Questor share tip: Electrocomponents is outperforming in tough markets However, the flat result is against a tough comparative, with revenues up 11pc in the first half of last year. The result is also better than rival Premier Farnell, which saw a 3.3pc fall in revenue. The consensus range for full-year pre-tax profit was £110m to £120m ahead of the statement. This has since been trimmed by about 6pc. The UK put in a good performance, with revenues up 5pc, or 3pc if Raspberry Pi is excluded. Raspberry Pi is a credit-card sized computer that plugs into a TV and a keyboard. It was developed in the UK to help teach children computer programming in schools and proved exceptionally popular after its February launch. The continental European business was weak, with sales falling 1pc in the second quarter after rising by 1pc in the first. North America saw its sales fall increase, with the 4pc decline in the first quarter accelerating to 6pc in the second. Asia-Pacific, however, returned to growth, with sales up 2pc in the second quarter after a 3pc fall in the first three months of the year. A pick up is expected in the second half - but this could be derailed by a number of factors. The UK business correlates closely with UK manufacturing output. UK purchasing managers" index (PMI) data, announced yesterday, was weaker than expected, falling to 48.4 from an upwardly revised 49.6 in August. Any reading below 50 represents a contraction in the manufacturing sector. There have been other signs of weakness across the world, such as a contraction in Chinese manufacturing, which could end up delaying the group's return to sales growth. While Electrocomponents cannot do anything about the macro backdrop, it is employing self help. There are a number of initiatives that aim to boost margins in the second half of the year as well as a restructure to slash costs. This includes reducing customer discounts where agreed volumes have not been achieved. The re-organisation of its global business is expected to shave between £3m and £4m a year from costs. Questor said hold in July when the shares were at 208.7p because it appeared sales growth was slowing. The shares rose as high as 240p after that tip but are now a touch below that level after the recent falls. Electrocomponents is trading ahead of its peers. Its model of geographic expansion and a lower-cost internet-based sales distribution channel are sound. However, the macro backdrop at the moment is tough. Trading on a 2013 earnings multiple of 11.6 falling to 10.5 and yielding a prospective 6pc, Questor maintains its hold rating.