Premier Farnell eyes growth

The Leeds-based group, which issued a profits warning in July after sales were hit by the global economic slowdown, said adjusted pre-tax profits for the year to January 29 were £88.5m, down 1.3 per cent on last year and below a consensus of £90.7m.

Fourth-quarter profits dropped 11 per cent on last year to £20.3m and followed a seven per cent drop in third-quarter earnings. Sales in the quarter, however, were up 1.2 per cent from this year’s third quarter.

“We remain cautious on the economic outlook as the market continues to be uncertain and the nature of our business gives us limited forward visibility,” said chief executive Harriet Green.

“However, as comparators become easier from the middle of the year and we benefit from a 53rd week, we expect growth to return this year.”

Premier Farnell sells products such as batteries, computer consumables and security products to engineers in over 100 countries through operations in Europe, North America and Asia Pacific.

Last month rival supplier Electrocomponents said sales growth had slowed from 14 per cent in its first quarter to four per cent for the four months to January 31 against a backdrop of tough global economic conditions and weak consumer confidence.

Shares in the FTSE 250 firm closed at 228.8p on Wednesday, down 25 per cent on a year ago, valuing the business at around £800m.