Development 
> 9 operating companies in 4 sub-regions
across 10 countries
> 6 warehouses
> Content in 3 local languages
> 60,000 locally stocked and up to 100,000
extended range products on offer
>e-Commerce 29% of total sales
> 2 warehouses
> 15 trade counters and 6 call
and collects
> 150,000 products stocked
locally and 85,000 extended
range products on offer
>e-Commerce 32% of total sales Electrocomponents plc Annual Report and Accounts 2007 5
e2v depend on RS for the supply of a 
wide range of products from electronics
components such as connectors to 
health and safety equipment. 
With cost control being a crucial factor, 
e2v required a cost effective purchasing
system which gave them total visibility of 
their company’s spend. RS immediately
fulﬁlled the criteria with Purchasing Manager™,
RS’s online purchasing solution. 
Purchasing Manager™ enables companies to
set spend controls, workﬂows and gain
transparency of expenditure with RS. The
system notiﬁes users immediately if a product
is not available and searches for alternatives,
which prevents costly delays and frustrating
waits for essential products. 
Signiﬁcantly RS has helped e2v to save
considerable time, empower employees with
spend controls and reduce administration time
and control costs with Purchasing Manager™.
10%
Revenue growth
Allied Electronics helps 
Schilling Robotics deliver
technology excellence 
Schilling Robotics designs and delivers the
world’s highest-performing building blocks
for subsea equipment operating in the
world’s harshest environments. The
company’s engineering specialties focus 
on high-speed digital electronics, robotics
and precision machining.
When Schilling’s previous supplier was
unable to meet scheduled demand for a
required product, Allied stepped in. Allied’s
local representative negotiated with the
manufacturer to switch the supply of the
product whilst maintaining the price. The time
Allied was able to save Schilling was invaluable. 
Latest technologies, new product
introductions and fast access to the
products and services are just some 
of the reasons why Schilling Robotics 
use Allied time and time again.
2%
Revenue growth
North America >
Group Share of Turnover by Region >
9%
Asia Paciﬁc
32 %
Continental Europe
18 %
North America
41%
UK
22 %
Revenue growth
>
> 10 operating companies serving 
13 countries
> 7 warehouses
> 12 locally priced catalogues and websites
> Up to 160,000 products available locally 
and 230,000 extended range products
> e-Commerce 32% of total sales
> 55 local branches
> Single warehouse co-located with head 
ofﬁce in Texas
> Annual catalogue with strong supplier input
> 1 35,000 products available through the
catalogue and 300,000 online
> e-Commerce 10% of total sales 6 Electrocomponents plc Annual Report and Accounts 2007
Our Strategy >
How we are progressing...
What we said > What we have
achieved >
What we are
doing next >
Further develop the EEM offer
> Further product range additions
> More new technology launches 
> Widening the availability 
of extended ranges
> Deepen the relationship with 
selected suppliers
EBS implementation is 
now complete
> Final element of the European 
roll out was completed in May 2007
> From May 2007 , all UK and European
businesses operate on the EBS platform
> Beginning to realise the beneﬁts of 
an integrated system
Further actions planned 
to achieve the annualised 
£10m target
> Complete by end 2008
1
2
3
Focus separately 
on two distinct
customer groups
> EEM – Electronic and
Electromechanical
> MRO – Maintenance, 
Repair and Operations 
Implement the
Enterprise Business
System (EBS)
>Asia
> UK and Europe
Create a lower cost
infrastructure
> £10m infrastructure
reduction
100,000
Extended range products have been 
made available over the web from our
North American and Japanese offers
Go-live
EBS successfully launched in Austria,
Germany, Italy and China
£7 .6m
Total annualised cost reduction Overview
In May 2005, we committed to a plan to improve
the ﬁnancial performance of the Group
signiﬁcantly. The plan had three main elements:
> Focus separately on two distinct customer
groups: Electronic and Electromechanical
(EEM) and Maintenance, Repair and
Operations (MRO)
> Implement the Enterprise Business 
System (EBS)
> Create a lower cost infrastructure 
This year has seen a step change in the 
delivery of each element of the plan which 
has consequently resulted in strong sales and
proﬁt growth. The two infrastructure elements 
of our plan are largely done. The roll out of EBS
in Europe is now complete and three quarters of
the targeted cost savings have been achieved,
with the remainder well in hand. Our focus is on
our customers and continuing to build on the
enthusiastic response we have had to our
improved EEM and MRO offers.
Electronic and Electromechanical (EEM)
Our EEM customers are primarily involved in
electronics design and pre and low volume
electronics production. Strong electronics
market growth, technology proliferation and
R&D investment make this an attractive and
growing segment to serve, and catalogue-based
distribution is the customers’ preferred channel.
Their primary need is access to as broad, deep
and innovative a product range as possible.
During the year, we have updated our EEM
product range: 100,000 extended range
products have been made available over the
web from our North American and Japanese
offers; complete ranges of leading edge
technologies have been launched (wireless and
displays, solid state lighting, power supplies,
embedded computing) and the current product
ranges have been refreshed and increased in
depth. We have improved our EEM offer
promotion to make it more targeted and
relevant to design engineers and done much
more joint supplier promotion to leverage our
relationships with strong brands. All of these
initiatives are generating signiﬁcant incremental
revenue and re-establishing the Group as the
leading EEM distributor. As well as continuing 
to develop our product range, new tools and
ﬂexible packaging options are being developed
to better serve these customers’ needs.
Maintenance, Repair & Operations (MRO)
Within MRO there is an important customer
segment involved in factory automation that
primarily uses process control and automation
(PCA) products. Both the MRO and PCA
segments have been buoyant due to the
improved outlook for manufacturing and
increased use of automation in the workplace.
Within Europe, an extended range of products
from four leading PCA suppliers has been 
offered over the web and sales and marketing
resources, including technology-speciﬁc
discounts, have been more targeted at factory
automation customers. As a result, PCA is
growing strongly across Europe. The proﬁtability
of the MRO product ranges has been improved
through range rationalisation, increasing use of
own brand and better buying, with contribution
growing faster than sales. These successful
initiatives will be scaled up in the coming year 
to further improve proﬁtability. 
Customer Research
Customer research in the UK (soon to be
completed in Europe) has demonstrated
considerable improvements in customer
perceptions across all service measures and
value for money relative to competition. The
actions we have taken on price and customer
discounts have been recognised by the 
customer. Our businesses have clearly become
more competitive in meeting customers’ needs
and will continue to do so. 
Summary
The Group’s strategy is clear and its
implementation is leading to strong sales 
and proﬁt growth. The necessary infrastructure
projects are largely behind us, and much
preparatory work has been done to enable
delivery of the strategy. We will focus on further
improving our customer offers to drive growth
as well as maintaining our control of costs.
While there is much hard work still to do, clear
plans are in place and the forthcoming year 
will be another of further progress. 
Ian Mason
Group Chief Executive
Electrocomponents plc Annual Report and Accounts 2007 7
Chief Executive’s Review >
Ian Mason
Group Chief Executive NATURE OF THE BUSINESS
Electrocomponents plc is a high service
distributor of electronic, electromechanical and
wider industrial products. The Group operates in
27 countries and sells to most of the remaining
countries of the world via third party distributors.
The Group offers a wide range of products to
customers who are typically research and
development (‘R&D’) or maintenance engineers
in business. A large number of high quality
goods are stocked, which are dispatched the
same day that the order is received. The average
customer order value is generally less than
£100 although the range of order values is wide.
The number of customer contacts is very large
and their product demands diverse. This means
that the Group manages tens of thousands of
orders each working day.
PROGRESS ON 3 YEAR PLAN
As explained in the Chief Executive’s Review 
we have continued to make good progress
implementing the new strategy announced 
in May 2005.
STRENGTHS AND RESOURCES
Brands
The Group has a number of major brands. The
most signiﬁcant of these is ‘RS’ which is used all
over the world, except in North America, France
and Ireland where the ‘Allied’, ‘Radiospares’ and
‘Radionics’ brands are used respectively.
Customer relationships
We supply nearly 1.5m customers from all
industrial sectors. We have relationships with
both the end users who utilise our products 
and also with the companies for whom they
work. Our customers are typically R&D and
maintenance engineers.
Supplier relationships
The relationships with our suppliers are an
important element in allowing us to maintain
high standards of product availability for our
customers. We purchase 350,000 products
from 2,300 major suppliers throughout the
world with increasing focus on global
purchasing agreements. Our offer to R&D
engineers is valuable to many of our suppliers,
who would otherwise ﬁnd the small order and
immediate dispatch requirements of such
customers difﬁcult and costly to satisfy. 
Employees
The skills and support from our employees are
major assets to the Group. During the year we
employed around 5,500 employees worldwide.
The geographic spread includes: 1,900 in the
UK, 1,300 in Continental Europe, 600 in North
America, 800 in Asia Paciﬁc and 900 in the
Groupwide processes. Within the Operating
companies an increasing proportion of
employees are focused on our sales and
marketing activities.
OPERATING PERFORMANCE AND KEY
PERFORMANCE INDICATORS
Operating performance
2007 2006
Revenue £877 .5m £828.5m
Gross margin 50.5% 51.5%
Contribution £192.2m £183.2m
Group Process costs (£82.9m) (£81.9m)
EBS costs (£19.0m) (£25.1m)
Headline operating profit £90.3m £76.2m
Interest (net) (£5.9m) (£3.4m)
Headline profit before tax £84.4m £72.8m
Headline earnings per share 12.8p 11.2p
Dividend per share 18.4p 18.4p
Key performance indicators
2007 2006
Group revenue growth 9.0% 5.0%
International 14.5% 11.8%
UK 1.9% (3.0%)
e-Commerce revenue share 28% 25%
Headline Group return on sales 9.6% 8.8%
Headline EBITDA
(1)
£118.2m £100.3m
Free cash flow £45.3m £26.9m
Headline ROCE
(2)
20.5% 16.7%
Stock turn (per year) 2.7x 2.5x
Revenue per head (£’000)
(3)
16 1 155
Number of customers (millions) 1.5 1.4
(1) Headline earnings before interest, tax, depreciation and amortisation
(2) Return on capital employed is deﬁned as headline operating proﬁt
expressed as a percentage of net assets plus net debt
(3) Revenue on a like for like basis (2006 and 2007) adjusting for trading
days and foreign exchange
Headline proﬁt before tax has increased by
£11.6m (1 5.9%). The main areas of improvement
were an increase in the contribution of our
International business of £10.0m and a
reduction in EBS costs by £6.1m. Against 
this, the UK contribution declined by £1.0m 
and Process costs and interest costs increased
by £1.0m and £2.5m respectively.
Proﬁt before tax was adversely affected by the
strengthening of Sterling by ca. £0.9m year on
year. Adjusting for this effect headline proﬁt
before tax would have grown by 1 7 .2%.
The contribution of our International business
has again increased due to a combination 
of high revenue growth and improved cost
leverage. The UK contribution fell slightly 
despite the revenue growth as operating costs
increased, principally as a result of additional
operating costs to support the new EBS markets.
EBS costs were reduced following higher costs
associated with the UK implementation in the
last ﬁnancial year. Interest costs increased 
due to the higher level of debt and rising
interest rates. 
e-Commerce is a key enabler of the strategy. It
allows the Group to make a very wide range of
products available globally at a lower cost. It
also allows rapid new product introductions and
price changes. In addition, supplier relationships
have been leveraged through brand shops on
the web. e-Commerce revenue growth remains
strong at 23% and it now represents 28% of
8 Electrocomponents plc Annual Report and Accounts 2007
Business Review >
Simon Boddie
Group Finance Director Net debt was £1 36.2m at 31 March 2007 ,
£15.4m higher than last year with interest 
cover remaining high. The pension deﬁcit 
(net of deferred tax) fell by £0.6m to £29.1m. 
The reorganisation income of £0.8m comprised
costs, relating to the creation of a lower cost
infrastructure (£1.1m), and a one-off proﬁt 
on sale of the head ofﬁce (£1.9m).
Free cash ﬂow at £45.3m was up £18.4m on
last year principally due to higher proﬁts, and
the sale of the head ofﬁce. These improvements
were offset, in part, by increased gross capital
expenditure associated with the build of the new
ofﬁce and warehouse facilities in our North
American business.
INTERNATIONAL
2007 2006
Revenue £52 1.3m £474.9m
Revenue growth 14.5% 11.8%
Gross margin 48.7% 50.3%
Operating costs % of revenue (30.2%) (32.1%)
Contribution £96.3m £86.3m
% of revenue 18.5% 18.2%
The International business comprises
Continental Europe (55% of revenue of the
International business), North America (30%)
and Asia Paciﬁc (15%). During the year the
International business continued to grow and
now accounts for 59% of Group revenue and 
50% of Group contribution. After adjusting for the
£1.9m adverse impact of the strengthening of
Sterling, contribution from the International
business increased by £11.9m year on year.
Revenue growth increased during the year with
all regions growing faster than in 2006. 
Operating costs reduced as a percentage of
revenue by 1.9% points demonstrating the
ongoing operational gearing beneﬁts of higher
sales in the region.
Continental Europe
2007 2006
Revenue £287 .5m £267 .9m
Revenue growth 10.1% 8.3%
Contribution £64.5m £59.9m
% of revenue 22.4% 22.4%
During the year, the European region maintained
strong revenue growth of 10.1%, which was
consistent throughout both halves of the year. 
This performance was achieved against 
the backdrop of the preparation for and
implementation of EBS in seven out of the 
eight European businesses: Austria, Benelux,
Germany, Ireland, Italy, Scandinavia and Spain.
Our French business implemented an upgrade
to EBS in September 2006.
The European business continues to implement
the strategy. This has included refocusing 
local sales forces towards the EEM offer with
dedicated EEM sales forces being established 
in France and Germany. The EEM offer has
improved with the North American extended
range being made available to the majority of
the European markets. Our quotations and 
larger order business, which delivers good
margins, has continued to grow in response 
to the more ﬂexible approach we have taken
with our customers.
The level of best practice sharing and focus on
key supplier initiatives across businesses has
been increased. 
North America
2007 2006
Revenue £157 .2m £137 .5m
Revenue growth 2 1.8% 18.0%
Contribution £23.4m £19.2m
% of revenue 14.9% 14.0%
Allied, our North American business, increased
its revenue growth during the year. This is the
third consecutive year of growth at around 20%.
Contribution grew to 1 4.9% of revenue, due to
strong revenue growth, limited cost increases
and a stable gross margin.
The business has continued to pursue its 
proven sales growth strategy. This has involved
the strengthening of the ﬁeld sales team
Electrocomponents plc Annual Report and Accounts 2007 9
Group revenue, including 57% in Japan and 32%
across Europe and the UK. In several operating
companies we now take more orders through
our e-Commerce channels than by telephone.
Gross proﬁt increased by £1 7 .1m in 2007 with
growth in all regions. The Group gross margin
reduced by 1% point year on year with different
patterns by region.
The UK gross margin was stable throughout 
the year. The selling price realignment,
undertaken over the last few years to improve
competitiveness, was largely complete and 
the gross margin has beneﬁted from reduced
product costs, through better buying and
rationalisation of the MRO range, as well as
greater use of the higher margin RS own 
brand products.
The International gross margin declined year 
on year by 1.6% points but with the rate of
decline slowing during the year with a decline 
of 0.3% points ﬁrst half to second half. The
strong growth of our lower, but stable gross
margin business in North America, was
responsible for a proportion of the full year
decline. The underlying gross margin decline
was in the European and Asia Paciﬁc regions. 
In Europe, selling price realignments and the
growth of proﬁtable larger order business have
impacted gross margins while in Asia Paciﬁc
foreign exchange movements have been
signiﬁcant. In the future the European region,
the largest region in the International business,
will beneﬁt from the completion of the selling
price realignment and the full year impact of
product cost savings coming through.
Both Operating and Process costs have been
reduced as a percentage of revenue due to tight
management control and the beneﬁcial scale
effect of higher revenue. Actions in the year
have realised a further £3.2m of annualised
cost reductions comprising headcount savings,
catalogue paper savings and the sale of the
head ofﬁce in Oxford, combined with a move to
smaller accommodation. The total of annualised
cost reductions achieved so far is £7 .6m and
further actions are planned to deliver the
annualised £10m targeted for 2008. throughout the business’s 55 local branches.
Allied’s close relationships with its suppliers 
is another key strength, with joint promotion
programmes and suppliers often accompanying
Allied staff on customer visits. In addition,
customer service and stock turn have improved
during the year.
The development of the new warehouse and
ofﬁce in Fort Worth is proceeding according to
plan. The new ofﬁce move is now complete and
the warehouse move is planned in the middle of
the next ﬁnancial year. Move costs of around
£1m are expected to be incurred in the next
ﬁnancial year.
Asia Paciﬁc 
2007 2006
Revenue £76.6m £69.5m
Revenue growth 1 7 .3% 14.5%
Contribution £8.4m £7 .2m
% revenue 11.0% 10.4%
Asia Paciﬁc also accelerated its revenue growth
from 2006. All regions grew signiﬁcantly
including North Asia (19%), South Asia (38%),
Australasia (8%) and Japan (15%). We have
strengthened the senior management across
the region.
In China, the business started implementing its
plan to accelerate its revenue growth. The
business recently launched its ﬁfth Chinese
language catalogue with 50,000 locally stocked
products and another 100,000 extended range
products from Japan and North America available
via the web. The sales force and number of local
sales ofﬁces have been increased and there are
now nearly 300 employees involved in sales and
marketing in China. The revenue investment by
the Group on this initiative in the ﬁnancial year
was around £1.3m.
South Asia’s strong growth was due to the
successful customer acquisition programme
and the contribution from the new Thailand
sales ofﬁce, which started trading during 
the year.
Both Australasia and Japan continued to grow
strongly during the year. e-Commerce now
represents some 57% of Japan’s revenue.
UK
2007 2006
Revenue £356.2m £353.6m
Revenue growth 1.9% (3.0%)
Gross margin 53.3% 53.0%
Operating cost % of revenue (26.4%) (25.6%)
Contribution £95.9m £96.9m
% of revenue 26.9% 27 .4%
The UK returned to revenue growth with the
strategy delivering results. The full year growth
of 1.9% was 4.9% points higher than last year.
Growth improved during the year from around 1%
in the ﬁrst half to nearly 3% in the second half. 
The business beneﬁted from the improvement
in the UK manufacturing economy and the
implementation of the strategy. There has been
increased sales focus with the sales force
realignment to the two customer offers of EEM
and MRO, the growth in larger order business at
good margins and continued large account wins. 
e-Commerce grew signiﬁcantly and accounted
for 32% of the UK business’s revenue. The
internet trading channel has continued to be
upgraded with additional functionality being
created to support our EEM customers.
This was the ﬁrst full year for the UK on the 
EBS platform and while certain operational 
costs have increased post go-live, there has
been a focus on realising the beneﬁts of the
system. The system facilitates the use of
targeted technology-based discounts which
have increased sales. In addition, an ongoing
continuous improvement culture is being 
used to drive enhanced customer service 
and greater efﬁciency in the business.
EBS
2007 2006
Depreciation and 
amortisation £10.7m £6.8m
Project and local 
business cost £8.3m £18.3m
Total £19.0m £25.1m
Cash outflow £16.0m £38.0m
The roll out of EBS in Europe is now complete. 
By the year end, a single integrated regional
system supported our businesses in Austria,
France, Germany, Italy and the UK. The ﬁnal
element of the European roll out was completed
in May 2007 , with the businesses in Benelux,
Ireland, Scandinavia and Spain migrating to the
EBS platform. During their ﬁrst few months post
implementation these businesses are being
supported by teams from the rest of the Group
with previous EBS expertise.
The beneﬁts of an integrated system are
starting to be realised. While there are some
higher operating costs initially after
implementation of the new system, the costs
are expected to be lower in the medium term.
This was the pattern experienced in France after
its implementation in June 2003. In 2007 , the
UK beneﬁted from the additional ﬂexibility of
technology-based customer discounts which
have helped drive its sales growth. In the future,
we expect increased stock turn in Europe due 
to the improved stock visibility and regional
demand planning.
The EBS implementation in our Asian operations
was virtually completed during the year, with
the Chinese sales ofﬁces being brought onto 
the system. The timing of the roll out of EBS 
into our North American business will be
determined after the completion of the local
warehouse move.
The EBS costs have reduced by £6m year on
year to £19m. This is as a result of the lower
implementation costs (£10m) following the 
high prior year costs as a result of the UK
implementation, offset in part by the higher
depreciation (£4m) as the asset has now been
in use for a full year. The cash outﬂow has
reduced by £22m year on year principally due
to the lower implementation costs (£10m) and
the prior year safety stock, associated with the
UK implementation, coming out in this ﬁnancial
year (£1 4m).
In the next ﬁnancial year the total EBS costs,
including depreciation, implementation costs,
and system development costs incurred post
implementation, are expected to be slightly
lower than in 2007 . As there have been
implementation costs incurred in early 2008,
the depreciation and implementation costs will
10 Electrocomponents plc Annual Report and Accounts 2007
Business Review continued Product Management
The role of Product Management is to manage
the selection and purchase of some 350,000
distinct products around the world. 
During the year, Product Management
strengthened relationships with key EEM 
and PCA suppliers. This has led to more joint
initiatives, focusing on product range
development, marketing and web promotions
across all geographies. Examples extend to
suppliers where their European customers, 
who wish to buy small volumes of certain
products, are directed to our local operating
companies for fulﬁlment.
Media Publishing
The Media Publishing Process is responsible 
for the design and production of the Group’s
publications and associated content 
for e-Commerce.
Further strides have been made by Media
Publishing to reduce costs particularly in the
print and paper costs of our catalogues whilst
maintaining their quality.
