Premier Farnell sees rise in profits

The Leeds-based company, which in July issued a profit warning after its sales felt the effects of a global economic slowdown, said adjusted pre-tax profits for the three months to the end of July rose 0.9 per cent to £23m.

First half pre-tax profits rose 6.6 per cent to £47.1m, while the group also maintained its interim dividend at 4.4p per share.

The firm, which sells products ranging from batteries and chargers to computer consumables and security products in Europe, North America and Asia Pacific, said a two per cent fall in August sales indicated that the economic environment was still tough.

“Across the global markets there was some significant movement around Purchase Managing Index (PMI) and some contraction in manufacturing activity. It could just be seasonal movement, July to August, it’s very hard for us to tell. We will focus on our growth margin and cost plans, while investing in the business,” said chief executive Harriet Green.

Investec analyst Guy Hewett, who retained his ‘hold’ rating, said: “First half results are slightly better than we feared but continue to highlight a difficult outlook, with August sales down two per cent.”