Raspberry Pi maker cuts dividend

'‹Electronics distributor Premier Farnell, the company behind the Raspberry Pi mini-computer,'‹ has slashed its final dividend for the full year to 3.6p per share as it expects difficult trading conditions to continue in North America and the UK.
Tough UK and US markets hit Premier FarnellTough UK and US markets hit Premier Farnell
Tough UK and US markets hit Premier Farnell

The Leeds-based firm paid ​a ​10.4​p dividend in the previous year.

The company​ ​said ​US ​sales per day ​fell 6.9 per​ ​cent ​in the third quarter and by​ 5.1 per​ ​cent in the fourth quarter​.

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The Americas accounted for nearly 35 per​ ​cent of the company's revenue for the financial year ​to January​ 31.

Full-year revenue rose to ​£​982.7​m from ​£​960.1​m a year ago.

Analyst ​Robin Speakman at Shore Capital said: ​"​The specialist electronics distributor has announced its final results calling time on a very difficult year for the company with few if any highlights, in our view.

​"Revenues were £1m above our forecast at £983m. Gross profit was on target at £338m​.

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​"​EBITA was also in-line at £73m​ and adjusted pre-tax profit missed our target by £1m at £57m​.​

​"​The current year sees the impact of the sale of the Akron business, this is set to see earnings and margins come under further pressure, but with a clear balance sheet benefit. The Premier story is now focused upon remedial action on the operating margin, restructuring the company for better performance and a return to growth.

​"​We fear that material further restructuring charges will potentially be levied over the next two years.​"

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