CAPITAL STRUCTURE
Net debt of £1 36.2m comprised gross
borrowings of £155.3m (currency split: £52.6m
in US Dollars, £40.5m in Euros, £31.9m in
Japanese Yen, £10.3m in Sterling and the
balance of £20.0m in other currencies), and
ﬁnancial assets of £19.1m (currency split:
£1.9m in Sterling, £1 3.3m in Euros and the
balance of £3.9m in other currencies). This
currency mix is due to the hedging of translation
exposure, interest differentials and tax
efﬁciency. The peak net borrowing during the
year was £1 79m. In addition the pension deﬁcit
(net of associated deferred tax) was £29.1m 
at 31 March 2007 .
The Group’s main sources of debt are 
a syndicated facility for $1 20m and £110m 
from nine banks and a syndicated facility 
for £63.5m from three banks, both maturing 
in February 2010. At 31 March 2007 , the 
Group also had a bilateral facility for $100m 
in place which was terminated in early 
April 2007 .
TAXATION
The Group’s effective tax rate is 34% of proﬁt
before tax which represents a 1% point increase
from the prior year due to the increasing
proportion of Group proﬁts realised in higher 
tax countries outside the UK. This rate includes
the effect of a signiﬁcant, and ongoing, increase 
in the deferred tax liability due to the tax
amortisation of overseas goodwill. The deferred
tax liability is not expected to crystallise in 
the foreseeable future. This, together with 
the differing timing of payments, causes a
discrepancy between the effective tax rate 
of 34% and the cash tax rate, of 26% of proﬁt
before tax. 
PENSION
The Group has deﬁned beneﬁt schemes in 
the UK, Ireland and Germany. All these 
schemes are now closed to new entrants.
Elsewhere (including the replacement 
schemes in the UK and Ireland) the schemes
are deﬁned contribution.
Under IAS 19 the combined deﬁcit of the 
deﬁned beneﬁt schemes was £38.7m at 
31 March 2007 .
The most recent valuation of the UK deﬁned
beneﬁt scheme was carried out as at 
31 March 2007 . This disclosed a gross deﬁcit 
of £31.9m. To eliminate the deﬁcit, based on 
the assumptions used in the valuation as at 
31 March 2004, the Group will make additional
annual payments to the scheme for the next 
1 2 years (2007: £4.5m and increasing at 
3% per year).
RISKS
Electrocomponents has an established risk
assessment and management process that
provides regular reports to the Board and the
Electrocomponents plc Annual Report and Accounts 2007 11
continue to be disclosed as EBS costs. The costs
of developing the system post implementation
to drive the strategy and beneﬁts will be
included with the other information system
costs and disclosed within Process costs. 
As in prior years the depreciation and
implementation costs will be disclosed as 
EBS costs. From 2009 it is anticipated that the 
EBS costs will not be separately disclosed and
the ongoing EBS depreciation costs will be
included within Process costs.
PROCESSES
2007 2006
Process costs £82.9m £81.9m
Process costs % of revenue 9.4% 9.9%
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. The costs have reduced year on year 
as a percentage of revenue even after allowing
for the £3.1m one off Information Systems
costs incurred last year. 
Information Systems
The role of Information Systems is to support
and develop the enterprise system applications
that are required by the business.
The recent focus has been on consolidating 
the operations of the businesses on the 
EBS platform. Other activities have included
completing the global technology refresh 
of desktop hardware, software and email
infrastructure. The ongoing move of core
applications to our data centres has also
strengthened our disaster recovery capabilities.
Supply Chain
The Supply Chain Process is responsible 
for all the logistics surrounding product 
supply and the management of stock levels.
The dual objectives have been to maintain high
levels of customer service whilst also starting 
to exploit the regional planning capabilities
provided by EBS. This has now started,
evidenced by the improvement in stock turn
from 2.5 to 2.7 times.
Headline proﬁt before tax
up15 . 9% Executive Committee on the principle risks 
and uncertainties facing the business, and on
progress with their control and mitigation. 
It is a key element of our management 
strategy to respond to the risks identiﬁed 
and to the challenges they present. 
We have summarised our most signiﬁcant 
risks as follows:
Group Strategy
Considerable progress has been made on the
implementation of the Group’s strategy as
outlined in the Group Chief Executive’s Report
and the Business Review. The most signiﬁcant
risk to the Group strategy is that it does not
deliver the anticipated results.
The risk is being responded to in many ways,
focusing on the development of the EEM and
MRO ranges, supported by robust customer
research and dedicated sales teams to ensure
the relevance and competitiveness of the offers
in meeting customer needs. The effectiveness
of these actions are closely monitored and
assessed for their contribution to the success 
of the strategy.
Pricing
We operate in highly competitive and innovative
markets worldwide. To be successful we must
continue to improve value for money rating
through market pricing, high service and
effective customer communication. The risk 
is that we do not maintain our service
differential or price positioning with our
competitors, and that we fail to communicate
with our customers effectively. 
To address the risk we closely monitor market
developments and competitor pricing, and
assess the potential these may have to inﬂuence
the market. We have robust market pricing
frameworks in place to respond quickly and
decisively to these risks, with continuing activities
to reﬁne, improve and effectively communicate
our service offer in each of our markets. 
People
The successful implementation of our 
Strategy is ultimately dependent on the
expertise, commitment and strong support 
of our employees. Developing the appropriate
skills and a high performing, supportive
organisational culture are therefore key 
ongoing challenges.
T o ensure individuals have a clear understanding
of their contribution to the Group Strategy,
personal objectives and rewards are being
aligned with Group Strategy delivery to ensure
there is successful operational implementation.
We continue to enhance technical skills by the
development of internal competencies and to
supplement these by adding new expertise
through external appointments. 
Our values and culture activities continue to be
promoted throughout the Group emphasising
the positive attributes of speed, ﬂexibility and
customer service. These values are embedded
into the UK organisation by ‘continuous
improvement’ workshops where employee
teams are encouraged to identify, develop and
implement process improvements to promote
customer satisfaction and process efﬁciency.
IT and Communication Systems
We are heavily dependent on our data
processing and communications systems 
to support our worldwide distribution
businesses. The completion of our EBS systems
implementation in Europe, and the systems
upgrade in our Asian businesses have
substantially replaced our ‘Legacy’ data
processing systems and has signiﬁcantly
improved the Group’s risk proﬁle.
The introduction of an integrated data network
and infrastructure does, however, introduce new
risks of region-wide dependencies on common
systems solutions. 
We have made signiﬁcant investments in
resilient systems infrastructure, systems
knowledge and region-wide disaster recovery
provision. New Incident Management processes
and updated business continuity arrangements
have been introduced to support our business
units should systems disruption occur. These
processes are subject to ongoing testing and
review with sharing of experiences and solutions.
As we build our experience of operating in the
new systems environment we are conﬁdent
that this risk will be progressively mitigated.
Summary
The identiﬁcation, assessment and control 
of these risks are an integral part of the
management of the business, and we believe
we have made signiﬁcant and positive
improvements over the past 1 2 months.
CORPORATE RESPONSIBILITY
Corporate Responsibility (CR) is part of our
business philosophy and we have established 
a set of CR principles both to guide our trading
practices and to set ethical standards for our
management processes. Electrocomponents 
is a member of the FTSE4Good index and we
participate in the Carbon Disclosure Project. 
Our CR procedures and processes form part 
of our established procedures for the
identiﬁcation, management and control of 
risk to the business. Our CR principles are
communicated to all employees in our Group
Policy Manual and in induction and other
training courses. We support independently
managed procedures for the conﬁdential
reporting of breaches of these principles.
The General Managers of each business have
operational responsibility and, in practice, all
employees are responsible for ensuring that our
CR policies are implemented and for identifying
opportunities for further development.
Ethical Trading
As we develop and expand our product range
and supplier base, we ensure that all new 
and existing direct suppliers are aware of 
our corporate responsibility principles and
undergo a process of assessment and, where
appropriate, audit based on Ethical Trade
Initiative (ETI) guidelines. 
To date we have conducted ethical audits at 
64 direct suppliers in countries of concern as
deﬁned by the ETI. These suppliers are audited
on a three year cycle. If suppliers are unable 
to satisfactorily address matters raised in an
audit assessment they will be rejected.
12 Electrocomponents plc Annual Report and Accounts 2007
Business Review continued Health and Safety
Our Group-wide health and safety management
processes are based on the application of risk
management techniques and on the
Occupational Health and Safety Management
Standard OHSAS18001. We use Group-wide
metrics to monitor performance, with quarterly
summaries to the Executive Committee and 
an annual Board review. 
Health and Safety KPIs
2007 2006
All accidents per 
100,000 hours worked 3.39 3.92
Lost time accidents* per 
100,000 hours worked 0.33 0.43
* Lost time accidents are those where the employee is off work for at least
24 hours
In 2007 , 33 lost time accidents were reported
(2006: 43). Underlying accident trends reﬂect
this improvement with the total number of
accidents including lost time accidents, per
100,000 hours worked, also down on 2006. 
The working time lost due to accident or
occupational ill health conditions for the 
year to 31 March 2007 was 0.3 days 
per 1,000 days worked. 
Manual handling activities, and slips, trips and
falls accidents continue to be the most frequent
cause of accidents. These areas will be the focus
of continuing accident reduction initiatives in
2007 including targeted investments in process
improvements, employee training and
workplace inspection processes. 
The Group health and safety objectives for 2008
will continue to focus on accident reduction
together with the development of safety
auditing and external benchmarking. 
Environment
Our business activities are concerned with
distribution, and as such we are not an intensive
user of energy or generator of large amounts of
waste. We are committed to minimising the
impact of our activities on the environment,
which we measure by calendar year. Our primary
environmental impacts are carbon emissions
due to the use of energy in our facilities, the
generation of waste and water usage which are
analysed below. Currently 53% of our staff are
employed in ISO1 4001 Environmental
Management Standard certiﬁed operations.
During 2006 our environmental performance
was inﬂuenced by a period of signiﬁcant
business activity with high growth, and major
Group projects including EBS rollout, the global
technology refresh and the US warehouse build. 
Energy intensity at our premises (i.e. indexed 
to Group turnover) was reduced by some ﬁve
per cent. Freight transport emissions indexed to
turnover rose slightly in the year however,
reﬂecting business growth and more shipments
from the UK warehouses into Europe and Asia.
The completion of the EBS systems integration
project in Europe will reduce dependence on the
UK warehouses for European order fulﬁlment.
Major Group projects also contributed to an
increase in business travel in 2006 over 2005. 
A number of initiatives are underway to improve
performance, with more business units now
sourcing electricity generated from renewable
sources compared to 2005, although this
remains low as a percentage of total electricity
purchases. Our investigations into renewable
sources of energy for the UK warehouses
continue. The programme to replace ‘Legacy’
computer equipment across the Group with ﬂat
screen technology has now been completed.
Emissions KPIs
Total Emissions
Total Emissions (Tonnes CO2) 
(Tonnes CO2) per £m Turnover
2006 2005 2006 2005
Premises 
Energy Use*# 19,945 19,290 22.7 22.3
Freight 
Transport** 10,7 59 9,594 12.3 11.6
* includes CO2 due to electricity (constant CO2 factor for all
countries/states), natural gas and fuel oil use
** based on supplier estimates, subject to approximations
# 2005 data amended to correct under reporting on gas emissions
The total quantity of waste generated by our
business activities increased during 2006
reﬂecting both international growth and 
also the routine large scale purchase of
materials such as pallets as part of periodic
replacement programmes. 
Our catalogues continue to use optimised
grades of paper to reduce paper consumption
and where practicable distribution costs. All pulp
is obtained from Forestry Stewardship Council
(FSC) or Sustainable Forestry Initiative (SFI)
approved sources. Catalogues and other
promotional literature are printed in facilities
accredited to the ISO1 4001 standard as 
a minimum, whilst two thirds of catalogues 
and all CDs are produced in EMAS 
(Eco-Management and Audit System) 
and ‘Nordic Swan’ accredited facilities.
Waste KPIs
Total Waste Total Waste (Tonnes) 
(Tonnes) per £m Turnover
2006 2005 2006 2005
Total Waste 2,507 1,947 2.9 2.4 
Waste reused
/recycled 1,81 2 1,401 2.1 1.7 
A small reduction in water consumption was
recorded for 2006 over 2005, with the main
European businesses in particular reporting
reductions in overall water usage rates.
Water KPIs
(m
3
) Water 
Total Water Consumption 
Consumption (m
3
) per employee
2006 2005 2006 2005
Total Water Use 40,972 41,900 6.9 7.2 
Employee involvement has been encouraged
with the launch of the ‘Bright Ideas’ initiative
sponsored by the Group Chief Executive, where
employees contribute their ideas on business
improvement. Environmental suggestions
featured strongly in the feedback and a number
are being investigated for adoption.
Veriﬁcation
Electrocomponents evaluates its CR policies and
performance as part of its risk management
and internal audit processes and those
locations accredited to ISO1 4001 and
OHSAS18001 have periodic external audits. 
We have considered external veriﬁcation of 
the Group’s CR performance, but have decided 
to limit this to external professional advice on
speciﬁc matters as required.
Electrocomponents plc Annual Report and Accounts 2007 13 14 Electrocomponents plc Annual Report and Accounts 2007
Board of Directors >
1. H Mamsch, Chairman
Helmut Mamsch, 62, joined as Chairman
Designate in September 2006 and took over
as Chairman in October 2006. He is a Non-
Executive Director of both GKN plc, and SAPPI
Ltd (South Africa). He is also a Supervisory
Board member of K+S AG. He was formerly
Deputy Chairman of LogicaCMG plc, a Non-
Executive Director of RMC Group plc and a
Management Board member of VEBA AG 
(now E.ON AG). (Chairman of the Nomination
Committee) (a)
2. I Mason MBA, Group Chief Executive
Ian Mason, 45, 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 for The Boston
Consulting Group.(Chairman of the Group
Executive Committee) (b) (c)
3. S Boddie MA ACA, Group Finance Director
Simon Boddie, 47 , joined as Group Finance
Director in September 2005 from Diageo plc.
He joined Diageo in 1992 where he held a
variety of senior ﬁnance positions, latterly 
as Finance Director of Key Markets. 
(Chairman of the Treasury Committee) (b) (c)
4. K Hamill BA FCA, Non-Executive Director
Keith Hamill, 54, joined as a Non-Executive
Director in July 1999. He is Chairman of Tullett
Prebon plc, Alterian plc and Travelodge Limited
and Deputy Chairman of Collins Stewart plc.
He was previously Chairman of Go Fly, was
Finance Director of WH Smith, Trust House
Forte and United Distillers, and was a partner
in Pricewaterhouse Coopers. He is Deputy
Chancellor of Nottingham University. 
(a) (d) (e) 
5. N J Temple, Senior Non-Executive Director
Nick Temple, 59, 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, Retail
Business Solutions Ltd and Capula Limited. 
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.(a) (d) (e)
6. L Atkinson MA D.Phil, 
Non-Executive Director
Dr Leslie Atkinson, 63, 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, Samworth Brothers
(Holdings) Ltd and Witan Paciﬁc Investment
Trust plc. (Chairman of the Remuneration
Committee) (a) (d) (e) 
7 . T G Barker MA, Non-Executive Director
Timothy Barker, 67 , 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. He is a Non-Executive
Director of Drax Group plc. (Chairman of the
Audit Committee) (a) (d) (e)
8. I Haslegrave, LLB ACIS, General Counsel
and Company Secretary
Ian Haslegrave, 38, joined the Company in
September 2006 from Viacom Outdoor Limited
where he was International Legal Director.
Previously he worked at United Biscuits
Limited and Freshﬁelds Bruckhaus Deringer.
(b)
a – member of the Nomination Committee
b – member of the Treasury Committee
c – member of the Group Executive Committee
d – member of the Remuneration Committee
e – member of the Audit Committee
1
5
2
6
3
7
4
8 Report of the Directors
The Directors present their report on the affairs of the Group together with the audited
accounts for the year ended 31 March 2007 .
Principal activity and Business Review
The principal activity of the Group is the distribution of electronic, electrical and
industrial and commercial supplies and services, through its 27 operating companies
and its distributors. Signiﬁcant events during the year are detailed in the Chairman’s
statement, the Group Chief Executive’s review, and the Business Review shown on
pages 8 to 1 3. The Business Review is incorporated in this report by reference.
Results and dividends
Results for the year are set out in the income statement on page 24. An analysis of
revenue, proﬁt and net assets by activity is shown in note 2 on pages 29 and 30. 
The Directors recommend a ﬁnal dividend of 1 2.6p per ordinary share, to be paid, if
approved, on 27 July 2007 which, together with the interim dividend of 5.8p per share
paid in January, amounts to a total dividend of 18.4p for the year (2006: 18.4p). 
Corporate Governance
In respect of the year ended 31 March 2007 , the Company has been subject to the
provisions of the Combined Code on Corporate Governance published in July 2003 
and revised in June 2006 (the ‘Combined Code’). Section 1 of the Combined Code
establishes 1 7 main principles and 26 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 19 to 22.
Directors and Directors’ Independence 
The Board comprises the Chairman, who is part-time, two Executive Directors and 
four independent Non-Executive Directors, one of whom will retire at the AGM in 2007 .
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 continuing 
Non-Executive Directors 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. The Board considered that the Chairman also met the
independence criteria on his appointment on 9 October 2006.
Biographical details of the Directors at the date of this report are set out on page 1 4,
together with details of their membership of Board Committees. Brief details of the
Chairman, the Group Chief Executive and the Senior Independent Director are set out
on page 16.
Directors’ interests in the shares of the Company are shown on pages 16 and 22.
The Board has a formal schedule of matters reserved for its approval. It is responsible
for the 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 Group Executive 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 Company has continued to secure
appropriate insurance cover for its Directors.
Retirement by rotation and new appointment
Mr Temple wishes to retire at the forthcoming Annual General Meeting and will not be
seeking re-election.
On 9 October 2006, Mr Lawson retired as Chairman and was replaced by Mr Mamsch.
Mr Mamsch therefore stands for formal election at the forthcoming Annual 
General Meeting.
Dr Atkinson and Mr Mason will 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. Dr Atkinson does not have a service contract. 
Mr Mason has a one year rolling contract.
Following formal performance evaluation, the Chairman conﬁrms that the
performance of Dr Atkinson as Non-Executive Director continues to be effective and
that he demonstrates commitment to the role. On the expiry of Dr Atkinson’s second,
three year term as a Non-Executive Director his performance was subject to a
particularly rigorous review by the Board. 
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 1 4 and 16. The Board formally receives minutes 
of meetings of all its committees and can request presentations or reports on 
areas of concern.
THE GROUP EXECUTIVE COMMITTEE consists of the Executive Directors and certain
senior managers with Operating Company and Process responsibilities. 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 Group Executive
Committee: the development and recommendation of strategic plans for consideration
by the Board; the 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 and meets at least
three times a year and more frequently if required. The Committee reviews the major
risks facing the business, assists the Board in its duties regarding ﬁnancial accounts
and continually 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 16 to 1 7 .
THE TREASURY COMMITTEE consists of the Group Chief Executive, the Group Finance
Director, 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 quarterly.
THE REMUNERATION COMMITTEE consists of all the Non-Executive Directors and meets
as required but not less than twice per year 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 in 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 is 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 Mamsch as Chairman. 
Board Evaluation
During the year the Chairman has held meetings with the Non-Executive Directors,
without the Executives present. In addition, the Board has carried out a formal
evaluation of its own performance. A detailed questionnaire was issued to Board
members for the purpose of assessing overall Board performance. The responses 
to the questionnaire were collated independently by the Company Secretary, who
discussed them in depth with the Chairman. The Chairman subsequently prepared 
a report on the results of the questionnaire for Board consideration. The Board
discussed the report and agreed necessary follow up actions.
Electrocomponents plc Annual Report and Accounts 2007 15 Report of the Directors continued
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 the relevant members at these meetings:
Scheduled Audit Remuneration Nomination 
Board Committee Committee Committee
Meetings Meetings Meetings Meetings
Number of meetings held 
during the year 9454
Chairman – R A Lawson 
(1)
5–––
Chairman – H Mamsch 
(2)
6–––
Executive Directors
I Mason 9–––
S Boddie 9–––
Non-Executive Directors
K Abbott 
(3)
2222
L Atkinson 
(5)
8254
T G Barker 
(6)
9424
K Hamill 7333
F D Lennertz 
(4)
3–32
N J Temple 9454
(1) Mr Lawson ceased to be Chairman on 9 October 2006.
(2) Mr Mamsch was appointed to the Board on 1 September 2006.
(3) Mr Abbott ceased to be a Director on 1 3 July 2006.
(4) Dr Lennertz ceased to be a Director on 1 4 July 2006.
(5) Dr Atkinson was appointed to the Audit Committee on 1 4 July 2006.
(6) Mr Barker was appointed to the Remuneration Committee on 1 4 July 2006.
Chairman, Group Chief Executive and Senior Independent Director
The roles of Chairman and Group Chief Executive are held by different individuals. 
The division of responsibilities between the Chairman and Group 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 Group 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 as the Senior Independent Director 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. Mr Barker will
replace Mr Temple as Senior Independent Director on Mr Temple’s retirement following
the Annual General Meeting.
Directors’ Interests 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 2007 31 March 2006
or date ceased or date on which
to be a Director became a Director 
K Abbott 
(a)
10,000 10,000
L Atkinson 2,260 2,260
T G Barker 15,000 11,000
S Boddie 25,000 Nil
K Hamill 5,183 5,183
R A Lawson 
(c)
403,374 403,374
F D Lennertz 
(b)
8,034 8,034
H Mamsch 
(d)
10,000 Nil
I Mason 62,349 37 ,349
N J Temple 10,040 10,040
(a) Mr Abbott ceased to be a Director on 1 3 July 2006.
