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Electrocomponents first-half profit hurt by British Steel liquidation

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By Reuters

(Reuters) – Electrocomponents <ECM.L> said it has booked asset write-downs related to the liquidation of British Steel, forcing a fall in the industrial and electronics products distributor’s first-half profit, sending its shares almost 10% lower.

Electrocomponents said it had written down 10.4 million pounds ($13.31 million) of assets, including 7.2 million pounds for outstanding payments from deals with British Steel before May 22 and 3.2 million pounds against inventory recovered from the steel products maker.

British Steel, which could be rescued by China’s Jingye Group, was put into compulsory liquidation in May after Greybull Capital, which bought it for one pound from Tata Steel <TISC.NS> in 2016, failed to secure funding to continue its operations.

Shares in Electrocomponents were 9.6% lower at 637.28 pence, at the bottom of London’s midcap index <.FTMC>, on track for their worst day in five years.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shailesh Kuber)