Electrocomponents said today its first-half profit was likely to be a third lower than last year due to weak sales.
"The board expects that group profit before tax, and one-off costs for the six months ending 30 September 2005 will be around 30 percent below last year," the company said.
The firm, which sells 300,000 electrical and industrial parts from nuts and bolts to computer cables, said the decline in UK sales had accelerated to minus 6 percent in September from minus 3 percent in the period to the end of August.
Electrocomponents said year-on-year gross margins had fallen by around 1.5 percentage points due to realigned selling prices, customer discounts and its product mix.
"This decline has occurred throughout most of the group but the biggest impact remains in the UK," the company said.
It added that growth remained strong in North America, Asia and smaller European markets while sales in France, Germany and Italy were continuing to show signs of recovery.
"The board's view of the medium-term prospects for the group has not changed which supports the maintained level of dividend for the next three years," it added.
Shares in Electrocomponents closed at 260 pence on Monday, valuing the company at just over 1.1 billion pounds.
On May 25, the company said it planned to maintain its dividend over the next three years after posting a 2 percent fall in annual profit.