(b) Dr Lennertz ceased to be a Director on 1 4 July 2006.
(c) Mr Lawson ceased to be a Director on 9 October 2006.
(d) Mr Mamsch became a Director on 1 September 2006.
As at 31 March 2007 the Electrocomponents Employee Trust (the ‘EET’) held 308,41 7
shares. As Executive Directors are potential beneﬁciaries of the EET they are treated
for company law purposes as being interested in the shares held in the EET.
Directors’ interests in Incentive Plans and Share Options are disclosed on page 22.
Up to 30 April 2007 there have been no changes in the Directors’ interests or rights to
subscribe for shares.
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 Group
Chief Executive, Group 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 Group 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. The Senior Independent Director
is available to attend meetings with major shareholders at their request. 
The Chairman also held meetings with a representative group of shareholders in
November 2006 shortly after the interim results to obtain their views on strategy and
performance, the results of which were 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 Group has an established and on-going process of risk management and internal
control which has continued throughout the year under review and up to the date 
of approval of the Annual Report and Accounts. The Board is responsible for the
effectiveness of the Group’s system of internal control, which has been designed 
and implemented to meet the particular requirements of the Group and the risks 
to which it is exposed. 
In accordance with the requirements of the Combined Code and the recommendations
of the Turnbull Review Group on internal control, the Directors have reviewed the
effectiveness of the system of internal control. The Audit Committee receives regular
reports on the performance of the system of internal control, and on its effectiveness
in managing the material risks and in identifying control failings or weaknesses. The
Board then formally receives the minutes of each Audit Committee meeting. 
The Audit Committee dedicates one meeting a year to the review of the risk
management and internal control system with the minutes of the review being
formally reported to the Board. Together with the provision of regular updates to the
Board on material risk issues, these allow the Board to make the assessment on the
systems of internal control for the purposes of making its public statement. 
During the period under review, no signiﬁcant changes to the material risks to which
the Group is exposed were identiﬁed, and no control failings or weaknesses were
identiﬁed that resulted in unforeseen material losses. The internal control system can
provide reasonable but not absolute assurance against material misstatement or loss.
Internal Financial Controls
Internal ﬁnancial controls represent the systems employed by the Directors to enable
them to discharge their responsibilities for ﬁnancial matters. Those responsibilities
are noted on page 18. 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 Group Executive 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 are prepared by all operating
companies and Group-wide processes. These contain forecasts of the current ﬁnancial
year which are updated four times per year and are compared against the previous
forecast, the budget and prior year actuals. Variances are reviewed by the Group
Executive 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.
16 Electrocomponents plc Annual Report and Accounts 2007 Audit Independence
The Audit Committee and Board put great emphasis on the objectivity of the
Company’s auditors KPMG Audit Plc (‘KPMG’) in their reporting to shareholders.
The Audit Committee met four times during the year ended 31 March 2007 and the
Group Audit Engagement Director from KPMG was present at three of these meetings
to ensure full and open communication. In addition to the members of the Committee,
it is normal for the following to receive the Committee papers and attend meetings:
1. the Chairman of the Company
2. the Group Chief Executive of the Company
3. the Group Finance Director and Group Controller
4. the Head of Internal Audit
5. the Company Secretary
Their attendance is at the invitation of the Committee Chairman only and does not
restrict the Audit Committee’s independent decision making. 
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 external 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 Group 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 Group Finance
Director as appropriate must ensure that the external auditors are satisﬁed that
there is no issue as regards independence.
• The Group 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 are adequately considered.
• The Group 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.
Financial Instruments
For information on the Company’s use of ﬁnancial instruments, see note 2 1 on pages
4 1 to 43 to the annual report and accounts.
Compliance with the Combined Code
During the year ended 31 March 2007 , the Directors consider that the Company
complied with the provisions set out in Section 1 of the Combined Code, except that
the current Senior Independent Director has not attended meetings with major
shareholders having not been requested to do so and there was no evaluation of 
the Chairman. The Chairman was appointed on 9 October 2006 and therefore the
Directors determined that he would be evaluated later during 2007 .
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 2007 represent 43 days
(2006: 43 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
31 March 1982 was 40p.
Substantial Shareholders
As at 20 May 2007 the following interests in shares had been notiﬁed to the Company:
Number Percentage 
of Shares held 
Silchester International Investors Limited 69,085,874 15.87%
Franklin Templeton Investments 38,647 ,085 8.88%
Prudential plc group of companies 29,668,573 6.81%
UBS AG 29,079,7 14 6.68%
Sprucegrove Investment Management Ltd 28,268,337 6.49%
Oppenheimer Funds Inc. and Baring Asset 
Management Ltd 18,325,922 4.2 1%
Millgate Capital Inc. 15,900,000 3.65%
Legal & General Group plc 14,966,6 17 3.43%
Barclays plc 13,937 ,895 3.20%
Share capital
Full details of share options and shares issued under the terms of the Company’s
share schemes can be found in note 7 to the accounts on pages 32 and 33.
Political and Charitable Contributions
The Group made no political contributions during the year. Charitable contributions
within the UK amounted to £10,283 (2006: £15,408) and outside the UK amounted 
to £1 4,449 (2006: £11,077).
Disclosure of Information to Auditors
The Directors who held ofﬁce at the date of approval of this Directors’ Report conﬁrm
that, so far as they are each aware, there is no relevant audit information of which the
Company’s auditors are unaware; and each Director has taken all the steps that they
ought to have taken as Directors to make themselves aware of any relevant audit
information and to establish that the Company’s auditors are aware of that information.
Annual General Meeting
The Notice of the Annual General Meeting, which will be held at 1 2:00 noon on 
Friday 1 3 July 2007 at the Company’s premises, The International Management
Centre, 8050 Oxford Business Park North, Oxford, OX4 2HW, is set out on page 54.
In addition to conducting the ordinary business, the following special business 
will be considered:
ELECTRONIC COMMUNICATION: The Companies Act 2006 has introduced new provisions
(which came into effect on 20 January 2007) dealing with company communications
to shareholders and facilitating communications in electronic form and by means of 
a website.
Electrocomponents plc Annual Report and Accounts 2007 17 These shareholder electronic communications provisions are intended to make it
easier for UK companies to communicate with their shareholders. In particular, they
enable the Company, subject to certain conditions, to treat its shareholders as having
deemed to agree to communication by means of a website. In order to effect these
provisions, in addition to the passing of this resolution, the Company must also 
write to shareholders to request them individually to agree that the Company can
communicate with them by way of its website. In the event that a shareholder does
not respond with an objection to this request within 28 days from the date of request,
the shareholder will be deemed to have agreed to receive notices, documents or
information from the Company by means of a website. The Company plans to send
such a request to its shareholders prior to the publication of its 2008 Annual Report.
Any shareholder may indicate a wish to continue to receive printed documents at any
time and any agreement to receive documents or information electronically or by
means of a website can be revoked at any time. Every shareholder who has agreed 
to receive communications by website will be notiﬁed when a document is available
on the Company’s website.
RENEWAL OF DIRECTORS’ AUTHORITY FOR THE PURCHASE BY THE COMPANY OF ITS OWN
SHARES: At the 2006 AGM, shareholders gave the Company renewed authority to make
market purchases of up to approximately 10% at that time of the Company’s issued
ordinary share capital. As at the date of this report, the Company has made no such
purchases under this authority. Nevertheless, the Directors believe it advisable to
seek renewal of this authority at each AGM. 
This resolution is proposed as a special resolution and will authorise market
purchases of up to 43,532,000 ordinary shares (being approximately 10% of the
issued share capital as at 2 1 May 2007). 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. As at 2 1 May 2007 , a maximum of
23,246,237 shares would be required to satisfy all outstanding options to subscribe
for equity shares and conditional awards of shares. This represents 5.34% of the
issued share capital. If this resolution is passed and the full authority to buy back
shares were used, then shares required for such purposes would represent 5.93% 
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 2 1 May 2007 , the Company 
held no ordinary shares in Treasury.
By order of the Board
Mr Haslegrave
Group Counsel & Company Secretary
30 May 2007
STATEMENT OF DIRECTORS’ RESPONSIBILITY
The Directors are responsible for preparing the Annual Report and Accounts in
accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent Company accounts
for each ﬁnancial year. Under that law they are required to prepare the Group accounts
in accordance with IFRSs as adopted by the EU and applicable law and have elected 
to prepare the parent Company accounts in accordance with UK Accounting Standards
and applicable law (UK Generally Accepted Accounting Practice).
The Group accounts are required by law and IFRSs as adopted by the EU to present
fairly the ﬁnancial position and the performance of the Group; the Companies Act
1985 provides in relation to such accounts that references in the relevant part of 
that Act to accounts giving a true and fair view are references to their achieving 
a fair presentation.
The parent Company accounts are required by law to give a true and fair view of the
state of affairs of the parent Company and of the proﬁt or loss of the parent Company
for that period.
In preparing each of the Group and parent Company accounts, the Directors are
required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• for the Group accounts, state whether they have been prepared in accordance 
with IFRSs as adopted by the EU;
• for the parent Company accounts, state whether applicable UK Accounting
Standards have been followed, subject to any material departures disclosed 
and explained in the parent Company accounts; and
• prepare the accounts on a going concern basis unless it is inappropriate to
presume that the Group and the parent Company will continue in business.
The Directors are responsible for keeping proper accounting records that disclose with
reasonable accuracy at any time the ﬁnancial position of the parent Company and
enable them to ensure that its accounts comply with 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.
Under applicable law and regulations, the Directors are also responsible for preparing 
a Directors’ Report, Directors’ Remuneration Report and Corporate Governance
Statement that comply with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate 
and ﬁnancial information included on the Company’s website. Legislation in the UK
governing the preparation and dissemination of accounts may differ from legislation
in other jurisdictions.
The report and accounts contain 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 positions,
strategy, projected costs, plans and objectives for the managements 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 intentions or obligations to update forward-looking statements contained herein.
18 Electrocomponents plc Annual Report and Accounts 2007
Report of the Directors continued Remuneration Report
Remuneration Committee 
Role and Membership
The Remuneration Committee is responsible for recommending overall remuneration
policy in respect of the Executive Directors, the Chairman and senior managers. The
Board as a whole determines the remuneration of the Non-Executive Directors. 
The Committee was chaired throughout the year by Dr Atkinson. The other members 
of the Committee over the year were Mr Hamill, Mr Temple, Mr Abbott (until his
resignation from the Board on 1 3 July 2006), Dr Lennertz (until his resignation 
from the Board on 1 4 July 2006), and Mr Barker, who joined the Committee on 
1 4 July 2006. The Chairman was invited to attend Committee meetings during the
year. The Committee met ﬁve times during the year. Attendance by individual 
Committee members is detailed in the Report of the Directors on page 16.
During the year ended 31 March 2007 , 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 1B of the Combined Code. 
Advisers
For the year under review, the Remuneration Committee has taken advice from 
the following:
• Kepler Associates, who provided advice and data in respect of the Executive
Directors’ salary reviews, and have also provided the data required for the
measurement of performance targets relating to the various executive share-based
plans. Kepler Associates provided no other advice or services to the Company;
• the Chairman, Group Chief Executive and Group Finance Director, who have
attended parts of meetings by invitation to advise on speciﬁc questions raised 
by the Committee and on matters relating to the performance and remuneration 
of senior managers; 
• the General Manager – HR, who advised on remuneration of senior managers; and 
• the Company Secretary, who acts as Secretary to the Committee.
Remuneration Policy
Executive Directors
The objectives of the remuneration policy for Executive Directors are to:
• provide a remuneration package which is competitive and performance-linked; and
• 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:
Variable Fixed
• Annual bonus; • Basic salary;
• Long Term Incentive Plan; and • Pension; and
• Executive Incentive Plan. • Other beneﬁts. 
The Committee strives to ensure that shareholders’ interests are served by creating
an appropriate balance between performance-related and non-performance related
components of the remuneration package. In order to fulﬁl its objectives, the
Committee believes that it is important to retain a certain amount of ﬂexibility in
structuring appropriate remuneration, for instance to facilitate the recruitment of
suitably qualiﬁed candidates in a very competitive environment. 
The Chairman and Non-Executive Directors
Remuneration comprises an annual fee for the Chairman and Non-Executive 
Directors of the Company. An additional fee is paid to the Chairmen of the Audit 
and Remuneration Committees. The Chairman and Non-Executive Directors do not
participate in the Company’s incentive or bonus schemes, nor do they accrue any
pension entitlement.
Mr Lawson, who was Chairman until his retirement from the Company on 9 October
2006, has pension arrangements which relate to his previous service as an Executive
Director. Details of Mr Lawson’s service contract are set out on page 2 1 of this report.
Remuneration Components for Executive Directors 
Basic Salary
In determining salary levels, the Committee takes into account the following:
• comparable information for similar job functions in companies of a similar size;
• the international spread and competitive nature of the Group’s businesses; and
• the individual’s experience, performance and contribution in the areas for which
responsibility is held.
Annual Bonus Plan 
A new annual bonus plan has been implemented for the year ended 31 March 2007 with
the aim of ensuring that the incentives for Executive Directors and senior managers
are competitive and more closely aligned to the Company’s ﬁnancial performance. 
For Executive Directors, the plan links bonus to ﬁnancial performance, primarily based
on PBT but also on growth in Group Sales. The performance 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. In the light of
market developments the Committee decided to cap annual bonuses for Executive
Directors at 100% of salary. On-target performance could earn a bonus of 50% of
salary for each Executive Director. For the ﬁnancial year ended 31 March 2007 , the
Executive Directors were awarded bonuses of 58.7% of salary.
The Remuneration Committee has discretion to vary bonus payments for participants
but only in exceptional circumstances. This discretion was not applied in respect of
bonuses for the ﬁnancial year. Annual bonus payments are not pensionable.
Long Term Incentive Plan ( ‘LTIP’)
An award of Shares (an ‘Award’) was made to plan participants under the L TIP in the
year ended 31 March 2007 . The Award is subject to the performance condition detailed
in the paragraph below and is conditional on their continued employment with the
Group for three years, except in certain circumstances. The L TIP is designed to align
long-term incentives with the interests of shareholders and reﬂect current best
practice. Participation in the plan extends to Executive Directors and the Group’s
senior managers. Awards were made over a total of 1,542,118 ordinary shares in 
the Company on 1 4 June 2006. 
Vesting of the Award is dependent upon Electrocomponents’ 3-year Total Shareholder
Return (‘TSR’) percentage out-performance of the FTSE 250 Index (the ‘Index’). For the
Award to vest in full, the Company’s TSR must outperform the TSR of the Index by at
least 20%. If the Company’s TSR is equal to or below the TSR of the Index, the Award will
not vest. Between these two levels the Award will vest on a straight line basis. A cash
payment, equivalent to the dividends that would have accrued on the number of
shares that vest, will be made to participants on vesting.
For the Award to vest, the Committee must additionally be satisﬁed that there has
been a sustained improvement in the Company’s underlying ﬁnancial performance.
The Committee selected TSR as the performance measure because it felt it was the
measure most aligned to shareholders’ interests and the FTSE 250 Index as the
benchmark because Electrocomponents is a constituent of the Index and the Index 
is objective and transparent. 
Executive Incentive Plan (‘EIP’)
The EIP , which is limited to Executive Directors and members of the Group Executive
Committee, is a one-off incentive plan rewarding achievement of the PBT targets 
set for the 2008/09 ﬁnancial year. The award of shares (the ‘Award’) was made on 
1 February 2006. The Award is subject to the performance condition detailed in the
paragraph below and is conditional on participants’ continued employment with 
the Group for three years, except in certain speciﬁed circumstances.
The performance condition is based on the PBT in the 2008/09 ﬁnancial year. If PBT in
the 2008/09 ﬁnancial year is less than £1 30m the Award will not vest. For full vesting
of the award PBT must be £155m in the 2008/09 ﬁnancial year. 20% of the Award will
vest if PBT is £1 30m, with straight-line vesting between these two levels. A cash
payment, equivalent to the dividends that would have accrued on the number of
shares that vest, will be made to participants on vesting.
PBT was selected as an appropriate measure of ﬁnancial performance and the
threshold performance level was based on the Company’s long-term strategy as
previously announced to shareholders. 
For any Award to vest the Committee must additionally be satisﬁed that the
Company’s Return on Capital Employed (‘ROCE’) is at least 25% in the 2008/09
ﬁnancial year. ROCE is return on capital employed excluding any pension liability.
Subject to the agreement of the Remuneration Committee, Awards under both the 
L TIP and EIP may vest where employment does not continue for the full performance
period for ‘good leavers’ and on a change of control. In these circumstances, the
amount of the Award which would vest would be subject to the performance
conditions as described above and would normally be pro rated for time.
Long Term Incentive Share Option Plan (‘LTIOP’)
No awards were made under the L TIOP in the year ended 31 March 2007 and no
further awards will be made under this plan.
Participants were awarded options each ﬁnancial year ended March 2003, 2004,
2005, and 2006, with a ten year life subject to a performance condition based on TSR,
with no options vesting unless TSR performance is above the median for the selected
comparator group, and full vesting only occurring if Electrocomponents is ﬁrst out of
the 1 4 in that group in terms of TSR. The Committee chose TSR because it felt it was
the measure most closely aligned to shareholders’ interests.
Electrocomponents plc Annual Report and Accounts 2007 19 Remuneration Report continued
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 is extended to four, and then ﬁve
years from a ﬁxed base. Once the target has been met in part, however, performance
is not subsequently retested and the unvested part of the option lapses. If the target
has not been met at all at the end of ﬁve years, the option lapses.
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. TSR is calculated in common currency.
The comparator group for the grants made in the ﬁnancial years ended 2003, 2004
and 2005 comprised:
Arrow Electronic Industries Inc Manutan International SA
Avnet Inc Misumi Corporation
Brambles Limited Premier Farnell plc 
Buhrmann NV Rexel SA
Daetwyler Holdings AG T akkt AG 
Grainger (WW) Inc Wolseley plc 
Hagemeyer NV 
Rexel ceased to be part of the comparator group during the ﬁnancial year ended 
31 March 2005 and the Committee agreed not to replace Rexel in the group. For 
the grant made in the ﬁnancial year ended 31 March 2006, therefore, it did not form
part of the comparator group nor will it for the purposes of performance measurement
going forward. 
Executive Shareholding Guidelines
Executive shareholding guidelines have been introduced whereby Executive Directors
are required to build-up their personal holdings of Electrocomponents shares, to 
a value of 200% of salary for the Group Chief Executive and 100% of salary for the
Group Finance Director.
Savings Related Share Option Scheme
Executive Directors can participate in the Savings Related Share Option Scheme which
is open to all UK employees. Performance conditions have not been imposed as they
are not permissible under UK HM Revenue & Customs rules for this type of scheme.
Electrocomponents Group Pension Scheme (‘the Scheme’)
Executive Directors participate in the section of the Scheme that provides deﬁned
beneﬁts on retirement. When the HM Revenue & Customs limits were removed 
on 6 April 2006, the Scheme replaced them with equivalent Scheme-speciﬁc limits
therefore maintaining the cap on beneﬁts (the ‘earnings cap’). The Committee
reviewed the implications of the new pension tax regime from 6 April 2006 on the
Company’s pension arrangements and has not assumed any additional costs or
liabilities as a result of the legislation.
Under the Scheme, the Directors beneﬁt from the following provisions:
• a pension accrual rate of one-thirtieth for each year of service;
• a normal retirement age of 60; 
• 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; and
• 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.
Where payment of a pension on retirement is limited by 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 Boddie and Mr Mason have each elected to receive a salary
supplement in lieu of all of their unapproved pension entitlements, details of which are
included in a table shown on page 2 1.
The table below 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 2007;
• 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.
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 2 1.
20 Electrocomponents plc Annual Report and Accounts 2007
Disclosure of Directors’ Pension Beneﬁts for the Year Ended 31 March 2007 (audited)
Increase/ 
Increase/ (Decrease) in
Age at Accrued pension (Decrease) Transfer value Transfer value transfer value 
31 March as at 31 March in accrued as at 31 March as at 31 March less Directors’ 
2007 2007 pension benefits 2007
(c)
2006
(c)
contributions
(d)
Years £ £ £ £ £
RA Lawson
(a)(b)
62 64,229 (18,037) 1,263,000 1,700,000 (437 ,000)
S Boddie 47 6,335 3,695 72,000 30,000 32,226
I Mason 45 30,294 3,326 314,000 282,000 22,226
(a) Mr Lawson left the scheme on 20 July 2001, and did not accrue any beneﬁt in the year. He retired on 6 April 2006, and these pension ﬁgures represent the pension he is currently receiving. Mr Lawson’s accrued pension and transfer
value have reduced during the year as he took a tax-free cash lump sum of £375,000 in exchange for part of his pension, as permitted by the Scheme rules. If he had not taken the cash lump sum the transfer value at 31 March 2007
would have been £1,685,000. 
(b) Generally, the accrued pension beneﬁts shown are the amounts which would be paid annually on retirement at Normal Retirement Age based on service to the end of the year. However, for Mr Lawson it reﬂects the pension actually in
payment at the end of the year.
(c) Transfer values have been calculated in accordance with Guidance Note 11 (Version 9.2) issued by the actuarial profession.
(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 Directors’ contributions. Service Agreements (not subject to audit)
All current Executive Directors have service agreements that are on a 1 2 month rolling
basis. These agreements 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. The Committee
will aim to minimise the level of payments to that Director, however, 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 a service agreement with Mr Mason on 1 March 2001. 
