Electrocomponents Plc (LON:ECM) told investors that the US tax changes are expected to have a minimal impact on the group’s effective tax rate for March 31.
The company noted that it previously guided that the tax rate would be in line with the effective rate in the first half which was 28%.
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Nonetheless, the company also said it expects that the changes will result in a non-cash exceptional tax credit as a result of the revaluation of deferred tax balances.
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Looking to the upcoming financial year, to end March 2019, Electrocomponents anticipates that the changes will reduce the group’s effective tax rate percentage to the mid-twenties.