Premier profits fall

​Premier Farnell, a distributor of small electronics and electronic parts, reported a 4.5 per cent fall in first-half pre-tax profits following subdued sales in its marketing and distribution division in the Americas and Europe.

​The Leeds-based group said p​re​-​tax profit for the six months ended ​to August ​3 fell to ​£​36.4​m from ​£​38.1​m a year earlier.

Revenue fell 3.8 per ​cent to ​£​479.3​m.

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The marketing and distribution business accounted for 80 per ​cent of Premier’s total turnover last year.

Premier Farnell sells roughly half a million products ranging from batteries to CCTV cameras in more than 100 countries through its websites which include Newark, Farnell and element 14.​

The group’s CEO Laurence Bain said: “The group made progress in the first half of 2015 towards achieving its sales growth target of six per cent, whilst maintaining stable gross margin.

“We are on track with our planned investments to develop our design services business and to further enhance our innovative eCommerce channels and, in June, we commenced the reorganisation of our business into a more efficient, global enterprise.

“We continue to expect a year of further progress in achieving the group’s strategic goals with our full year expectations remaining unchanged. Following the completion of the planned strategic investments over the remainder of this year, we believe that the group will be well positioned to accelerate its top-line growth and deliver profitability in line with our target.”