This agreement replaced all prior arrangements. The Company entered into a service
agreement with Mr Boddie on 25 May 2005.
The Company entered into a service agreement with Mr Lawson as Chairman of 
the Company on 20 July 2001. This agreement replaced all prior arrangements. 
The agreement provided for six months’ notice by the Company and by Mr Lawson. 
His service agreement terminated on 9 October 2006. No compensation for loss of
ofﬁce was paid.
Letters of appointment are provided to the Chairman and Non-Executive Directors
providing for an initial three year term. The Chairman’s letter of appointment 
provides for a six month notice period and the Non-Executive Directors a three 
month notice period. 
External Appointments (not subject to audit)
Executive Directors are permitted to take up one non-executive position on the boards
of other companies, subject to the prior approval of the Board. Any fees payable in
relation to such appointment may be retained by the Executive Director. Neither of 
the Executive Directors held such a position during the ﬁnancial year.
Performance Review (not subject to audit)
The following graph shows the ﬁve year TSR performance of the Company relative to
the FTSE All Share and the FTSE 250 Index. The FTSE All Share is a broad equity market
index of which Electrocomponents is a member and the Company is measuring its 
TSR performance versus the FTSE 250 for the purposes of the L TIP and has therefore
included this as a relevant index. 
Electrocomponents plc Annual Report and Accounts 2007 21
Directors’ Remuneration for the year ended 31 March 2007 (audited)
Salary, Annual Bonus and Other Beneﬁts 
In lieu of In lieu of
Salary Salary Pension Pension Benefits Benefits Bonus Bonus Total Total
2007 2006 2007 2006 2007 2006 2007 2006 2007 2006
£ £ £ £ £ £ £ £ £ £
Emoluments of 
the Chairman
R A Lawson
(a)
105,000 180,000 – – 2 1,809 29,442 – – 126,809 209,442
H Mamsch
(a)
105,000 ––––––– 105,000 –
Emoluments of 
Executive Directors
S Boddie
(b)(c)
333,750 186,66 7 83,305 46,275 14,95 7 8,599 196,645 150,000 628,657 391,541
I Mason
(b)
498,750 482,250 62,256 60,102 23,393 22,408 293,500 75,000 877 ,899 639,760
TOTALS 1,042,500 848,91 7 145,56 1 106,377 60,159 60,449 490,1 45 225,000 1,738,365 1,240,7 43
Fees of Non-Executive 
Directors
K Abbott 13,000 36,000
L Atkinson
(d) 
49,667 46,000
T G Barker
(d) 
49,667 46,000
K Hamill 39,667 36,000
F D Lennertz 16,000 45,000
N J Temple
(d)
49,667 36,000
TOTALS 1,956,033 1,485,7 43
(a) Mr Lawson served as Chairman until 9 October 2006 and Mr Mamsch joined the Company as a Director and Chairman designate on 1 September 2006 before becoming Chairman on 9 October 2006. Until his retirement, Mr Lawson had
use of a company car and mobile phone and received life assurance. 
(b) 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 2007 , Mr Boddie and Mr Mason elected to receive salary
supplements of £83,305 and £62,256 respectively (2006: £46,275 and £60,102) in lieu of the balance pension entitlements. 
(c) Mr Boddie’s 2006 salary relates to the seven months from his appointment on 1 September 2006. 
(d) Dr Atkinson, as Chairman of the Remuneration Committee, and Mr Barker, as Chairman of the Audit Committee, each receive an additional fee of £10,000 per annum. In addition Mr Temple was awarded an ex gratia payment for work
undertaken as Chairman of the Nomination Committee in lieu of Mr Lawson, dealing with the issues surrounding the appointment of Mr Lawson’s successor.
No compensation for loss of ofﬁce was paid during the year ended 31 March 2007 .
Total Shareholder Return (value of £100 invested on 31 March 2002)
Electrocomponents plc
FTSE All Share Index
FTSE 250 Index
0
60
120
180
240
Mar 07 Mar 06 Mar 05 Mar 04 Mar 03 Mar 02 Remuneration Report continued
Share Options (audited)
Shares Shares under 
under option
Date of Vesting Expiration Exercise option Granted in Exercised in Lapsed in 31 March 
Scheme Grant Date Date Price 1 April 2006 FY07 FY07 FY07 2007
Savings 04-Jul-06 01-Sep-09 28-Feb-10 196.0p – 2,862 – – 2,862
Related
S Boddie Long Term 13-Jun-05 12-Jun-08 12-Jun-15 251.0p 400,000 – – – 400,000
Incentive
Option Plan
(a)
Total 400,000 2,862 – – 402,862
I Mason Savings 28-Jun-03 01-Sep-08 28-Feb-09 260.0p 6,125––– 6,125
Related
Long Term 22-Aug-02 2 1-Aug-05 2 1-Aug-12 312.0p 552,300 – – – 552,300
Incentive 16-Jun-03 15-Jun-06 15-Jun- 13 349.0p 545,272–––545,272
Option Plan
(a)
11 -Jun-04 10-Jun-07 10-Jun- 14 365.0p 525,000 – – – 525,000
13-Jun-05 12-Jun-08 12-Jun- 15 251.0p 550,000 – – – 550,000
Total2,178,697–––2,178,697
(a) Awards made under the Long Term Incentive Option Plan are subject to performance conditions set out on pages 19 and 20.
Share Awards (audited)
Shares
Shares Shares awarded at
Date of awarded at awarded in Vested in Lapsed in 31 March 
Notes Scheme Award 1 April 2006 FY07 FY07 FY07 2007
S Boddie (a) Executive 
Incentive 
Plan 1 -Feb-06 400,000 – – – 400,000
(b) Long Term 
Incentive 
Plan 14-Jun-06 – 100,000 – – 100,000
Total 400,000 100,000 – – 500,000
I Mason (a) Executive 
Incentive 
Plan 1 -Feb-06 800,000 – – – 800,000
(b) Long Term 
Incentive 
Plan 14-Jun-06 – 200,000 – – 200,000
Total 800,000 200,000 – – 1,000,000
(a) Awards made under the Executive Incentive Plan are subject to performance conditions and a vesting period set out on page 19.
(b) Awards made under the Long Term Incentive Plan are subject to performance conditions and a vesting period set out on page 19.
The closing mid-market price of the shares on 31 March 2007 was 289.5p. During the year, the price of shares varied between 225p and 304p. The mid market price of the
Company’s shares on 4 July 2006, being the date the Savings Related Options were granted was 231.75p. The mid market price of the Company’s shares on 1 4 June 2006, being
the date the Long Term Incentive Plan awards were made, was 236.75p. 
By Order of the Board
Dr Leslie Atkinson
Chairman of the Remuneration Committee 
30 May 2007
22 Electrocomponents plc Annual Report and Accounts 2007 We have audited the Group and parent Company accounts (the ‘accounts’) of Electrocomponents plc for the year ended 31 March 2007 which comprise the Group Income
Statement, the Group and Parent Company Balance Sheets, the Group Cash Flow Statement, the Group Statement of Recognised Income and Expense and the related notes. 
These accounts have been prepared under the accounting policies set out therein. 
We have also audited the information in the Directors’ 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’ responsibilities for preparing the Annual Report and the Group accounts in accordance with applicable law and International Financial Reporting Standards (IFRSs) 
as adopted by the EU, and for preparing the parent Company accounts and the Directors’ Remuneration Report in accordance with applicable law and UK Accounting Standards 
(UK Generally Accepted Accounting Practice) are set out in the Statement of Directors’ Responsibility on page 18.
Our responsibility is to audit the accounts and the part of the Directors’ Remuneration Report to be audited in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the accounts give a true and fair view and whether the accounts and the part of the Directors’ Remuneration Report to be audited have
been properly prepared in accordance with the Companies Act 1985 and, as regards the Group accounts, Article 4 of the IAS Regulation. 
We also report to you whether in our opinion the information given in the Directors’ Report is consistent with the accounts. The information given in the Directors’ Report includes
speciﬁc information presented in the Business Review section of the Directors’ Report. 
In addition we report to you if, in our opinion, 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 other transactions is not disclosed.
We review whether the Corporate Governance Statement reﬂects the Company’s compliance with the nine provisions of the 2003 Combined Code speciﬁed for our review by the
Listing Rules of the Financial Services Authority, 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 and consider whether it is consistent with the audited accounts. We consider the implications for our report if we
become aware of any apparent misstatements or material inconsistencies with the accounts. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test
basis, of evidence relevant to the amounts and disclosures in the accounts and the part of the Directors’ 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 accounts, and of whether the accounting policies are appropriate to the Group’s and
Company’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 accounts and the part of the Directors’ 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 accounts and the part of the Directors’ Remuneration
Report to be audited.
Opinion
In our opinion:
• the Group accounts give a true and fair view, in accordance with IFRSs as adopted by the EU, of the state of the Group’s affairs as at 31 March 2007 and of its proﬁt for the 
year then ended;
• the Group accounts have been properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation;
• the parent Company accounts give a true and fair view, in accordance with UK Generally Accepted Accounting Practice, of the state of the parent Company’s affairs as at 
31 March 2007;
• the parent Company accounts and the part of the Directors’ Remuneration Report to be audited have been properly prepared in accordance with the Companies Act 1985; and
• the information given in the Directors’ Report is consistent with the accounts.
KPMG Audit Plc
Chartered Accountants
Registered Auditor
8 Salisbury Square
London EC4Y 8BB
30 May 2007
Electrocomponents plc Annual Report and Accounts 2007 23
Independent Auditors’ Report to the Members of Electrocomponents plc Group Income Statement
For the year ended 31 March 2007
24 Electrocomponents plc Annual Report and Accounts 2007
2007 2006
Note £m £m
Revenue 2 877 .5 828.5
Cost of sales (434.0) (402.1)
Gross profit 443.5 426.4
Distribution and marketing expenses (346.2) (348.9)
Administrative expenses (6.2) (9.0)
Operating profit 91.1 68.5
Provision for RoHS 4 – 4.0
Reorganisation (income) costs 5 (0.8) 3.7
Operating profit before reorganisation income/costs and provision for RoHS 90.3 76.2
Financial income
Bank interest receivable 10.7 6.6
Other interest receivable 0.5 0.3
Financial expenses
Bank interest payable (16.9) (10.3)
Other interest payable (0.2) –
Profit before tax 1, 2, 3 85.2 65.1
Profit before tax, reorganisation income/costs and provision for RoHS 84.4 72.8
Income tax expense 9 (29.0) (2 1.5)
Profit for the year attributable to equity shareholders 56.2 43.6
Earnings per share
Basic 11 12.9p 10.0p
Diluted 11 12.9p 10.0p
Dividends
Amounts recognised in the period:
Final dividend for the year ended 31 March 2006 10 12.6p 12.6p
Interim dividend for the year ended 31 March 2007 10 5.8p 5.8p
18.4p 18.4p
A ﬁnal dividend of 1 2.6p per share relating to the period, has been proposed, since the period end.
Group Statement of Recognised Income and Expense
For the year ended 31 March 2007
2007 2006
Note £m £m
Foreign exchange translation differences (11.6) 11.6 
Actuarial (loss) gain on defined benefit pension schemes 8 (0.4) 4.2
Gain (loss) on cash flow hedges 21 1.0 (1.0)
Tax on items taken directly to equity – (1.3)
Net income recognised directly in equity (11.0) 13.5
Profit for the year 56.2 43.6
Total recognised income and expense for the period attributable to the equity shareholders 45.2 57 .1
The notes on pages 29 to 45 form part of these Group accounts. Group Balance Sheet
As at 31 March 2007
2007 2006
Note £m £m
Non-current assets
Intangible assets 12 196.7 208.2
Property, plant and equipment 13 111.1 112.8
Investments 15 0.3 0.3
Other receivables 18 2.7 3.2
Deferred tax assets 22 14.2 17 .5
325.0 342.0
Current assets
Inventories 17 160.6 158.6
Trade and other receivables 18 17 1.0 162.3
Income tax receivables 1.1 1.0
Cash and cash equivalents 28 19.1 39.4
351.8 36 1.3
Current liabilities
Trade and other payables 19 (132.9) (123.5)
Loans and borrowings 20 (79.0) (23.0)
Tax liabilities (14.5) (13.3)
(226.4) (159.8)
Net current assets 125.4 201.5
Total assets less current liabilities 450.4 543.5
Non-current liabilities
Other payables 19 (7 .9) (7 .8)
Retirement benefit obligations 8 (38.7) (41.8)
Loans and borrowings 20 (76.3) (137 .2)
Deferred tax liabilities 22 (22.9) (20.3)
(145.8) (207 .1)
Net assets 304.6 336.4
Equity
Called-up share capital 25 43.5 43.5
Share premium account 26 38.7 38.4
Other reserves 26 222.4 254.5
Equity attributable to the shareholders of the parent 304.6 336.4
These Group accounts were approved by the Board of Directors on 30 May 2007 and signed on its behalf by:
Simon Boddie 
Group Finance Director
The notes on pages 29 to 45 form part of these Group accounts.
Electrocomponents plc Annual Report and Accounts 2007 25 Group Cash Flow Statement
For the year ended 31 March 2007
2007 2006
Note £m £m
Cash flows from operating activities
Profit before tax 85.2 65.1
Depreciation and other amortisation 27 .0 24.1
Equity settled transactions 2.7 2.7
Finance income and expense 5.9 3.4
Operating cash flow before changes in working capital, interest and taxes 120.8 95.3
(Increase) in inventories (7 .7) (12.8)
(Increase) in trade and other receivables (9.2) (14.6)
Increase in trade and other payables – 13.2
Cash generated from operations 103.9 81.1
Interest received 11.2 6.8
Interest paid (1 7 .0) (10.1)
Income tax paid (22.0) (25.8)
Operating cash flow 76.1 52.0
Cash flows from investing activities
Capital expenditure and financial investment (42.4) (26.3)
Proceeds from sale of property, plant and equipment 11.6 1.2
Net cash used in investing activities (30.8) (25.1)
Free cash flow 45.3 26.9
Cash flows from financing activities
Proceeds from the issue of share capital 0.3 –
New bank loans 30.3 54.3
Repayment of bank loans (16.6) (25.6)
Equity dividends paid 10 (80.0) (80.0)
Net cash used in financing activities (66.0) (51.3)
Net decrease in cash and cash equivalents (20.7) (24.4)
Cash and cash equivalents at the beginning of the year 38.0 62.6
Effect of exchange rates on cash (0.1) (0.2)
Cash and cash equivalents at the end of the year 28 17 .2 38.0
The notes on pages 29 to 45 form part of these Group accounts.
26 Electrocomponents plc Annual Report and Accounts 2007 Group Signiﬁcant Accounting Policies
Basis of consolidation 
Electrocomponents plc (the ‘Company’) is a company domiciled in England. The Group
Accounts for the year ended 31 March 2007 comprise the Company and its subsidiaries
(together referred to as the ‘Group’) and the Group’s interest in a jointly controlled entity.
Subsidiaries are entities controlled by the Company. All subsidiary accounts are made 
up to 31 March and are included in the Group Accounts. Further to the IAS Regulation 
(EC 1 606/2002) the Group Accounts have been prepared in accordance with
International Financial Reporting Standards (‘IFRS’) as adopted by the EU (‘adopted
IFRS’). The Company Accounts continue to be prepared in accordance with UK Generally
Accepted Accounting Practice (‘UK GAAP’) and details of the Company Accounts, 
notes to the accounts and principal accounting policies are set out on pages 47 to 52. 
The accounts were authorised for issue by the Directors on 30 May 2007 .
Basis of preparation 
The accounts are presented in £ Sterling and rounded to £0.1m. They are prepared on the
historical cost basis except certain ﬁnancial instruments detailed below.
The preparation of accounts in conformity with IFRS requires management to make
judgements, estimates and assumptions that affect the application of policies and
reported amounts of assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other factors
believed to be reasonable, under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates.
Estimates and judgements
The preparation of accounts requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may differ from these estimates.
The only signiﬁcant judgement made in the accounts for the year ended 3 1 March 2007 ,
surrounds the capitalisation of the Enterprise Business System asset. During the
development of the software, judgements were required as to whether expenditure met the
criteria for capitalisation in IAS 38. By December 2006, the Enterprise Business System was
implemented successfully in Austria, France, Germany, Italy and the UK and since the year
end in the remainder of Continental Europe.
Statement of compliance
The Group Accounts have been prepared in accordance with International Financial
Report Standards (IFRS) as adopted for use by the EU. 
Revenue
Revenue from the sale of goods is recognised in the income statement on despatch
when the signiﬁcant risks and rewards of ownership have been transferred. Revenue
represents the sale of goods and services and is stated net of sales taxes and volume
discounts. Freight recharged to customers is included within revenue. 
Transactions eliminated on consolidation
Intra-group balances and unrealised gains and losses or income and expenses arising
from intra-group transactions, are eliminated in preparing Group Accounts. Unrealised
gains arising from transactions with the jointly controlled entity are eliminated to the
extent of the Group’s interest in the entity. Unrealised losses are eliminated in the same
way as unrealised gains.
Goodwill and other intangibles 
Goodwill arising on all acquisitions prior to 31 March 1998 has been written off against
reserves. Goodwill arising on acquisitions after 1 April 1998 has been capitalised and,
under UK GAAP , was amortised on a straight-line basis over its estimated useful life, with
a maximum of 20 years. 
The Group has made the elective exemption under IFRS 1 that allows goodwill in respect of
acquisitions made prior to 1 April 2004 to remain as stated under UK GAAP . The balance of
goodwill as at 1 April 2004 is deemed to be the cost going forward. 
Goodwill is not amortised under IFRS. Instead the carrying value is reviewed annually
for impairment.
Other intangible assets are stated at cost less accumulated amortisation. 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 at the following annual rates: 
Trademarks 5% 
Computer software costs 1 2.5-50% 
Amortisation is disclosed in distribution and marketing expenses in the income
statement. The residual value, if not insigniﬁcant, is reassessed annually. Expenditure
on internally generated goodwill and brands is recognised in the income statement as
an expense as incurred.
Investments in jointly controlled entities 
The Group Accounts include the Group’s share of the total recognised gains and losses 
in one jointly controlled entity on an equity accounted basis.
Property, plant and equipment
T angible assets are stated at cost less accumulated depreciation. The cost of 
self constructed assets includes the cost of materials, direct labour and certain 
direct overheads.
Leases in which the Group assumes substantially all of the risks and rewards of
ownership are classiﬁed as ﬁnance leases. Each ﬁnance leased asset is stated at an
amount equal to the lower of its fair value and the present value of the minimum lease
payments at the inception of the lease less accumulated 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 and leasehold buildings 2% 
Plant and machinery 10% -20% 
Mainframe computer equipment 20% 
Network computer equipment 33% 
Portable computers 50% 
Other ofﬁce equipment 20% 
Depreciation is disclosed in distribution and marketing expenses in the income
statement. The residual value, if not insigniﬁcant, is reassessed annually.
Impairment
The carrying amounts of the Group’s goodwill are reviewed annually to determine
whether there is any indication of impairment. If such an indication exists, the asset’s
recoverable amount is estimated. 
An impairment loss is recognised whenever the carrying amount of an asset or its cash
generating unit exceeds its recoverable amount. Impairment losses are recognised in the
income statement. The recoverable amount is calculated as the higher of fair value less
cost of sale and value in use, the present value of estimated future cash ﬂows using a
pre tax discount rate that reﬂects current market assessments of the time value of
money and the risks speciﬁc to the asset. For an asset that does not generate largely
independent cash ﬂows, the recoverable amount is determined for the cash generating
unit to which the asset belongs.
Inventories
Inventories are valued at the lower of cost and net realisable value. This cost is
calculated on a weighted average basis. Work in progress and goods for resale include
attributable overheads.
Other receivables
Trade and other receivables are initially measured on the basis of their fair value rather
than cost. Subsequently they are carried at amortised cost using the effective interest
rate method.
Net debt 
Net debt comprises cash and cash equivalents less borrowings. Cash and cash
equivalents comprises cash in hand and held with qualifying ﬁnancial institutions in
current accounts or overnight deposits net of overdrafts with qualifying ﬁnancial
institutions. Cash and cash equivalents 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 ﬁnancial instruments classiﬁed as liabilities.
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 costs and movements in inventory provisions, 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. 
Net ﬁnancing costs comprise interest payable on borrowings calculated using the
effective interest rate method, interest receivable on funds invested, foreign exchange
gains and losses and gains and losses on hedging instruments that are recognised in
the income statement.
Interest income is recognised in the income statement as it accrues, using the effective
interest method. The interest expenses component of ﬁnance lease payments is
recognised in the income statement using the effective interest rate method.
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 as they are
distributed to customers. Major investments in new catalogue production systems 
are capitalised as intangible assets and written off over the period during which the
beneﬁts of those investments are anticipated, such period not to exceed three years.
Operating leases
Operating lease rentals are charged to the income statement 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 income statement on a straight-line basis over the full lease term.
Government grants 
Government grants related to expenditure on property, plant and equipment are
credited to the income statement at the same rate as the depreciation on the asset to
which the grants relate. The unamortised balance of capital grants is included within
trade and other payables.
Electrocomponents plc Annual Report and Accounts 2007 27 Group Signiﬁcant Accounting Policies continued
Employee beneﬁts
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. In addition there are deﬁned beneﬁt pension schemes in Germany and Ireland.
For UK employees who joined after 1 April 2004 the Group provides a deﬁned
contribution pension scheme. There are also deﬁned contribution schemes in Australia
and North America and government schemes in France, Italy, Denmark and North Asia.
