Electronics giant reports double digit growth following major investment programme

Premier Farnell has seen global revenues rise by 11.1% year-on-year to $1.5bn for the year ending 1 July 2018.

The Leeds-headquartered electronics giant, which operates as Farnell element14 in Europe, delivered consecutive year-on-year growth each quarter at a global and regional level, finishing with a 13% rise in sales for Q4.

Alongside this growth in sales, gross margins remained stable across FY18 and the acquisition synergies benefitted operating expenses, delivering an increase in operating income year over year since the date of acquisition by Avnet.

Chris Breslin, President of Premier Farnell said: “This is a significant result. We have built real momentum, delivering growth every quarter, in every region, and 13% year over year growth globally during the fourth quarter.

“As the Development Distributor, it is our aim to be there when it matters, helping customers develop their products and businesses, and supporting the development of the next generation of engineers.”

Premier Farnell’s financial performance was supported by ongoing investment in the business.

$100m was injected in additional inventory during the year, adding 22 new suppliers, increasing depth of product offering and providing customers with greater access to new product introductions and established product offerings.

During the year, the company also announced a major investment in new warehousing capabilities in Leeds, which will be the largest ever warehouse development in the Leeds City region.

The distribution centre is scheduled to be fully operational by late 2019/early 2020, when it will supply Premier Farnell’s network of eight other warehouses across the globe.

Breslin added: “The significant investment we have made in the business during this year – both in inventory and the development of new relationships with supplier partners, has supported this result.

“The ongoing take-up of the BBC Micro:bit as an education tool has also continued and we have supported new programmes in Canada and Croatia. As we look forward, we are extremely positive about the opportunities for the business.”

Most recent suppliers added to Premier Farnell’s supplier network include IDEC and Klein Tools, building on the addition of Xilinx, Nordic Semiconductor and Arduino earlier in the year.