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 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, on track for their worst day in five years.

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