Obligations for contributions to deﬁned contribution schemes are recognised as an
expense in the income statement as incurred.
The cost of the deﬁned beneﬁt scheme charged to the income statement comprises:
current service cost, past service cost, expected return on scheme assets and the
interest cost on the expected amount of unwinding of the discount on plan liabilities
within distribution and marketing expenses. The Group has elected to adopt the
amendment to IAS 19 (revised), which allows actuarial gains and losses to be recorded
in the Statement of Recognised Income and Expense immediately. 
Obligations are measured at present value using the projected unit credit method and a
discount rate reﬂecting yields on high quality corporate bonds. Assets are measured at
their fair value at the balance sheet date.
Share-based payment transactions
The Group operates several share-based payment schemes, the largest of which are the
Savings Related Share Option Scheme (SAYE), A US s423 scheme (US employees only),
the Long Term Incentive Option Plan (L TIOP), the Long Term Incentive Plan (L TIP) and
the Executive Incentive Plan (EIP).
The fair value of options granted is recognised as an employee expense with a
corresponding increase in equity and spread over the period during which employees
become unconditionally entitled to the options. The fair values are calculated using an
appropriate option pricing model. The income statement charge is then adjusted to
reﬂect expected and actual levels of vesting based on non market performance related
criteria. The Group’s SAYE scheme has been valued using a Black-Scholes model and the
income statement charge has been adjusted for forfeitures caused by employees failing
to maintain either their employment or the required savings. The Group’s L TIOP scheme
includes performance criteria based on the Group’s total shareholder return performance
relative to a group of 1 3 comparable companies. The fair value of the L TIOP scheme has
been calculated using a Monte Carlo model and the income statement charge has been
adjusted for options forfeited by employees leaving the Group. The EIP includes
performance criteria based on the Group’s proﬁt in the year to March 2009 and has
been valued using a Black-Scholes model. 
Administration expenses include the cost of the share-based payment schemes and
the Group balance sheet includes the assets and liabilities of the schemes. Shares in
the Company, held by the trust established to administer the schemes, are shown
within reserves.
The Group has chosen to adopt the exemption whereby IFRS 2, Share-Based Payment, is
applied only to awards made after 7 November 2002.
Tax
Income tax on the proﬁt or loss for the year comprises current and deferred tax. 
Current tax is the expected tax payable on the taxable income for the year, using tax
rates enacted, or substantively enacted at the balance sheet date, and any adjustment
to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary
differences between the carrying amounts of assets and liabilities for ﬁnancial reporting
purposes and the amounts used for taxation purposes. The amount of deferred tax provided
is calculated using tax rates enacted and substantively enacted at the balance sheet date.
Foreign currency 
Financial statements of foreign operations 
The assets and liabilities of foreign operations, including goodwill and fair value
adjustments arising on consolidation, are translated at foreign exchange rates ruling at
the balance sheet date. The revenues and expenses of foreign operations are translated
at an average rate for the period where this rate approximates to the foreign exchange
rates ruling at the dates of the transactions.
The elective exemption in IFRS 1 means that any translation differences prior to the date of
transition (1 April 2004) do not need to be analysed retrospectively and so the deemed
cumulative translation differences at this date can be set to nil. Thus, any cumulative
translation differences arising prior to the date of transition are excluded from any future
proﬁt/loss on disposal of any entities. The Group adopted this exemption.
Net investment in foreign operations
Exchange differences arising from this translation of foreign operations, and of related
qualifying hedges are taken directly to equity. They are released into the income
statement upon disposal.
Foreign currency transactions
Transactions in foreign currencies are recorded using the rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies at the balance
sheet date are translated at the foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the income statement. Non-monetary 
assets and liabilities that are measured in terms of historical cost in a foreign currency
are translated using the exchange rate at the date of the transaction. Non-monetary
assets and liabilities denominated in foreign currencies that are stated at fair value are
translated at foreign exchange rates ruling at the dates the fair value was determined.
Financial instruments 
Derivative ﬁnancial instruments
The Group uses derivative ﬁnancial instruments to hedge its exposure to foreign
exchange and interest rate risks arising from operational and ﬁnancing activities. It
principally employs forward foreign exchange contracts to hedge against changes in
exchange rates over the catalogue periods of the majority of its operating companies. In
addition there are also a small number of interest rate swaps which swap certain ﬁxed
rate loans into ﬂoating rate. 
In accordance with its treasury policies, the Group does not hold or issue derivative
ﬁnancial instruments for trading purposes. 
Certain derivative ﬁnancial instruments are designated as hedges in line with the Group’s
risk management policies. Hedges are classiﬁed as follows:
Fair value hedges when they hedge the exposure to changes in the fair value of a
recognised asset or liability.
Cash ﬂow hedges when they hedge the exposure to variability in cash ﬂows that is
attributable to a particular risk associated with a forecast transaction.
Net investment hedges when they hedge the exposure to changes in the value of the
Group’s interests in the net assets of foreign operations. 
All the Group’s derivatives have no initial cost. In subsequent periods they are stated in
the balance sheet at fair value. Changes in the fair value of derivative ﬁnancial
instruments that do not qualify for cash ﬂow or net investment hedge accounting are
recognised in the income statement as they arise. 
Cash ﬂow hedge accounting
Where a derivative ﬁnancial instrument is designated as a hedge of the variability in
cash ﬂows of a recognised asset or liability, or a highly probable forecast transaction,
the highly effective part of any gain or loss on the derivative ﬁnancial instrument is
recognised directly in equity. The ineffective part of any gain or loss is recognised
immediately in the income statement. When the forecast transaction subsequently
results in the recognition of a non-ﬁnancial asset or liability the associated cumulative
gain or loss is removed from equity and included in the initial cost of the non-ﬁnancial
asset or liability. When the forecast transaction subsequently results in the recognition
of a ﬁnancial asset or liability, the associated cumulative gain or loss that was
recognised directly in equity is reclassiﬁed into proﬁt or loss in the same period during
which the asset acquired or liability assumed affects proﬁt or loss.
When a hedging instrument expires or is sold, terminated or exercised, or the entity
revokes designation of the hedge relationship but the hedged forecast transaction is
still expected to occur, the cumulative gain or loss at that point remains in equity and is
recognised in accordance with the above policy when the transaction occurs. If the
hedged transaction is no longer expected to take place, the cumulative unrealised gain
or loss recognised in equity is recognised immediately in the income statement.
The fair value of forward foreign exchange contracts is the difference between their
discounted contractual forward price and their current forward price. 
Fair value hedge accounting
The Group uses derivative ﬁnancial instruments to hedge exposure to interest rate risks
arising from ﬁnancing activities, holding a small number of interest rate swaps which
swap certain ﬁxed rate loans into ﬂoating rate. 
The fair value of the interest rate swaps is the market value of the swap at the balance
sheet date, taking into account current interest rates. 
The portion of the gain or loss on an instrument used to hedge a net investment in a
foreign operation that is determined to be an effective hedge is recognised directly in
equity. The ineffective portion is recognised immediately in the income statement.
Hedge of net investment in foreign operations
The portion of the gain or loss on an instrument used to hedge a net investment in a
foreign operation that is determined to be an effective hedge is recognised directly in
equity. The ineffective portion is recognised immediately in the income statement.
Changes in accounting policies
The following standards and interpretations to existing standards that have been enacted
but have no impact on these accounts are:
IFRIC 7 – Applying the restatement approach under IAS 29, Financial reporting in
hyperinﬂationary economies (effective from 1 March 2006);
IFRIC 8 – Scope of IFRS 2 (effective for annual periods beginning on or after 1 May 2006);
IFRIC 9 – Reassessment of embedded derivatives (effective for annual periods
beginning on or after 1 June 2006).
The following standard and interpretations to existing standards that has been endorsed,
but the Group has decided not to early adopt is:
IFRS 7 – Financial instruments: Disclosures, was issued in August 2005, it revised and
enhanced previous disclosures in IAS 32 (Financial Instruments, Disclosure and
Presentation). It is effective for annual periods beginning on or after 1 January 2007 .
This standard has no impact on these accounts. 
28 Electrocomponents plc Annual Report and Accounts 2007 Notes to the Group Accounts
For the year ended 31 March 2007
1 Analysis of income and expenditure
This analysis reconciles the Income Statement presentation to the segmental analysis shown in note 2
2007 2006
£m £m
Revenue 877 .5 828.5
Cost of sales (434.0) (402.1)
Distribution and marketing expenses (251.3) (243.2)
Contribution before Enterprise Business System costs 192.2 183.2
Distribution and marketing expenses within Process costs (74.8) (74.0)
Administrative expenses (8.1) (7 .9)
Group Process costs (82.9) (81.9)
Distribution and marketing expenses: Enterprise Business System costs (19.0) (25.1)
Headline operating profit 90.3 76.2
Net financial expense (5.9) (3.4)
Headline profit before tax 84.4 72.8
Distribution and marketing expenses: Provision for RoHS – (4.0)
Distribution and marketing expenses: Reorganisation costs (1.1) (2.6)
Administrative expenses: Reorganisation income (costs) 1.9 (1.1)
Profit before tax 85.2 65.1
2 Segmental analysis
For management purposes, the Group is managed in regions – United Kingdom, Continental Europe, North America, and Asia Paciﬁc. Continental Europe comprises our trading
operations in France, Germany, Italy, Austria, Denmark, Norway, Sweden, Republic of Ireland, Spain, The Netherlands and Belgium. Asia Paciﬁc comprises our trading operations in
Japan, Australia, Chile, India, New Zealand, Singapore, Malaysia, South Africa, Philipines, Thailand, Hong Kong and China. North America comprises our trading operations in the
United States of America and Canada. These regions are the basis on which the Group reports its primary segment information. The Group has only one type of business and does
not therefore have separately identiﬁable business segments. No secondary segment information is therefore given.
Intersegment pricing is determined on an arms’ length basis.
2007 2006
£m £m
By geographical destination
Revenue: United Kingdom 341.5 339.9
Continental Europe 293.3 272.5
North America 155.6 135.9
Asia Pacific 87 .1 80.2
877 .5 828.5
2007 2006
Inter- Inter-
Total segment Total segment
sales sales Revenue sales sales Revenue
£m £m £m £m £m £m
By geographical origin
Revenue: United Kingdom 495.3 (139.1) 356.2 46 1.8 (108.2) 353.6
Continental Europe 294.9 (7 .4) 287 .5 274.2 (6.3) 267 .9
North America 159.2 (2.0) 157 .2 138.1 (0.6) 137 .5
Asia Pacific 76.9 (0.3) 76.6 7 1.8 (2.3) 69.5
1,026.3 (148.8) 877 .5 945.9 (11 7 .4) 828.5
2007 2006
£m £m
Profit before tax: United Kingdom 95.9 96.9
Continental Europe 64.5 59.9
North America 23.4 19.2
Asia Pacific 8.4 7.2
Contribution before Enterprise Business System costs 192.2 183.2
Groupwide Process costs (82.9) (81.9)
Enterprise Business System costs (19.0) (25.1)
Net financial expense (5.9) (3.4)
Headline profit before tax, 84.4 72.8
Provision for RoHS – (4.0)
Reorganisation income (costs) 0.8 (3.7)
85.2 65.1
Electrocomponents plc Annual Report and Accounts 2007 29 Notes to the Group Accounts continued
2 Segmental analysis continued
2007 2006
£m £m
By geographical location
Total assets: United Kingdom 264.0 270.4
Continental Europe 136.7 132.4
North America 195.6 199.9
Asia Pacific 46.1 42.7
Total assets 642.4 645.4
Unallocated assets
cash and cash equivalents 19.1 39.4
deferred tax asset 14.2 17 .5
corporation tax asset 1.1 1.0
676.8 703.3
Total liabilities: United Kingdom 110.8 107 .6
Continental Europe 46.7 46.1
North America 14.0 11.1
Asia Pacific 8.0 8.3
Total liabilities 1 79.5 17 3.1
Unallocated liabilities
corporation tax 14.5 13.3
deferred tax liability 22.9 20.3
loans and overdrafts 155.3 160.2
372.2 366.9
Capital expenditure: United Kingdom 21.8 23.9
Continental Europe 5.6 1.4
North America 15.1 4.1
Asia Pacific 2.3 1.0
44.8 30.4
Depreciation and United Kingdom 20.2 16.0
amortisation: Continental Europe 3.5 3.7
North America 1.0 1.0
Asia Pacific 2.3 2.5
27 .0 23.2
Significant non-cash United Kingdom 2.2 2.2
expenses: Continental Europe 0.2 0.3
North America 0.1 0.1
Asia Pacific 0.2 0.1
2.7 2.7
30 Electrocomponents plc Annual Report and Accounts 2007 3 Proﬁt before tax
2007 2006
£m £m
Profit before tax is stated after charging (crediting):
Remuneration of the auditors and their associates:
group audit fee 0.3 0.2
the audit of subsidiaries pursuant to legislation 0.4 0.4
other services pursuant to legislation 0.1 0.1
taxation 0.1 0.2
all other services 0.2 –
Depreciation 15.5 16.5
Amortisation of intangibles 11.5 6.7
Amortisation of government grants (0.2) (0.3)
Loss on disposal of intangibles 1.1 0.7
(Profit) loss on disposal of plant, property and equipment (1.9) 0.5
Hire of plant and machinery 3.3 5.3
Net foreign exchange losses – 0.1
4 Provision for RoHS
RoHS (Restriction of Hazardous Substances) is an EU Directive that restricts the use of six hazardous materials in the manufacture of electronic and electrical equipment. 
The legislation came into force on 1 July 2006. The RoHS regulations prevent the use of non-compliant products in manufacture. It is still acceptable to use non-compliant 
products for maintenance.
No charge was required in the year 2007 (2006: £4.0m).
5 Reorganisation costs
Reorganisation costs arising in the year are as follows:
2007 2006
£m £m
Redundancy costs 1.1 3.2
Profit on sale of former head office (1.9) –
Other initiatives – 0.5
(0.8) 3.7
6Employees
Numbers employed
2007 2006
The average number of employees during the year was:
Management and administration 294 31 4
Distribution and marketing 5,157 4,892
5,451 5,206
Of these staff 2,365 were employed in the United Kingdom (2006: 2,447).
Aggregate employment costs
£m £m
Wages and salaries 136.2 13 1.9
Social security costs 15.9 15.4
Equity-settled transactions 2.7 2.7
Pension costs 11.8 12.9
166.6 162.9
The remuneration of individual Directors is detailed on page 2 1.
Electrocomponents plc Annual Report and Accounts 2007 31 Notes to the Group Accounts continued
7 Share-based payments
The Group has a number of share-based incentive plans for employees. These comprise an Executive Incentive Plan (EIP) awarded to the Group’s most senior executives, a Long
Term Incentive Plan (L TIP) awarded to senior managers employees, a Save As You Earn (SAYE) scheme that is made available to the majority of employees and a US s423 option
scheme that is offered to all permanent employees in the US operating company. In addition there was a Long Term Incentive Option Plan (L TIOP) operated until 2005, awarding
options to senior managers.
The L TIOP and SAYE schemes were in operation before 7 November 2002 in addition to a pre-existing Long Term Incentive Plan. The recognition and measurement principles in 
IFRS 2 have only been applied to grants made, under all these schemes, after 7 November 2002 in accordance with the transitional provisions in IFRS 1 and IFRS 2.
Executive Incentive Plan (EIP)
The EIP scheme is a one-off conditional award on 1 February 2006 of shares to the 1 2 most senior executives in the Group to be delivered following the ﬁnancial year ending 31
March 2009. The number of shares to be awarded is dependent on the performance of the Group during the year ending 31 March 2009 varying between 0 and 2,700,000. The
awards include a right to receive dividend equivalents on vesting. Awards over 450,000 of these shares were made for cash settlement. The fair value of the EIP options was
calculated using a Black-Scholes model based on the assumptions below.
EIP
2006
Fair value at grant date 300p
Assumptions used
Share price 300p
Expected volatility 39.7%
Expected option life 3.25 years
Risk free interest rate 4.4%
Volatility was estimated based on the historical volatility of the shares over a three year period up to the date of grant.
Long Term Incentive Option Plan (LTIOP) and Long Term Incentive Plan (LTIP)
The L TIOP schemes were awarded to key senior employees at a grant price equal to the Group’s share price. The vesting conditions include a continuation of service, a minimum of
three years, and the performance of the Group’s shares against a comparator group. The share price is tested against this group after three years and can be retested after four
and ﬁve years if the options have not vested. The proportion of the options vesting is also dependent on the comparative share performance. The share options can be exercised
up to 10 years after the grant date. Any options remaining unexercised after 10 years from the date of grant will expire.
The fair value of the L TIOP and L TIP options was calculated at the grant date using a Monte Carlo model based on the assumptions below.
In June 2006 a new Executive Plan (the Long Term Incentive Plan ‘L TIP’) conditional award of shares was made. The vesting conditions are based on performance of the Group
versus the FTSE 250 over the three year life of the scheme. At the vesting date the share award will either vest or lapse. The awards include a right to receive dividend equivalents
on vesting. The fair value was calculated at the grant date using a Monte Carlo model based on the assumptions below.
LTIP LTIOP L TIOP LTIOP
2006 2005 2004 2003
Options granted 1,542,118 5,264,667 4,959,435 6,452,956
Fair value at grant date 111.0p 35.6p 78.6p 78.3p
Assumptions used
Share price 237p 249p 369p 349p
Exercise price Nil 251p 365p 349p
Expected volatility 24.9% 34.9% 39.7% 39.7%
Expected option life 3 years 7 years 7 years 7 years
Expected dividend yield 7 .0% 6.2% 4.9% 5.9%
Risk free interest rate 4.7% 4.1% 5.0% 5.0%
Volatility was estimated based on the historical volatility of the shares over a three year period up to the date of grant.
Save as You Earn (SAYE) schemes
The SAYE schemes are available to the majority of employees of the Group. They provide an option price equal to the daily average market price at the date of the offer less 20%. 
(The French scheme may be offered at a different rate to ensure compliance with French regulations.) The option exercise conditions are the employee’s continued employment 
for the three or ﬁve year period and the maintenance of the employee’s regular monthly savings in an account. Failure of either of these conditions is deemed a forfeiture of the
option. At the end of the period the employee has six months to either purchase the shares at the agreed price, or withdraw their savings with the accrued interest. There are no
market conditions to the vesting of the options.
There have been 16 SAYE grants since 7 November 2002. Four were awarded on 4 July 2006, four were awarded on 24 June 2005, four were awarded on 30 June 2004 and 
a further four on 30 June 2003. The options granted, the fair value calculated using a Black-Scholes model, and the assumptions used, are shown below
SAYE 3 yr SAYE 5 yr SAYE 3 yr SAYE 5 yr SAYE 3 yr SAYE 5 yr SAYE 3 yr SAYE 5 yr
2006 2006 2005 2005 2004 2004 2003 2003
Options granted 832,027 510,502 1,105,515 795,833 386,423 291,856 1,454,116 1,241,553
Fair value at grant date 42.7p 51.0p 55.2p 58.3p 107 .2p 126.8p 106.6p 128.0p
Assumptions used
Share price 232p 232p 247p 247p 357p 357p 325p 325p
Exercise price 196p 196p 2 12p 2 12p 283p 283p 260p 260p
Expected volatility 26.9% 33.6% 34.8% 35.7% 38.4% 38.4% 39.7% 41.9%
Expected option life 3 years 5 years 3 years 5 years 3 years 5 years 3 years 5 years
Expected dividend yield 7 .1% 7 .1% 6.3% 6.3% 4.9% 4.9% 5.9% 5.9%
Risk free interest rate 4.8% 4.8% 4.1% 4.1% 5.0% 5.0% 5.0% 5.0%
French awards have the following differences to the above awards
Options granted 2,298 29,790 10,384 25,2 10 6,434 15,502 11,139 38,910
Fair value at date of grant 42.7p 51.0p 55.2p 58.3p 103.4p 123.6p 101.4p 123.9p
Exercise price 196p 196p 2 12p 2 12p 292p 292p 272p 272p
Volatility was estimated based on the historical volatility of the shares over a three or ﬁve year period, as appropriate, up to the date of grant.
32 Electrocomponents plc Annual Report and Accounts 2007 7 Share-based payments continued
US s423 scheme
The US s423 scheme is available to permanent employees of Allied, the Group’s US operating company. The options are granted to those who elect to participate and the scheme
has a savings element similar to the SAYE scheme. At the end of one year up to 20% of the options can be exercised with the remainder exercisable after two years. The option price
is the lesser of 85% of the market value of the shares on the date of grant and the date of exercise. There are no market conditions to the vesting of the options.
The fair value of the options was calculated at the grant date using a Black-Scholes model and the assumptions used are shown below.
s423 s423 s423
2006 2005 2004
Options granted 12,370 15,496 6,233
Fair value at grant date 39.1p 47 .5p 82.0p
Assumptions used
Share price 232p 247p 370p
Exercise price 197p 207p 296p
Expected volatility 24.0% 28.4% 39.0%
Expected option life 2 years 2 years 2 years
Expected dividend yield 6.8% 6.3% 5.4%
Risk free interest rate 4.8% 4.1% 5.0%
Number and weighted average exercise prices of share options
Weighted Weighted 
average average
exercise Number of exercise Number of 
price options price options
In thousands of options 2007 2007 2006 2006
Outstanding at the beginning of the year 291p 26,1 22 354p 2 1,693
Forfeited during the year 334p (3,205) 311p (4,46 1)
Lapsed during the year 254p (1,651) 413p (1,009)
Exercised during the year 252p (88) 201p (18)
Granted during the year 93p 2,929 17 5p 9,9 17
Outstanding at the end of the year 264p 24,107 291p 26,1 22
Exercisable at the end of the year 339p 37 351p 268
Outstanding options include 7 ,570,4 11 options relating to schemes in operation before 7 November 2002.
