Premier Farnell has that good feeling about growth

The Leeds-based company, which issued a profits warning in July after sales were hit by the global economic slowdown, said adjusted pre-tax profits fell 1.3 per cent to £88.5m in the year to January 29.

Chief executive Harriet Green said: “The reason we feel good about growth is we’ve done really well at taking share in tough industrial markets. We’re cautious about markets, we’ve no idea what will come out, but we’re encouraged we can drive growth.

“We have delivered pretty much the same level of profit this year in markets much tougher than last year,” she added.

Fourth quarter sales fell by 1.9 per cent from last year’s record levels and increased by 1.2 per cent on the third quarter.

This was better than the market. The Semiconductor Industry Association said global sales fell by 8.8 per cent in the three months to January.

Premier Farnell, which sells products such as batteries, computer parts and security products to engineers in over 100 countries through operations in Europe, North America and Asia Pacific, said sales in its core European market were up five per cent on last year, helped by the growing e-commerce business.

“We’re very pleased with our performance in the UK,” said Ms Green. “We’ve driven a lot of market share in the UK and we’ve done very well at taking share in Europe.”

While full-year sales in the Americas fell by 1.5 per cent and they were down by three per cent in Asia Pacific, all regions improved in the fourth quarter.

Premier believes its return to growth will be boosted by strong demand in emerging markets, particularly China, Eastern Europe, Korea, Thailand and India.

The group made 55 per cent of fourth-quarter sales through e-commerce, up 4.2 percentage points year on year, and 75 per cent of its European business is now carried out through the web.

Premier Farnell is one of two exclusive distributors of the new British-designed credit card-sized computer called Raspberry Pi, which will go on sale next week.

Analyst Robin Speakman, at Shore Capital, said: “Emerging territories have continued to perform well in the round, still delivering 14 per cent growth in the fourth quarter. E-commerce revenues likewise continue to grow although they are now slowing as online matures.

“From May this year, the like-for-likes should get easier in our view, with a 53rd week this year and some improvement in the US economy, this should underpin the trading performance.”

Last month rival supplier Electrocomponents said sales growth had slowed in tough global economic con- ditions.

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