Questor share tip: Electrocomponents a hold as sales growth slows The market cheered Electrocomponents' first-quarter update on Friday, on signs that the rate at which growth is slowing has moderated. Then the shares jumped 6.4pc, but there are still tough times ahead. The supplier of electrical and electronic parts said first-quarter sales were flat on a year-on-year basis. In the first quarter of last year, sales rose 14pc, with 8pc growth in the second quarter, 4pc growth in the third quarter and 1pc growth in the final quarter. There is a strong cyclical element to the company's business and manufacturing gauges in many countries are showing a contraction. However, Electrocomponents has scale advantages which means it should be able to continue to grow faster than the market. "We are well-positioned compared to the numerous, smaller distributors against whom we primarily compete, who do not have the advantage of our global scale and reach," said Ian Mason, its chief executive. We are therefore continuing to invest in our strategic priorities to leverage these advantages. By region, the international business saw revenues down 2pc, with the UK growing by 5pc. In the UK, 2 percentage points of the increase was accounted for by Raspberry Pi, a new mini-computer used as an educational tool to develop programming skills. So far, we have not seen a fall in sales, just a reduction in the amount of sales growth. Despite investors cheering Friday's update, the group's second quarter will be crucial, as revenues rose by 8pc in the equivalent period of last year. The shares have fallen by 16pc since Questor last said hold in April, but the company is geared to any recovery when it eventually emerges, so the rating remains hold.