The options outstanding at 31 March 2007 have an exercise price in the range 0p to 686p and a weighted average contractual life of 7 .9 years.
2007 2006
£m £m
Option Prices
£nil-£1.00 4,233 2,700
£1.00-£2.00 1,246 –
£2.00-£3.00 5,936 8,016
£3.00-£4.00 11,1 29 13,42 1
£4.00-£5.00 538 850
£5.00-£6.00 71 3 794
£6.00-£7 .00 31 2 341
24,107 26,1 22
Employee expenses
2007 2006
£m £m
Share options granted in 2003/04 0.2 1.2
Share options granted in 2004/05 0.7 0.9
Share options granted in 2005/06 1.2 0.6
Share options granted in 2006/07 0.6 –
Total expense recognised as employee costs 2.7 2.7
Electrocomponents plc Annual Report and Accounts 2007 33 Notes to the Group Accounts continued
8Pension 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
2007 amounted to £5.2m (2006: £7 .6m). The contributions paid by the Group to the deﬁned contribution section of the scheme amounted to £2.2m (2006: £1.2m).
In addition to the UK scheme outlined above there are certain pension beneﬁts provided on a deﬁned beneﬁt basis in Germany and Ireland amounting to £1.1m (2006: £1.0m),
deﬁned contribution basis in Australia and North America amounting to £0.9m (2006: £0.8m), and via government schemes in France, Italy, Scandinavia and North Asia
amounting to £2.4m (2006: £2.0m).
The rules of the Electrocomponents Group Pension Scheme give the Trustees powers to wind up the Scheme in certain limited circumstances. However, the Trustee has conﬁrmed
that it has no current intention of exercising its power to wind up the Scheme.
The Group expects to pay £9.4m to its UK deﬁned beneﬁt pension plan in 2008.
The principal assumptions used in the valuations of the liabilities of the Group’s schemes were:
2007 2006
United Republic United Republic
Kingdom Germany of Ireland Kingdom Germany of Ireland
Discount rate 5.25% 4.75% 4.75% 4.90% 4.50% 4.50%
Rate of increase in salaries 3.85% 3.00% 4.00% 3.90% 3.00% 4.00%
Rate of increase of pensions in payment 3.10% 2.00% 2.00% 2.90% 2.00% 2.00%
Inflation assumption 3.10% 2.00% 2.00% 2.90% 2.00% 2.00%
The expected long term rates of return on the schemes’ assets as at 31 March were:
2007 2006
United Republic United Republic
Kingdom Germany of Ireland Kingdom Germany of Ireland
Equities 7 .40% n/a 7 .30% 7 .05% n/a 7 .00%
Corporate bonds 4.50% n/a n/a 4.15% n/a n/a
Government bonds 3.90% n/a 4.30% 3.55% n/a 4.00%
Cash 4.50% n/a n/a 3.75% n/a n/a
Other n/a n/a 5.30% n/a n/a 5.00%
The expected return for each asset class is based on a combination of historical performance analysis, the forward looking views of the ﬁnancial markets (as suggested by
available yields) and the views of investment organisations.
Based upon the demographics of scheme members, the weighted average life expectancy assumptions used to determine beneﬁt obligations were:
2007
United Republic
Kingdom Germany of Ireland
Years Years Years
Member aged 65 (current life expectancy) – male 20.2 18.4 2 1.4
Member aged 65 (current life expectancy) – female 23.1 22.5 26.4
Member aged 45 (life expectancy at aged 65) – male 21.2 21.8 21.4
Member aged 45 (life expectancy at aged 65) – female 24.0 25.7 26.4
The amounts recognised in the income statement were:
2007 2006
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 6.9 0.7 0.1 7 .7 7 .1 0.7 0.1 7 .9
Past service cost –––– ––––
Interest cost 14.2 0.3 0.1 14.6 13.1 0.2 0.1 13.4
Expected return on assets (15.9) – (0.1) (16.0) (12.6) – (0.1) (12.7)
Total income statement charge 5.2 1.0 0.1 6.3 7 .6 0.9 0.1 8.6
Of the charge for the year, £0.3m (2006: £0.4m) has been included in administrative expenses and the remainder £6.0m (2006: £8.2m) in distribution and marketing expenses.
The actual return on scheme assets was: UK £1 4.4m (2006: £48.7m), Germany £nil (2006: £nil) and Republic of Ireland £0.2m (2006: £0.4m).
The valuations of the assets of the schemes as at 31 March were:
2007 2006
United Republic United Republic
Kingdom Germany of Ireland Kingdom Germany of Ireland
£m £m £m £m £m £m
Equities 203.7 n/a 1.6 189.9 n/a 1.4
Corporate bonds 24.0 n/a – 22.6 n/a –
Government bonds 41.6 n/a 0.2 39.7 n/a 0.2
Cash 2.6 n/a – 1.5 n/a –
Other – n/a 0.2 – n/a 0.2
Total market value of assets 27 1.9 – 2.0 253.7 – 1.8
No amount is included in the market value of assets relating to either ﬁnancial instruments or property occupied by the Group.
34 Electrocomponents plc Annual Report and Accounts 2007 8Pension Schemes continued
The amount included in the balance sheet arising from the Group’s obligations in respect of its deﬁned beneﬁt pension schemes is:
2007 2006
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 27 1.9 – 2.0 273.9 253.7 – 1.8 255.5
Present value of scheme liabilities (303.8) (6.5) (2.3) (312.6) (288.7) (6.3) (2.3) (297 .3)
Deficit in the scheme (31.9) (6.5) (0.3) (38.7) (35.0) (6.3) (0.5) (41.8)
The rules of the UK Electrocomponents Group Pension Scheme give the Trustee powers to wind up the Scheme, which it may exercise if the Trustee is aware that the assets of the
Scheme are insufﬁcient to meet its liabilities. Although the Scheme is currently in deﬁcit, the Trustee and the Company have agreed a plan to eliminate the deﬁcit over time and 
the Trustee has conﬁrmed that it has no current intention of exercising its power to wind up the Scheme.
The German scheme is unfunded, in line with local practice, and the deﬁcit of £6.5m in the German scheme is ﬁnanced through accruals established within the German accounts.
In addition, the value of the assets and liabilities held in respect of AVCs amounted to £1.0m as at 31 March 2007 (2006: £1.0m).
The value of the assets and liabilities held in respect of the deﬁned contribution section of the UK Scheme amounted to £5.5m as at 31 March 2007 (2006: £2.8m).
The movement in present value of the deﬁned beneﬁt obligations in the current period was:
United Republic United Republic
Kingdom Germany of Ireland Total Kingdom Germany of Ireland Total
2007 2007 2007 2007 2006 2006 2006 2006
£m £m £m £m £m £m £m £m
Present value of the defined benefit
obligations at the beginning of the year 288.7 6.3 2.3 297 .3 239.3 5.3 1.7 246.3
Movement in year:
Current service cost 6.9 0.7 0.1 7 .7 7 .1 0.7 0.1 7 .9
Interest cost 14.2 0.3 0.1 14.6 13.1 0.2 0.1 13.4
Contributions from scheme members 2.4 – – 2.4 2.7 – – 2.7
Insurance premiums paid – (0.1) – (0.1) – (0.1) – (0.1)
Actuarial (gain) loss (0.5) (0.4) (0.2) (1.1) 31.9 – 0.3 32.2
Benefits paid (7 .9) (0.1) – (8.0) (5.4) (0.1) – (5.5)
Exchange differences – (0.2) – (0.2) – 0.3 0.1 0.4
Present value of the defined benefit 
obligations at the end of the year 303.8 6.5 2.3 312.6 288.7 6.3 2.3 297 .3
The movement in present value of the fair value of scheme assets in the current period was:
United Republic United Republic
Kingdom Germany of Ireland Total Kingdom Germany of Ireland Total
2007 2007 2007 2007 2006 2006 2006 2006
£m £m £m £m £m £m £m £m
Present value of fair value of scheme assets 
at the beginning of the year 253.7 – 1.8 255.5 198.0 – 1.3 199.3
Movement in year:
Expected return on scheme assets 15.9 – 0.1 16.0 12.6 – 0.1 12.7
Actuarial (loss)/gain (1.5) – – (1.5) 36.1 – 0.3 36.4
Contributions by Company 9.3 0.1 0.1 9.5 9.7 0.1 0.1 9.9
Contributions from scheme members 2.4 – – 2.4 2.7 – – 2.7
Insurance premiums paid – (0.1) – (0.1) – (0.1) – (0.1)
Benefits paid (7 .9) (0.1) – (8.0) (5.4) (0.1) – (5.5)
Exchange differences – 0.1 – 0.1 –0.1 –0.1
Present value of fair value of scheme 
assets at the end of the year 27 1.9 – 2.0 273.9 253.7 – 1.8 255.5
Experience adjustments were:
2007 2006
United Republic United Republic
Kingdom Germany of Ireland Kingdom Germany of Ireland
%%% %%%
Difference between expected and actual return on plan assets (0.6%) n/a (2.3%) 14.2% n/a 14.4%
Experience (gains) losses on plan liabilities 0.3% (0.9%) (2.5%) 0.0% (0.3%) (0.4%)
The cumulative amount of actuarial gains recognised is £4.3m (2006: £4.7m).
Electrocomponents plc Annual Report and Accounts 2007 35 Notes to the Group Accounts continued
9 Income tax expense
2007 2006
Taxation on the profit of the Group £m £m
United Kingdom corporation tax at 30% (2006: 30%) 19.4 16.9
United Kingdom deferred taxation 1.1 (1.1)
Double tax relief (8.8) (7 .0)
11.7 8.8
Overseas taxation – current 12.4 11.4
Overseas taxation – deferred 4.9 1.3
Total income tax expense in Income Statement 29.0 21.5
Total tax expense is reconciled to a notional 30% (2006: 30%) of profit before taxation as follows:
Expected tax charge 25.6 19.5
Differences in overseas corporation tax rates 2.0 2.0
Creation of tax losses 0.7 0.4
Items not (deductible) chargeable for tax purposes (0.1) 0.3
Other local taxes suffered overseas 0.5 0.7
Non-taxable income (1.5) (0.1)
Under (over) provision in prior years 1.8 (1.3)
29.0 21.5
Deferred tax recognised directly in equity
Relating to equity settled transactions 0.3 –
Relating to actuarial (losses) gains (0.3) 1.3
– 1.3
10 Dividends
2007 2006
£m £m
Amounts recognised in the period:
Final dividend for the year ended 31 March 2006 – 12.6p (2005: 12.6p) 54.8 54.8
Interim dividend for the year ended 31 March 2007 – 5.8p (2006: 5.8p) 25.2 25.2
80.0 80.0
Proposed dividend for the year ended 31 March 2007 – 12.6p 54.8
The proposed ﬁnal dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these accounts.
11 Earnings per share
2007 2006
£m £m
Profit for the year attributable to the equity shareholders 56.2 43.6
Provision for RoHS – 4.0
Reorganisation (income) costs (0.8) 3.7
Tax impact of reorganisation and provision for RoHS 0.2 (2.4)
Headline profit for the year attributable to equity shareholders 55.6 48.9
Weighted average number of shares 434,949,638 434,920,01 7
Dilutive effect of share options 1,462,381 335,031
Diluted weighted average number of shares 436,412,019 435,255,048
pence pence
Basic earnings per share 12.9 10.0
Diluted earnings per share 12.9 10.0
Headline basic earnings per share 12.8 11.2
Headline diluted earnings per share 12.7 11.2
A further 1 2,94 1,763 share options were outstanding as at 31 March 2007 (2006: 16,686,609) but were not included as they were anti-dilutive.
36 Electrocomponents plc Annual Report and Accounts 2007 12 Intangible assets
Other
Goodwill Software Intangibles Total
Cost £m £m £m £m
At 1 April 2005 138.4 74.2 0.3 2 12.9
External additions –12.1 – 12.1
Disposals – (1.8) – (1.8)
Translation differences 12.0 0.6 – 12.6
At 1 April 2006 150.4 85.1 0.3 235.8
External additions – 20.0 – 20.0
Disposals – (2.2) – (2.2)
Translation differences (16.8) (1.0) – (1 7 .8)
At 31 March 2007 133.6 101.9 0.3 235.8
Amortisation
At 1 April 2005 – 21.0 – 2 1.0
Charged in the year –6.7 –6.7
Disposals – (0.5) – (0.5)
Translation differences – 0.4 – 0.4
At 1 April 2006 – 27 .6 – 27 .6
Charged in the year –11.5 – 11.5
Disposals ––––
Translation differences ––––
At 31 March 2007 –39.1 – 39.1
Net book value
At 31 March 2007 133.6 62.8 0.3 196.7
At 31 March 2006 150.4 57 .5 0.3 208.2
At 31 March 2005 138.4 53.2 0.3 191.9
The recoverable amount of goodwill is based on value in use calculations. Those calculations use cash ﬂow projections based on actual operating results and management
projections for a further six years. Cash ﬂows for further periods are extrapolated using a growth rate of 2% (2006: 2%) which is appropriate for the long-term nature of the
business. A pre-tax discount rate of 9% (2006: 9%) has been used in discounting the projected cash ﬂows.
A period of more than ﬁve years has been used as the directors believe this is a reasonable assumption based on the fact that the investments are all held for the long term. For
periods after ﬁve years, extrapolations have been applied from the earlier budgets and forecasts, after assessing the reasonableness of the assumptions by examining the causes
of differences between past cash ﬂow projections and actual cash ﬂows.
The key assumption used is the sales growth rate. This is based upon historical growth rates and future plans in the medium term. Long-term growth rates are based upon
expected GDP growth, in line with IFRS 36: Impairment of Assets, rather than management expectations.
The recoverable amount of the unit exceeds its carrying value and the carrying value of the goodwill is therefore not impaired.
Electrocomponents plc Annual Report and Accounts 2007 37 Notes to the Group Accounts continued
13 Property, plant and equipment
Land and Plant and Computer
buildings machinery systems Total
Cost £m £m £m £m
At 1 April 2005 92.6 100.4 50.9 243.9
Additions 3.7 2.7 11.9 18.3
Disposals (0.5) (1.4) (5.3) (7 .2)
Reclassification – (1.0) 1.0 –
Translation differences 1.0 0.9 0.6 2.5
At 1 April 2006 96.8 101.6 59.1 257 .5
Additions 10.6 7 .0 7 .2 24.8
Disposals (9.9) (1.6) (2.2) (13.7)
Reclassification – 1.8 (1.8) –
Translation differences (1.7) (1.4) (0.9) (4.0)
At 31 March 2007 95.8 107 .4 6 1.4 264.6
Depreciation
At 1 April 2005 2 1.1 73.1 38.8 133.0
Charged in the year 1.7 7 .0 7 .8 16.5
Disposals (0.4) (1.3) (4.4) (6.1)
Reclassification ––––
Translation differences 0.2 0.7 0.4 1.3
At 1 April 2006 22.6 79.5 42.6 144.7
Charged in the year 1.5 6.5 7 .5 15.5
Disposals (1.2) (1.4) (2.2) (4.8)
Reclassification – 1.6 (1.6) –
Translation differences (0.2) (1.0) (0.7) (1.9)
At 31 March 2007 22.7 85.2 45.6 153.5
Net book value
At 31 March 2007 73.1 22.2 15.8 111.1
At 31 March 2006 74.2 22.1 16.5 112.8
At 31 March 2005 7 1.5 27 .3 12.1 110.9
2007 2006
Net book value of land and buildings £m £m
Freehold land 11.1 13.2
Freehold buildings 58.5 58.0
Long leasehold buildings 1.1 0.4
Short leasehold buildings 2.4 2.6
73.1 74.2
Net book value of plant and machinery
Plant and machinery 19.8 19.1
Other office equipment 1.5 2.1
Motor vehicles 0.9 0.9
22.2 22.1
All classes of assets are depreciated except for freehold land.
14 Capital commitments
2007 2006
£m £m
Contracted capital expenditure at 31 March, for which no provision has been made in these accounts 4.4 7. 1
15 Investments
2007 2006
£m £m
Jointly controlled entities 0.3 0.3
0.3 0.3
38 Electrocomponents plc Annual Report and Accounts 2007 16 Principal subsidiary undertakings and associated undertakings
Country of
Principal location 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 Components 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
RS Components Company Ltd* Bangkok Thailand
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 by Electrocomponents plc. 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, T aiwan, and the Philippines. RS Components Limited also operates under the names of RS Calibration, RS Mechanical and RS Health & Safety in the United Kingdom.
† 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 2007 the Group made sales
of £0.8m (2006: £0.6m) to RSCC and supplied catalogues at a cost to RSCC of £0.1m (2006: £0.1m). RSCC is treated in the accounts as an associated undertaking.
1 7 Inventories
2007 2006
£m £m
Raw materials and consumables 10.4 7. 4
Finished goods and goods for resale 150.2 15 1.2
160.6 158.6
During the year the provision for obsolete stock was not increased. In 2006 the provision was increased by £4.0m as a result of the RoHS Directive (see note 4).
18 Trade and other receivables
2007 2006
£m £m
Gross trade debtors 154.8 146.2
Provision for doubtful debts (3.5) (3.3)
Amounts owed by jointly controlled entities 0.4 0.3
Derivative assets 2.0 0.6
Other debtors 3.6 3.3
Prepaid catalogue expenses 7.2 7.2
Other prepayments and accrued income 6.5 8.0
Trade and other receivables falling due within one year 17 1.0 162.3
Corporate tax 0.2 0.2
Prepaid leases – 1.9
Derivative assets – 0.3
Other debtors 2.5 0.8
Other receivables falling due after more than one year 2.7 3.2
Electrocomponents plc Annual Report and Accounts 2007 39 Notes to the Group Accounts continued
19 Trade and other payables
2007 2006
£m £m
Trade creditors 82.8 77 .5
Other taxation and social security 9.6 8.9
Derivative liabilities 1.1 1.0
Other creditors 4.6 5.2
Government grants 0.2 0.3
Accruals and deferred income 34.6 30.6
Trade and other payables due within one year 132.9 123.5
Other creditors 3.5 3.3
Government grants 4.4 4.5
Other payables due in more than one year 7.9 7.8
20 Interest-bearing loans and borrowings
2007 2006
£m £m
Non-current liabilities:
Unsecured bank facility 70.2 128.4
Secured bank loan 2.5 3.1
Unsecured bank loans 3.4 3.9
Finance lease liabilities 0.2 1.8
76.3 13 7 .2
Current liabilities
Unsecured bank facility 51.1 –
Unsecured overdraft 1.9 1.4
Secured bank loan 0.6 0.6
Unsecured bank loans 23.1 17 .7
Finance lease liabilities 2.3 3.3
79.0 23.0
Borrowings are repayable as follows:
Amounts falling due on demand or in less than one year 79.0 23.0
In more than one but not more than two years 0.8 59.7
In more than two but not more than three years 70.8 0.8
In more than three but not more than four years 4.1 71.5
In more than four but not more than five years 0.6 4.6
In more than five years – 0.6
155.3 160.2
Borrowings are analysed by currency as:
Total Sterling US Dollars Euro Japanese Yen Other
2007 2007 2007 2007 2007 2007
£m £m £m £m £m £m
Bank overdrafts 1.9 0.7 0.2 – 0.2 0.8
Unsecured bank facility 12 1.3 – 51.1 37 .4 26.0 6.8
Secured bank loan 3.1–– 3.1––
Unsecured bank loan 26.5 7 .1 1.3 – 5.7 12.4
Finance lease liabilities 2.5 2.5 ––––
Total borrowings 155.3 10.3 52.6 40.5 31.9 20.0
Total Sterling US Dollars Euro Japanese Yen Other
2006 2006 2006 2006 2006 2006
£m £m £m £m £m £m
Bank overdrafts 1.4 0.2 – – – 1.2
Unsecured bank facility 128.4 – 57 .5 35.0 28.8 7 .1
Unsecured bank loan 2 1.6 – 3.8 – 6.1 11.7
Secured bank loan 3.7 – – 3.7 – –
Finance lease liabilities 5.1 5.1––––
Total borrowings 160.2 5.3 6 1.3 38.7 34.9 20.0
40 Electrocomponents plc Annual Report and Accounts 2007 2 1 Financial instruments
Exposure to credit, interest rate and currency risks arises in the normal course of the Group’s business. Derivative ﬁnancial instruments are used to hedge exposure to
ﬂuctuations in foreign exchange rates and interest rates. All ﬁnancial instruments are accounted for on trade date.
Credit risk
Credit risk arises because a counterparty may fail to perform its obligations. The Group is exposed to credit risk on ﬁnancial assets, such as cash balances, derivative instruments,
trade and other receivables.
The Group’s credit risk is primarily attributable to its trade receivables.
All operating companies have credit policies and monitor their credit exposure on an ongoing basis. Each operating company performs credit evaluations on all customers seeking
credit over a certain amount. For countries with no local operating company presence export credit limits are set and monitored on a country basis. Trading receivables are stated
net of allowances for doubtful receivables, estimated by local management based on prior experience and assessment of their current economic environment. The average credit
period taken by customers is 54 days (2006: 54 days).
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 identiﬁes
counterparties of suitable creditworthiness based on ratings assigned by international credit-rating agencies and has procedures to ensure that only these parties are used, that
exposure limits are set based on the external credit ratings, and that these limits are not exceeded.
The amounts in the balance sheet represent the maximum credit risk exposure at the balance sheet date. There were no signiﬁcant concentrations of credit risk at the balance
sheet date, as exposure is spread over a large number of counterparties and customers.
