A weak euro and high sales of the new lower-margin Raspberry Pi2 were blamed for eroding profits at Premier Farnell (PFL), in a trading statement that sent its shares sliding 5 per cent. Those factors caused gross margins to decline 1.2 percentage points against the final quarter of last year.
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Sales of the second edition Raspberry Pi, the credit-card sized mini-computer designed for school children, drove group revenue growth of 5.4 per cent. That helped offset the losses made in Premier's oil-and-gas-exposed Akron Brass unit, yet also contributed towards a slump in profits.
But management remains confident that £12m of cost savings, coupled with measures to enhance the website, will steadily see profits stabilise.
