Premier Farnell pledge to perform even better
ELECTRONIC components distributor Premier Farnell today said it had “outperformed difficult markets” as it unveiled increases in full-year pre-tax profits and turnover but chief executive Harriet Green has pledged to make the business perform even better.
The Leeds-based group said sales via the web and expansion of its international markets have both combined to deliver sales growth with pre-tax profits up 2% to £72.8m and revenue up 1% to £804.4m in the 12 months to February 1.
The group said that it would carry out “further restructuring actions” to cut operating expenses by 2% and this will cost £4m in the first quarter of this year.
It now sells 35% of products in its marketing and distribution division on the internet and 51% of Farnell Europe’s sales on on the web while fourth quarter sales in Eastern Europe were up 58% and Chinese sales were 15% up while there was a 24% rise in sales in India.
The group said it maintained it gross margin at 39.6% despite the more challenging conditions.
Chief executive Harriet Green, said: “We are continuing to drive our strategy despite the more challenging markets. Whilst we are encouraged by our strategic progress and our outperformance of these markets, we are dissatisfied with our business results.
“With our strategy, the strength of the Premier Farnell team and our ability to capitalise on the opportunities in the supply chain, we can perform better; all supported by our strong cash generation and further investments in our proposition and inventory position.”
The group is paying a final dividend of 5.2p per share to give a full year dividend of 9.4p, compared to 9.2p last year.