Interest rate risk
Interest rate risk comprises both the interest rate price risk that results from borrowing at ﬁxed rates of interest and also the interest cash ﬂow risk that results from borrowing at
variable rates, where appropriate interest rate swaps are used to manage the Group’s principal interest rate risk policy. The Group adopts a policy of paying and receiving interest
on a variable interest rate basis, as in the opinion of the Group this minimises interest cost over time. Multi-currency 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 to liquidity and interest costs. This policy is subject to regular monitoring
of the effect of potential changes in interest rates on its interest cost with a view to taking suitable actions should exposure reach certain levels.
Two interest rate swaps have been entered into in order to achieve this policy. The swaps mature over the next ﬁve years following the maturity of the related loans, one of which 
is amortising, and have ﬁxed swap rates of 1.15% and 3.85%. At 31 March 2007 the Group had interest rate swaps with notional contract amounts of JPY 800m and EUR 4.5m
(2006: JPY 800m and EUR 5.4m).
The Group classiﬁes these interest rate swaps as fair value hedges and states them at fair value. The net fair value of swaps at 31 March 2007 was £nil, comprising assets of 
£nil and liabilities of £nil (2006: £nil).
Effective interest rates and repricing analysis
In respect of income-earning ﬁnancial assets and interest-bearing ﬁnancial liabilities, the following table indicates their effective interest rates at the balance sheet date and the
periods in which they reprice.
6 months 6 months 2-3 3-4 4-5 More than
Effective or less – 2 years years years years 5 years
interest rate £m £m £m £m £m £m
Cash and cash equivalents
EUR interest bearing 3.8% 10.0 –––––
Other * 9.1–––––
Secured bank loans:
EUR fixed rate loan 3.9%–––– (3.1) –
Effect of interest rate swap (0.9%) (3.1) – – – 3.1 –
Unsecured bank loans
JPY fixed rate loan 1.2% – – – (3.4) – –
Effect of interest rate swap (0.3%) (3.4) – – 3.4 – –
Other unsecured bank loans 4.6% (23.1) –––––
Finance lease liabilities 4.9% – (2.5) ––––
Unsecured bank facility 4.4% (12 1.2) –––––
Bank overdrafts ** (1.9) –––––
At 31 March 2007 (133.6) (2.5) ––––
* Comprises local bank account balances, which typically bear interest at rates set by reference to local applicable rates or cash ﬂoat balances which have not yet cleared for
interest purposes.
** Bank overdrafts are repayable on demand and are all unsecured. They bear interest at rates set by reference to applicable local rates.
All ﬁnancial instruments are at ﬂoating rates of interest except for ﬁnance lease liabilities.
Electrocomponents plc Annual Report and Accounts 2007 41 Notes to the Group Accounts continued
2 1 Financial instruments continued
Comparative information
6 months 6 months 2-3 3-4 4-5 More than
Effective or less – 2 years years years years 5 years
interest rate £m £m £m £m £m £m
Cash and cash equivalents 3.6% 39.4–––––
Secured bank loans:
EUR fixed rate loan 3.9%––––– (3.7)
Effect of interest rate swap (2.0%) (3.7) –––– 3.7
Unsecured bank loans
JPY fixed rate loan 1.2% –––– (3.9) –
Effect of interest rate swap (0.8%) (3.9) – – – 3.9 –
Other unsecured bank loans 3.3% (17 .7) –––––
Finance lease liabilities 4.9% – – (5.1) – – –
Unsecured bank facility 3.7% (128.4) –––––
Bank overdrafts * (1.4) –––––
At 31 March 2006 (115.7) – (5.1) – – –
At the year end the Group had three committed bank facilities, one bilateral multicurrency facility for $100m due to expire in February 2008, but ultimately cancelled in April 2007 ,
a syndicated multicurrency facility for £110m and $1 20m and a syndicated facility for £63.5m both due to expire in February 2010.
Excluding the $100m bilateral, as at 31 March 2007 , the Group had available £11 3.5m of undrawn committed borrowing facilities in respect of which all conditions precedent 
had been met.
Foreign currency risk
The Group is exposed to foreign currency transaction risk primarily because purchases in currencies other than Sterling are much less than its receivables in those currencies. 
A very high level of hedging of 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 movements in exchange rates. The hedges are enacted through forward foreign 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.
The Group classiﬁes forward exchange contracts hedging forecast transactions as cash ﬂow hedges. These forecast cash ﬂows are expected to occur evenly throughout the 
period for 16 months from the year end, and will affect the proﬁt and loss account in the period in which they occur. The net fair value of forward exchange contracts as at 
1 April 2006 was -£0.1m comprising assets of £0.9m and liabilities of -£1.0m and was adjusted against the opening balance of the hedging reserve at that date. The net fair value
of forward exchange contracts used as hedges of forecast transactions at 31 March 2007 was £0.9m, comprising assets of £2.0m and liabilities of -£1.1m. Of this the amount
expected to be recognised in more than one year was £nil. The net fair value of forward exchange contracts not used as hedges of forecast transactions at 31 March 2007 was
£nil. The total net amount recognised in equity in the year to 31 March 2007 was £1.0m and the total net amount removed from equity during the year and taken to the income
statement was -£0.4m.
Foreign currency translation exposures arising from where the results of overseas companies are consolidated into the Group’s reporting currency of Sterling are not explicitly
hedged, local currency debt is used where economic and ﬁscally efﬁcient in the ﬁnancing of subsidiaries and this provides a partial hedge. Guidelines are in place for reviewing 
the impact of translation exposures arising from both the currency mix of the Group’s net debt and of net assets should there be any material changes. 
The Group has designated certain external loans as hedges of its investments in its US and European subsidiaries. The carrying amount of the US hedge was US $1 70m (£87m), 
of which $100m (£51m) formed part of the unsecured bank facility and $70m (£36m) was in the form of an overdraft. The carrying amount of the Euro hedge was €65m
(£44m), of which €55m (£37m) formed part of the unsecured bank facility and €10m (£7m) was in the form of an overdraft. Both the US Dollar and Euro overdrafts were 
shown in the balance sheet netted with positive cash balances, as there is an absolute right of set-off. A foreign exchange gain of £1 2m was recognised in equity on translation 
of the loans to sterling.
Sensitivity analysis
In managing interest rate and currency risk the Group aims to reduce the impact of short-term ﬂuctuations on the Group’s earnings. Over the longer term, however, permanent
changes in foreign exchange and interest rates would have an impact on Group earnings.
It is estimated that a general increase of one percentage point in interest rates would have decreased the Group’s proﬁt before tax by approximately £1.5m. Interest rate swaps
have been included in this calculation.
It is estimated that a decrease of one percentage point in the value of the US Dollar and the Euro against Sterling would have decreased the Group’s proﬁt before tax by £0.4m for
the year ended 31 March 2007 . The forward foreign exchange contracts have been included in this calculation.
42 Electrocomponents plc Annual Report and Accounts 2007 2 1 Financial instruments continued
Fair values
The fair values together with the carrying amounts shown in the balance sheet are as follows:
Carrying Fair Carrying Fair
amount value amount value
2007 2007 2006 2006
£m £m £m £m
Trade and other receivables due in more than one year 2.7 1.8 1.0 0.8
Cash and cash equivalents 19.1 19.1 39.4 39.4
Interest rate swaps: –
Assets –– 0.1 0.1
Liabilities –– (0.1) (0.1)
Forward exchange contracts:
Assets 2.0 2.0 0.9 0.9
Liabilities (1.1) (1.1) (1.0) (1.0)
Unsecured bank loans (26.5) (26.5) (2 1.6) (2 1.5)
Secured bank loans (3.1) (3.1) (3.7) (3.8)
Finance lease liabilities (2.5) (2.5) (5.1) (4.9)
Unsecured bank facilities (12 1.3) (12 1.3) (128.4) (128.4)
Trade and other payables due in more than one year (3.5) (2.5) (3.3) (2.3)
Bank overdraft (1.9) (1.9) (1.4) (1.4)
Unrecognised gains 0.1 1.0
Estimation of fair values
The following summarises the major methods and assumptions used in estimating the fair values of ﬁnancial instruments reﬂected in the table.
Derivatives
Forward exchange contracts are valued by discounting the difference between the contractual forward price and the current forward rate. For interest rate swaps broker quotes
are used.
Interest-bearing loans and borrowings
Fair value is calculated based on discounted expected future principal and interest cash ﬂows. For amounts with a repricing maturity of less than one year the notional amount is
deemed to reﬂect the fair value.
Finance lease liabilities
The fair value is estimated as the present value of future cash ﬂows discounted at market rates.
Trade and other receivables and payables
Receivables and payables are discounted to determine the fair value. The average credit period taken for trade payables is 43 days (2006: 43 days).
22 Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net
2007 2006 2007 2006 2007 2006
Group £m £m £m £m £m £m
Property, plant & equipment 0.1 1.8 (13.5) (15.9) (13.4) (14.1)
Goodwill – – (18.3) (15.8) (18.3) (15.8)
Retirement benefit obligations 9.6 12.1 – – 9.6 12.1 
Inventories 0.4 0.8 (0.1) – 0.3 0.8 
Employee benefits 1.5 1.0 – – 1.5 1.0 
Provisions 1.0 0.7 – – 1.0 0.7 
Other items 0.3 – (0.8) (1.2) (0.5) (1.2)
Tax losses 11.1 13.7 – – 11.1 13.7 
Tax assets (liabilities) 24.0 30.1 (32.7) (32.9) (8.7) (2.8)
Set off of tax (9.8) (12.6) 9.8 12.6 – – 
Net tax assets (liabilities) 14.2 1 7 .5 (22.9) (20.3) (8.7) (2.8)
A deferred tax asset has been recognised for tax losses where current projections show that sufﬁcient taxable proﬁts will arise in the near future against which these losses may
be offset.
2007 2006
£m £m 
Unrecognised deferred tax assets
Tax losses 8.5 11.0
8.5 11.0
The tax losses above have not been recognised as recoverability is uncertain.
At the balance sheet date, the aggregate amount of temporary differences for which deferred tax liabilities have not been recognised was expected to be £6.0 million. No liability
has been recognised in respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences and it is probable that 
such differences will not reverse in the foreseeable future. Further, the Group has sufﬁcient relevant losses to fully offset the £6.0 million liability.
Deferred tax has been measured using the standard rate of corporation tax in the UK at the balance sheet date. In April 2008 the statutory rate of corporation tax will be reduced 
to 28%. Based on the statutory rate of 28% the net deferred tax liability at 31 March 2007 would have been £0.1m lower.
Electrocomponents plc Annual Report and Accounts 2007 43 Notes to the Group Accounts continued
23 Lease commitments
Operating 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 2007 was £3.3m (2006: £5.3m). 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 £6.6m (2006: £8.1m). 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. Operating lease rentals are payable as follows:
Plant and
Properties machinery
2007 2006 2007 2006
£m £m £m £m
Within one year 5.6 4.5 2.6 2.8
Within two to five years 8.9 10.8 4.1 4.1
After five years 8.7 8.8 – –
23.2 24.1 6.7 6.9
24 Related parties
The Group has a related party relationship with its subsidiaries (see note 16 ) and with its key management personnel. The key management personnel of the Group are the
Executive Directors. Compensation of key management personnel was:
2007 2006
£m £m
Remuneration 1.5 1.4
Social security costs 0.1 0.2
Equity settled transactions 0.6 0.5
Pension costs 0.1 0.2
2.3 2.3
Details of transactions with associates are given in note 16 to the accounts.
25 Share capital
2007 2006
Number of Number of 2007 2006
shares 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 2006 435,276,125 435,259,07 1 43.5 43.5
New share capital subscribed 48,882 17 ,054 – –
At 31 March 2007 435,325,007 435,276,125 43.5 43.5
All of the new share capital subscribed in 2007 related to the exercise of share options (see note 7).
For details of the shares held by Electrocomponents plc in itself see note 8 to the Company accounts on page 51.
26 Reserves Other reserves
Share Total
premium Own shares Hedging Cumulative Profit and loss other
account held reserve translation account reserves Total
£m £m £m £m £m £m £m
At 1 April 2005 38.4 (1.7) 0.9 1.5 274.0 274.7 313.1
Total recognised income and expense – – (1.0) 11.6 46.5 57 .1 57 .1
Dividend paid –––– (80.0) (80.0) (80.0)
Equity settled transactions –––– 2.7 2.7 2.7
Premium on new share capital subscribed –––––––
At 1 April 2006 38.4 (1.7) (0.1) 13.1 243.2 254.5 292.9
Total recognised income and expense – – 1.0 (11.6) 55.8 45.2 45.2
Dividend paid –––– (80.0) (80.0) (80.0)
Equity settled transactions –––– 2.7 2.7 2.7
Premium on new share capital subscribed 0.3 ––––– 0.3
At 31 March 2007 38.7 (1.7) 0.9 1.5 22 1.7 222.4 26 1.1
The cumulative amount of goodwill written off directly to Group proﬁt and loss reserves in respect of subsidiaries that form part of the Group’s continuing activities at 
31 March 2007 is £42.8m (2006: £42.8m).
The own shares held reserve represents the cost of shares in Electrocomponents plc purchased in the market and held by the Electrocomponents Employee Trust to satisfy
options under the Group’s share option schemes (see note 7).
The translation reserve comprises all foreign exchange differences arising from the translation of the accounts of foreign operations as well as from the translation of liabilities 
that hedge the Group’s net investment in foreign subsidiaries.
The hedging reserve comprises the fair value of forward foreign exchange contracts and interest rate swaps outstanding at the period end. 
44 Electrocomponents plc Annual Report and Accounts 2007 27 Reconciliation of movements in equity
2007 2006
£m £m
Profit for the year 56.2 43.6
Dividend (80.0) (80.0)
Retained loss (23.8) (36.4)
Translation differences (11.6) 11.6
Gain (loss) on cashflow hedges 1.0 (1.0)
Actuarial (loss) gain on defined benefit pension schemes (0.4) 4.2
Tax impact on adjustments taken directly to reserves – (1.3)
Equity settled transactions 2.7 2.7
New share capital subscribed 0.3 –
Net reduction to equity (31.8) (20.2)
Equity shareholders’ funds at the beginning of the year 336.4 356.6
Equity shareholders’ funds at the end of the year 304.6 336.4
28 Cash and cash equivalents
2007 2006
£m £m
Bank balances 16.1 15.4
Call deposits and investments 3.0 24.0
Cash and cash equivalents in the balance sheet 19.1 39.4
Bank overdrafts (1.9) (1.4)
Cash and cash equivalents in the statement of cash flows 17 .2 38.0
Current instalments of loans (77 .1) (2 1.6)
Loans repayable after more than one year (76.3) (137 .2)
Net debt (136.2) (120.8)
Gross pension deficit (38.7) (41.8)
Net debt including gross pension deficit (1 74.9) (162.6)
29 Contingent liabilities
At 31 March 2007 there were no contingent liabilities (2006: none).
30 Principal exchange rates
2007 2006
Average Closing Average Closing
United States Dollar 1.90 1.96 1.79 1.7 4
Euro 1.47 1.47 1.46 1.43
Japanese Yen 22 1 232 202 205
Electrocomponents plc Annual Report and Accounts 2007 45 Company Balance Sheet
As at 31 March 2007
2007 2006
Note £m £m
Fixed assets
Tangible fixed assets 6 18.6 27 .4
Investments 7 372.6 423.4
391.2 450.8
Current assets
Debtors 9 160.1 9.1
Investments – Bank deposits 3.0 24.0
Cash at bank and in hand 30.0 45.7
193.1 78.8
Creditors: amounts falling due within one year 10 (188.8) (87 .9)
Net current assets (liabilities) 4.3 (9.1)
Total assets less current liabilities 395.5 441.7
Creditors: amounts falling due after more than one year 10 (70.2) (128.4)
Provisions for liabilities and charges 12 (0.8) (2.1)
324.5 311.2
Capital and reserves
Called-up share capital 15 43.5 43.5
Share premium account 16 38.7 38.4
Retained earnings 16 242.3 229.3
Equity shareholders’ funds 324.5 311.2
These accounts were approved by the Board of Directors on 30 May 2007 and signed on its behalf by:
Simon Boddie 
Group Finance Director
The notes on pages 48 to 52 form part of these Company accounts.
46 Electrocomponents plc Annual Report and Accounts 2007 Company Signiﬁcant Accounting Policies
Basis of preparation 
The Company accounts have been prepared under the historical cost convention,
modiﬁed to include revaluation to fair value of certain ﬁnancial instruments as
described below, and in accordance with UK Company Law and UK Generally Accepted
Accounting Practice (UK GAAP).
The Group accounts have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union and are presented on 
pages 24 to 45.
Under section 230(4) of the Companies Act 1985 the Company is exempt from the
requirements to present its own proﬁt and loss account.
Under Financial Reporting Standard 25, the Company is exempt from disclosure
requirements of FRS 25 (Financial Instruments: Presentation) on the grounds that the
parent undertaking Electrocomponents plc includes the Company in its own published
consolidated accounts. Disclosures are provided in note 2 1 under IAS 32 (Financial
Instruments: Presentation) which comply with the disclosure requirements of FRS 25.
The following paragraphs describe the main accounting policies under UK GAAP , which
have been applied consistently.
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. 
Translation of foreign currencies 
Transactions in foreign currencies are recorded using the rate of exchange ruling at 
the date of the transaction or 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 
Derivative ﬁnancial instruments
The Company uses derivative ﬁnancial instruments to hedge its exposure to foreign
exchange and interest rate risks arising from operational and ﬁnancing activities. It
principally employs forward foreign exchange contracts to hedge against changes in
exchange rates over the catalogue periods of the majority of its operating companies. 
In addition there are also a small number of interest rate swaps which swap certain 
ﬁxed rate loans into ﬂoating rate. 
In accordance with its treasury policies, the Company does not hold or issue derivative
ﬁnancial instruments for trading purposes. 
Certain derivative ﬁnancial instruments are designated as hedges in line with the
Company’s risk management policies. Hedges are classiﬁed as follows:
Fair value hedges when they hedge the exposure to changes in the fair value of 
a recognised asset or liability.
Cash ﬂow hedges when they hedge the exposure to variability in cash ﬂows that 
is attributable to a particular risk associated with a forecast transaction.
Net investment hedges when they hedge the exposure to changes in the value of 
the Company’s interests in the net assets of foreign operations. 
All the Company’s derivatives have no initial cost. In subsequent periods they are stated
in the Balance Sheet at fair value. Changes in the fair value of derivative ﬁnancial
instruments that do not qualify for cash ﬂow or net investment hedge accounting are
recognised in the Proﬁt and Loss as they arise. 
Cash ﬂow hedge accounting
Where a derivative ﬁnancial instrument is designated as a hedge of the variability in
cash ﬂows of a recognised asset or liability, or a highly probable forecast transaction,
the highly effective part of any gain or loss on the derivative ﬁnancial instrument is
recognised directly in equity. The ineffective part of any gain or loss is recognised
immediately in the Proﬁt and Loss Account. When the forecast transaction subsequently
results in the recognition of a non-ﬁnancial asset or liability the associated cumulative
gain or loss is removed from equity and included in the initial cost of the non-ﬁnancial
asset or liability. When the forecast transaction subsequently results in the recognition
of a ﬁnancial asset or liability, the associated cumulative gain or loss that was
recognised directly in equity is reclassiﬁed into proﬁt or loss in the same period 
during which the asset acquired or liability assumed affects proﬁt or loss.
When a hedging instrument expires or is sold, terminated or exercised, or the entity
revokes designation of the hedge relationship but the hedged forecast transaction is
still expected to occur, the cumulative gain or loss at that point remains in equity and is
recognised in accordance with the above policy when the transaction occurs. If the
hedged transaction is no longer expected to take place, the cumulative unrealised gain
or loss recognised in equity is recognised immediately in the Proﬁt and Loss Account.
The fair value of forward foreign exchange contracts is the difference between their
discounted contractual forward price and their current forward price. 
Fair value hedge accounting
The Company uses derivative ﬁnancial instruments to hedge exposure to interest rate
risks arising from ﬁnancing activities, holding a small number of interest rate swaps
which swap certain ﬁxed rate loans into ﬂoating rate. 
The fair value of the interest rate swaps is the market value of the swap at the balance
sheet date, taking into account current interest rates. 
Pension costs 
The Company participates in group operated deﬁned contribution and deﬁned beneﬁt
pension schemes. The assets of the schemes are held separately from those of the
Company in independently administered funds. 
The Company is unable to identify its share of the deﬁned beneﬁt scheme’s underlying
assets and liabilities and therefore accounts for its deﬁned contribution. The amounts
charged against proﬁts represent contributions to the schemes in respect of the
accounting period.
Long Term Incentive Plan and Long Term Incentive Share Option Plan 
The Company operates several share-based payment schemes, the largest of which are
the Savings Related Share Option Scheme (SAYE), the Long Term Incentive Option Plan
(L TIOP), the Long Term Incentive Plan (L TIP) and the Executive Incentive Plan (EIP). 
The fair value of options granted is recognised as an employee expense with a
corresponding increase in equity and spread over the period during which employees
become unconditionally entitled to the options. The fair values are calculated using 
an appropriate option pricing model. The proﬁt and loss account charge is then 
adjusted to reﬂect expected and actual levels of vesting based on non market
performance related criteria. 
All proﬁt and loss account charges relating to options held by members of other 
Group companies are charged to the appropriate Group company. 
The Company has chosen to adopt the exemption whereby FRS 20, Share-Based
Payment, is applied only to awards made after 7 November 2002. 
