Strong sales and improving market conditions boost Premier Farnell
PREMIER Farnell, the Leeds-based electronics component firm, has seen a return to profit following strong sales and improving market conditions.
The firm reported today that total pre-tax profits for the first quarter of its financial year ending January 30, 2011 rose 147% from £9m to £22.2m.
Underlying earnings per share climbed to 4.4p in the period compared to 2.4p. Revenue increased from £204.3m to £244.9m.
Premier Farnell said that the strength and growth opportunities inherent in its strategy combined with improving market conditions had driven year-on-year group sales growth by 19.6%.
The return to positive sales growth in MDD Americas in February accelerated throughout the quarter, representing an upward trend in sales per day for the past 11 months.
The division’s first quarter sales grew 17.0% and underlying operating profit grew 121.4%, with the business also seeing a significant year on year improvement in gross margin.
The firm’s global electronic design engineering (EDE) sales have continued to significantly outperform its global MRO sales.
Its developing international markets in Greater China, India and Eastern Europe continue to deliever strong growth with sales up 112.8%, 74% and 75.6% respectively.
Harriet Green, group chief executive, said: “The successful execution of our strategy together with increased activity levels within the global electronics supply chain has seen the positive sales trends from February continue throughout the quarter, with group sales growing 20% year on year.
“This sales performance, combined with the operational leverage inherent in our business, has resulted in year on year underlying operating profit growth of 45%.”
