Premier Farnell on brink of FTSE 250 exit
LEEDS-BASED firm Premier Farnell is on the brink of leaving the FTSE 250 after it had £200m wiped off its market value in the last three months.
Last night its shares closed at 128p, down from 192p three months ago, reducing its value by one-third.
The big fall came last month when the Raspberry Pi manufacturer, which has 4,500 employees in 36 countries, told the stock market it expected adjusted operating profit in the first half would be down approximately 10%. Weeks later chief executive Laurence Bain was shown the door after three years in the role.
Premier Farnell share performance in the three months to September 1, 2015 (source: Google Finance):
Speaking at the time of Mr Bain’s departure, Premier Farnell chairman Val Gooding said: “During his time as CEO Laurence has led the company’s transformation to a web-based business, developed a global operating model and management structure, and introduced an innovative and differentiating strategy.
“However, whilst these initiatives provide a solid platform for the future, the company’s recent results have been disappointing and the Board has concluded that the time is right for a change of leadership.”
Premier Farnell will find out its fate later today after the FTSE committee meets to confirm the make-up of the FTSE 100 and FTSE 250 lists.
Earlier this week there were rumours that Bradford-based supermarket brand Morrisons would also lose its position in the FTSE 100, but it is unlikely that shareholders will have to face that disappointment as there are other underperforming firms such as Weir Group that are likely to be replaced first.