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% 
Warehouse systems 10-20% 
Plant and equipment 10-20% 
Mainframe computer equipment 20% 
Network computer equipment 33% 
Portable computers 50% 
Computer software costs 1 2.5-50% 
Other ofﬁce equipment 20% 
Taxation 
The charge for taxation is based on the proﬁt for the year and takes into account
taxation deferred because of timing differences.Deferred tax is recognised, without
discounting, in respect of all timing differences between the treatment of certain 
items for taxation and accounting purposes. 
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.
Own shares held
The Company’s own shares held by the Electrocomponents Employee Trust and the
QUEST are deducted from shareholders’ funds until they vest unconditionally with
employees as required by UITF 38: Accounting for ESOP Trusts.
Electrocomponents plc Annual Report and Accounts 2007 47 Notes to the Company Accounts
For the year ended 31 March 2007
1 Proﬁt for the ﬁnancial year
The proﬁt dealt with in the accounts of the Company is £90.9m (2006: £65.7m). A separate proﬁt and loss account has not been presented in respect of the Company, as 
provided by Section 230 of the Companies Act 1985.
Fees paid to KPMG Audit Plc and its associates for non-audit services to the Company itself are not disclosed in the individual accounts of Electrocomponents Plc because the
Company’s consolidated accounts are required to disclose such fees on a consolidated basis.
2Employees
Numbers employed
2007 2006
The average number of employees during the year was:
Management and administration 25 30
Distribution and marketing 11 17
36 47
Aggregate employment costs
£m £m
Wages and salaries 3.1 3.4
Social security costs 0.4 0.4
Equity-settled transactions 1.5 0.7
Pension costs 0.3 0.6
5.3 5.1
3 Share-based payments
Details of the share-based payment schemes that existed during the year are given in note 7 to the Group accounts.
Number and weighted average exercise prices of share options
Weighted Weighted 
average Number of average Number of
exercise price options exercise price options
In thousands of options 2007 2007 2006 2006
Outstanding at the beginning of the year 237p 9,1 20 367p 5,802
Forfeited during the year 272p (2,163) 339p (880)
Lapsed during the year 207p (1,114) 427p (249)
Exercised during the year 205p (59) n/a –
Granted during the year 12p 526 99p 4,447
Outstanding at the end of the year 2 1 7p 6,310 237p 9,1 20
Exercisable at the end of the year –– ––
The options outstanding at 31 March 2007 have an exercise price in the range 0p to 686p and a weighted average contractual life of 7 .7 years.
Employee expenses
2007 2006
£m £m
Share options granted in 2003/04 0.1 0.2
Share options granted in 2004/05 0.3 0.3
Share options granted in 2005/06 0.8 0.2
Share options granted in 2006/07 0.3 –
Total expense recognised as employee costs 1.5 0.7
4Pension
The UK deﬁned beneﬁt scheme is described in note 8 to the Group accounts. The last actuarial valuation of the UK scheme was carried out as at 31 March 2004 and has been
updated to 31 March 2007 by a qualiﬁed independent actuary in accordance with FRS 1 7 . The deﬁcit on the UK scheme is included within the balance sheet of RS Components Ltd,
a subsidiary of Electrocomponents plc, as it is this company which employs the majority of the scheme members. As allowed by FRS 1 7 , the deﬁcit has not been split between
Electrocomponents plc and RS Components Ltd as it is not possible to do so. This disclosure therefore relates to the UK pension scheme rather than just the Electrocomponents plc
part of it.
The principal assumptions used in the valuation of the liabilities of the scheme were:
2007 2006 2005 2004
Discount rate 5.25% 4.90% 5.40% 5.40%
Rate of increase in salaries 3.85% 3.90% 3.90% 4.65%
Rate of increase of pensions in payment 3.10% 2.90% 2.90% 2.90%
Inflation assumption 3.10% 2.90% 2.90% 2.90%
48 Electrocomponents plc Annual Report and Accounts 2007 4Pension continued
The expected long-term rates of return on the scheme assets as at 31 March were:
2007 2006 2005 2004
Equities 7. 40% 7 .05% 6.95% 7 .00%
Corporate bonds 4.50% 4.15% 4.65% 4.65%
Government bonds 3.90% 3.55% 3.95% 4.00%
Cash 4.50% 3.75% 4.00% 3.25%
The valuation of the assets of the scheme as at 31 March was:
2007 2006 2005 2004
£m £m £m £m
Equities 203.7 189.9 143.5 127 .7
Corporate bonds 24.0 22.6 18.4 14.3
Government bonds 41.6 39.7 32.7 25.7
Cash 2.6 1.5 3.4 3.7
Total market value of assets 27 1.9 253.7 198.0 1 7 1.4
The valuation of the scheme as at 31 March was:
2007 2006
£m £m
Total market value of assets 27 1.9 253.7
Present value of scheme liabilities (303.8) (288.7)
Deficit in the scheme recognised in the accounts of RS Components Ltd (31.9) (35.0)
Related deferred tax asset 9.6 12.1
Net pension liability (22.3) (22.9)
In addition, the value of the assets and liabilities held in respect of AVCs amounted to £1.0m as at 31 March 2007 (2006: £1.0m). The value of the assets and liabilities held in
respect of the deﬁned contribution section of the scheme amounted to £5.5m (2006: £2.8m).
The amounts charged to the proﬁt and loss account are as shown below. The charge has been allocated between RS Components Limited and Electrocomponents plc based upon
the pensionable salaries of current employees.
2007 2006
£m £m
Current service cost 6.9 7. 1
Past service cost – –
Interest cost 14.2 13.1
Expected return on scheme assets (15.9) (12.6)
Total profit and loss account charge included in the accounts of Electrocomponents plc and RS Components Limited 5.2 7.6
The amount included within the statement of total recognised gains and losses in RS Components was:
2007 2006 2005 2004
Actual less expected return on scheme assets (1.5) 36.1 4.2 25.3
As a % of scheme assets (0.6%) 14.2% 2.1% 14.8%
Experience gains and (losses) arising on the scheme liabilities (0.8) 0.1 7 .7 (4.4)
As a % of scheme liabilities (0.3%) 0.0% 3.2% 2.0%
Changes in the assumptions underlying the present value of the scheme liabilities 1.3 (32.0) (10.1) (22.1)
Actuarial gain (loss) recognised in the statement of total recognised gains and losses (1.0) 4.2 1.8 (1.2)
As a % of scheme liabilities 0.3% 1.5% 0.8% 0.6%
The movement in the deﬁcit was:
£m
Deficit in the scheme at the beginning of the year (35.0)
Movement in the year:
Current service cost (6.9)
Past service cost –
Contributions 9.3
Other finance expense 1.7
Actuarial gain (loss) (1.0)
Deficit in the scheme at the end of the year (31.9)
Electrocomponents plc Annual Report and Accounts 2007 49 Notes to the Company Accounts continued
5 Dividends
2007 2006
£m £m
Amounts recognised in the period:
Final dividend for the year ended 31 March 2006 – 12.6p (2005: 12.6p) 54.8 54.8
Interim dividend for the year ended 31 March 2007 – 5.8p (2006: 5.8p) 25.2 25.2
80.0 80.0
Proposed dividend for the year ended 31 March 2007 – 12.6p 54.8
The proposed ﬁnal dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these ﬁnancial statements.
6 T angible ﬁxed assets
Land and Plant and Computer
buildings machinery systems Total
Cost £m £m £m £m
At 1 April 2006 31.1 8.6 0.5 40.2
Additions – 0.6 – 0.6
Disposals (9.6) – (0.1) (9.7)
Reclassification ––––
At 31 March 2007 2 1.5 9.2 0.4 31.1
Depreciation
At 1 April 2006 4.3 8.0 0.5 12.8
Charged in the year 0.3 0.5 – 0.8
Disposals (1.0) – (0.1) (1.1)
Reclassification ––––
At 31 March 2007 3.6 8.5 0.4 12.5
Net book value
At 31 March 2007 1 7 .9 0.7 – 18.6
At 31 March 2006 26.8 0.6 – 27 .4
2007 2006
Net book value of land and buildings £m £m
Freehold land 4.6 6.4
Freehold buildings 13.2 20.4
Leasehold buildings 0.1 –
17 .9 26.8
All classes of tangible ﬁxed assets are depreciated except for freehold land.
7 Investments: subsidiary undertakings
Shares Loans Total
Cost: £m £m £m
At 31 March 2006 17 5.1 26 3.7 438.8
Additions – 98.7 98.7
Reclassification – (149.0) (149.0)
Disposals (0.5) – (0.5)
At 31 March 2007 17 4.6 2 1 3.4 388.0
Provisions:
At 31 March 2006 – 15.4 15.4
Released in the year –––
At 31 March 2007 –15.415.4
Net book value:
At 31 March 2007 1 74.6 198.0 372.6
At 31 March 2006 1 75.1 248.3 423.4
A list of the principal subsidiary undertakings held by the Company is disclosed in note 16 to the Group accounts.
50 Electrocomponents plc Annual Report and Accounts 2007 8 Own shares
During the year no ordinary shares in the Company were purchased by the trustees (2006: none). At 31 March 2007 , a total of 308,4 1 7 (2006: 308,4 1 7) 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 2007 was £892,867 (2006: £863,568).
At 31 March 2007 , a total of nil (2006: 39,342) ordinary shares were also held by the QUEST. The market value of the shares at 31 March 2007 was £nil (2006: £110,158).
9Debtors
2007 2006
£m £m
Amounts owed by subsidiary undertakings 158.6 7.9
Other debtors 0.8 0.2
Other prepayments and accrued income 0.7 1.0
Amounts falling due within one year 160.1 9.1
10 Creditors: amounts falling due within one year
2007 2006
£m £m
Bank overdrafts (unsecured) 63.2 19.3
Current instalments of loans (see note 11) 74.1 17 .7
Amounts owed to subsidiary undertakings 47 .0 47 .8
Other taxation and social security 0.1 0.1
Accruals and deferred income 4.4 3.0
Amounts falling due within one year 188.8 87 .9
Amounts falling due after more than one year:
Loans repayable after more than one year (see note 11) 70.2 128.4
259.0 2 16.3
11 Loans
2007 2006
£m £m
Australian Dollar bank loans 2.2 2.9
Euro bank loans 37 .5 35.0
GBP bank loans 7. 1 –
Hong Kong Dollar bank loans 5.0 5.0
Japanese Yen bank loans 28.3 31.0
Singapore Dollar bank loans 5.1 3.8
South African Rand bank loans 6.7 7. 1
US Dollar bank loans 52.4 61.3
144.3 146.1
Amounts falling due within one year or on demand (74.1) (1 7 .7)
70.2 128.4
Loans repayable in more than one but not more than two years – 57 .5
Loans repayable in more than two but not more than five years 70.2 70.9
Loans repayable in more than five years – –
70.2 128.4
The bank loans are at variable rates of interest and are unsecured.
12 Provisions for liabilities and charges
Deferred taxation
£m
At 1 April 2006 2.1
Profit and loss account (1.3)
At 31 March 2007 0.8
2007 2006
Deferred taxation £m £m
Amounts provided:
Accelerated capital allowances 1.0 2.0
Share schemes (0.5) –
Other short-term timing differences 0.3 0.1
0.8 2.1
Electrocomponents plc Annual Report and Accounts 2007 51 Notes to the Company Accounts continued
13 Lease commitments
The minimum annual rentals in respect of the Company’s operating lease commitments are as follows:
Plant and
machinery
2007 2006
£m £m
Within one year 0.3 –
Within two to five years 1.2 0.1
After five years 1.5 –
3.0 0.1
14 Contingent liabilities
Guarantees in respect of bank facilities available to certain subsidiaries up to a maximum of £23.6m (2006: £25.7m), of which £16.4m (2006: £1 7 .3m) had been drawn down by
the end of the year.
Where the Company enters into ﬁnancial guarantee contracts to guarantee the indebtedness of other companies within the Group, the Company considers these to be insurance
arrangements, and accounts for them as such. In this respect, the Company treats the guarantee contracts as a contingent liability until such time as it becomes probable that the
Company will be required to make a payment under the guarantee.
15 Share capital
2007 2006 2007 2006
Number of Number of
shares 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 2006 435,276,125 435,259,07 1 43.5 43.5
New share capital subscribed 48,882 17 ,054 – –
At 31 March 2007 435,325,007 435,276,125 43.5 43.5
All of the new share capital subscribed in 2007 related to the exercise of share options.
16 Reserves
Share 
premium Own shares Hedging Profit and Retained
account held reserve loss earnings Total
£m £m £m £m £m £m
At 1 April 2006 38.4 (1.7) – 231.0 229.3 267 .7
Profit for the year – – 0.6 90.9 91.5 91.5
Dividend – – – (80.0) (80.0) (80.0)
Equity settled transactions – – – 1.5 1.5 1.5
Premium on new share capital subscribed 0.3 –––– 0.3
At 31 March 2007 38.7 (1.7) 0.6 243.4 242.3 281.0
1 7 Reconciliations of movements in shareholders’ funds
2007 2006
£m £m
Profit for the year 90.9 65.7
Dividend (80.0) (80.0)
Retained profit/(loss) for the year 10.9 (14.3)
Gain on cash flow hedges 0.6 –
Equity settled transactions 1.5 0.7
New share capital subscribed 0.3 –
Net increase/(reduction) in equity 13.3 (13.6)
Equity shareholders’ funds at the beginning of the year 311.2 324.8
Equity shareholders’ funds at the end of the year 324.5 311.2
52 Electrocomponents plc Annual Report and Accounts 2007 Five Year Record
Y ear ended 31 March
Electrocomponents plc Annual Report and Accounts 2007 53
IFRS IFRS IFRS UK GAAP UK GAAP
2007 2006 2005 2004 2003
Revenue 877 .5 828.5 773.9 759.3 743.7
Operating profit 91.1 68.5 100.8 98.3 91.0
Provision for RoHS – 4.0–––
Reorganisation (income)/costs (0.8) 3.7–––
Amortisation of goodwill – – – 10.2 11.3
Headline operating profit 90.3 76.2 100.8 108.5 102.3
Net interest payable (5.9) (3.4) (0.9) (1.4) (1.2)
Profit before tax 85.2 65.1 99.9 96.9 89.8
Provision for RoHS – 4.0–––
Reorganisation (income)/costs (0.8) 3.7–––
Amortisation of goodwill – – – 10.2 11.3
Headline profit before tax 84.4 72.8 99.9 107 .1 101.1
Tax (29.0) (2 1.5) (32.3) (31.0) (29.3)
Profit for the year attributable to the equity shareholders 56.2 43.6 67 .6 65.9 60.5
Non-current assets 325.0 342.0 323.2 305.2 346.8
Current assets 351.8 36 1.3 354.4 353.6 307 .6
Current liabilities (226.4) (159.8) (155.9) (2 10.0) (204.6)
Non-current liabilities (145.8) (207 .1) (166.0) (104.4) (63.1)
Net assets 304.6 336.4 355.7 344.4 386.7
Number of shares in issue:
Weighted average (excluding own shares held) 434.9 434.9 434.9 434.9 434.8
Year end 435.3 435.3 435.3 435.2 435.2
Dividend per share (pence) 18.4 18.4 18.4 18.2 1 7 .0
Average number of employees 5,451 5,206 4,993 4,973 5,028
Share price at 31 March (pence) 289.5 280.0 247 .5 341.5 257 .0
The amounts disclosed for 2004 and earlier are disclosed on the basis of UK GAAP because it is not practicable to restate amounts for periods prior to the date of transition to IFRS.  Notice of Annual General Meeting
This document is important and requires your immediate attention. If you are in any
doubt as to what action you should take, you should seek your own advice from your
stockbroker, bank manager, solicitor, accountant or other independent ﬁnancial
adviser duly authorised under the Financial Services and Markets Act 2000. 
If you have sold or transferred all of your ordinary shares, please send the Report and
Accounts containing this document, together with the accompanying form of proxy, as
soon as possible to the purchaser or transferee of those shares or to the stockbroker,
bank or other agent through whom the sale or transfer was effected for transmission
to the purchaser or transferee.
Notice is hereby given that the Annual General Meeting of Electrocomponents plc will
be held at the Company’s premises, The International Management Centre, 8050
Oxford Business Park North, Oxford OX4 2HW on Friday 1 3 July 2007 at 1 2.00 noon.
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 2007 .
Directors’ Remuneration Report
2 To approve the Directors’ Remuneration Report for the year ended 31 March 2007 .
Declaration of Dividend
3 To declare a ﬁnal dividend on the ordinary shares.
Retiring Directors and New Directors
4 To elect Mr H Mamsch as a Director.
5 To re-elect Dr L Atkinson as a Director.
6 To re-elect Mr I Mason as a Director.
Auditors’ appointment and remuneration
7 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 of which resolution 8 
will be proposed as an Ordinary Resolution and resolution 9 will be proposed as 
a Special Resolution:
Electronic Communication
8 THAT the Company be authorised, subject to and in accordance with the provisions
of the Companies Act 2006, to send, convey or supply all types of notices,
documents or information to the members by means of electronic equipment,
including by making such notices, documents or information available on a website.
Renewal of Directors’ authority for the purchase by the Company of its own shares
9 THAT the Company is hereby generally and unconditionally authorised to make
market purchases (within the meaning of Section 1 6 3(3) of the Companies Act 1 985)
of ordinary shares of 1 0p each in the Company (ordinary shares) provided that:
(a) the maximum number of ordinary shares hereby authorised to be purchased
is 43,532,000; 
(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 the higher of (i) 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 or
(ii) the higher of the price of the last independent trade and the highest
current bid as stipulated by Article 5(1) of Commission Regulation (EC) 
22 December 2003 implementing the Market Abuse Directive as regards
exemptions for buyback programmes and stabilisation of ﬁnancial
instruments (No 2273/2003);
(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.
The Directors consider that the passing of each of the resolutions proposed at the
Annual General Meeting is in the best interests of the Company and its shareholders as
a whole and recommend all shareholders to vote in favour of all the resolutions, as the
Directors intend to do in respect of their own beneﬁcial holdings.
By Order of the Board
Ian Haslegrave
Company Secretary
30 May 2007
Registered Ofﬁce: International Management Centre, 8050 Oxford Business Park
North, Oxford OX4 2HW Registered Number: 647788
54 Electrocomponents plc Annual Report and Accounts 2007 Electrocomponents plc Annual Report and Accounts 2007 55
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 pm on 11 July 2007 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 Register of Members after
6.00 pm on 11 July 2007 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 6ZP by not later 
than 1 2.00 noon on Wednesday 11 July 2007 .
(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 1 3 July 2007 at 1 2.00 noon 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) If the Chairman, as a result of any proxy appointments, is given discretion as to
how the votes the subject of those proxies are cast and the voting rights in
respect of those discretionary proxies, when added to the interests in the
Company’s securities already held by the Chairman, result in the Chairman
holding such number of voting rights that he has a notiﬁable obligation under 
the Disclosure and Transparency Rules, the Chairman will make the necessary
notiﬁcations to the Company and the Financial Services Authority. As a result,
any member holding 3% or more of the voting rights in the Company who grants
the Chairman a discretionary proxy in respect of some or all of those voting
rights and so would otherwise have a notiﬁcation obligation under the
Disclosure and Transparency Rules, need not make a separate notiﬁcation 
to the Company and the Financial Services Authority.
(vi) As at 30 May 2007 , the latest practicable date prior to the printing of this 
Notice, the Company’s total capital consisted of 435,330,490 Ordinary 
Shares with a total of 435,330,490 voting rights.
(vii) 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.
(viii) Biographical details of the Directors who are proposed for re-election or election
at the Annual General Meeting are set out on page 1 4. 56 Electrocomponents plc Annual Report and Accounts 2007
Registered Ofﬁce
Electrocomponents plc
International Management Centre
8050 Oxford Business Park North
Oxford OX4 2HW
United Kingdom
Tel: (44) (0) 1865 204000
Fax: (44) (0) 1865 207 400
Website: www.electrocomponents.com
Financial Calendar
Announcement of results
The results of the Group are normally published at the following times.
Interim results for the six months to 30 September in early November.
Preliminary announcement for the year to 31 March in late May/early June.
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.
2007 ﬁnal dividend
Ex-dividend date 27 June 
Record date 29 June
Annual General Meeting 1 3 July
Dividend paid 27 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 E1 4 5LB
Registrars and transfer ofﬁce
Lloyds TSB Registrars
The Causeway
Worthing 
West Sussex BN99 6DA
Solicitors
Norton Rose
3 More London Riverside
London SE1 2AQ
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.
Principal Locations Registered Ofﬁce, Advisers 
and Financial Calendar
United Kingdom
UK
www.rswww.com
Global exports
www.rs-export.com
Continental Europe
Austria
www.rs-components.at
Belgium
www.rsonline.be
Denmark
www.rsonline.dk
France
www.radiospares.fr
Germany
www.rsonline.de
Ireland
www.radionics.ie
Italy
www.rs-components.it
Netherlands
www.rsonline.nl
Norway
www.rsonline.no
Portugal
www.rsportugal.com
Spain
www.amidata.es
Sweden
www.rsonline.se
North America
Canada
www.alliedelec.com
USA
www.alliedelec.com
Asia Paciﬁc
Australia
www.rsaustralia.com
Chile
www.rschile.cl
China
www.rsprc.com
Hong Kong
www.rshongkong.com
India
www.rsindia.com
Japan
www.rswww.co.jp
Malaysia
www.rsmalaysia.com
New Zealand
www.rsnewzealand.com
Philippines
www.rsphilippines.com
Singapore
www.rssingapore.com
South Africa
www.rssouthafrica.com
T aiwan
www.rstaiwan.com