Stock market briefs: Premier Farnell, Dart Group, Costain
PREMIER FARNELL, the Leeds-based technology distributor, is looking to the future after completing an operational review that will help shape its future.
It also expects to complete a deal for the sale of fire equipment manufacturer Akron Brass in the first quarter of next year, after it attracted “considerable interest”.
The Raspberry Pi manufacturer exited the FTSE-250 in September after its share price collapsed, losing one-third of its value in three months, resulting in chief executive Laurence Bain leaving the company.
A sales update shows a 0.5% improvement in the third quarter while the operational review has identified annualised cost savings of £19m.
Mark Whiteling, Premier Farnell’s interim chief executive, said: “Our results in the quarter are a reflection of the challenging conditions in the UK and US, however we are encouraged by the strong growth we continue to see in the APAC region.
“The outcome of the operational review, announced today, has identified a number of efficiency and margin improvement initiatives which will position the group to deal with the margin pressures that it has experienced in recent times. The board is confident that the combination of these initiatives will provide the platform for future growth.”
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JET2.COM owner Dart Group has increased its order of aircraft from Boeing to 30, adding three more to the figure announced in September.
The list price of the transaction for the additional Boeing 737-800NG aircraft is £193m, although the group said it has “negotiated significant discounts” on that price.
The Leeds-based group is investing in order to meet the future anticipated growth of its leisure travel business as well as planned fleet replacement.
Last month Dart Group announced it had increased first-half revenues by more than £100m to £1.02bn and doubled pre-tax profits to £146m.
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HIGHWAYS ENGLAND has awarded a joint venture that includes Costain with two support contracts worth £750m over five years.
The contracts cover the long-term maintenance and development of highways on the trunk road network for Yorkshire and Humberside, and Sussex and Kent.
The five-year agreements have the potential for a three-year extension.
Andrew Wyllie, chief executive of Costain, said: “These awards demonstrate our established reputation for the provision of complex asset support services based on our proven ability to provide collaborative, integrated teams for the highway market and also reflect our focus on building long term partnerships with blue chip customers.”
