Premier Farnell final quarter sales slip

Electronics components supplier Premier Farnell said that market conditions remain tough as it reported a three per cent decline in fourth quarter sales.

Electronics components supplier Premier Farnell said that market conditions remain tough as it reported a three per cent decline in fourth quarter sales.

Adjusted operating profit for the 13 weeks ended February 3rd fell 3.4% to £23.9m while total revenue fell to £239.3m after a weak performance from MDD Americas.

Adjusted pre-tax profit fell 7.9% to £18.7m while adjusted earnings per share declined 10% to 3.6p.

Chief Executive Laurence Bain said: "Market conditions remained challenging during the quarter and fourth quarter sales per day declined 3.0% year on year but were in line with the third quarter. This reflected sequential growth from all our segments other than MDD Americas where actions taken have begun to realise results."

The group said gross margin continued to be managed in line with the market conditions, as it continues to focus on cost saving. Its cash performance remains strong, it said, despite difficult market conditions

Looking ahead it said: "As we seek to optimise our business performance, we will continually assess our strategic progress and look to evolve this where appropriate."

"Whilst we have limited visibility and current market conditions continue to be uncertain, the new financial year has started positively and we remain confident in our ability to implement our strategic vision and optimise the business' performance to grow our active customer base, gain market share and drive financial performance."

The board has recommended a final dividend of 6.0p per share, unchanged from last year.

CJ

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