Premier Farnell says 2011 starts well

ELECTRONICS distributor Premier Farnell said 2011 had started strongly as it posted an expected 70 percent jump in 2010 profits, helped by strong growth in emerging markets.
By The Newsroom
Published 17th Mar 2011, 08:43 BST

“Sales momentum from the fourth quarter has continued into the new financial year,” the company said on Thursday, adding that group sales were up eight per cent year on year.

“The group is well positioned to deliver sales growth in the new financial year that is in excess of our targeted level of sales growth,” it added.

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Leeds-based Premier Farnell said while the extent of disruption to the electronics supply chain by the recent tsunami in Japan was not yet fully understood, its Japanese customer base and direct supply chain were very small.

The company, which sells items ranging from batteries to microchips, reported 2010 underlying pre-tax profits of £93.3m, in line with analysts’ average forecasts of £93.8m.

Sales at Premier Farnell, whose customers include Philips, Microsoft and Nokia, rose 21 per cent to £990.8m, a touch above analysts’ average forecast of £980.7m.

Shares in the company closed at 276.6p on Wednesday in London, valuing the business at just over £1bn.

Related topics:LeedsJapanMicrosoft