Electronic components distributor Premier Farnell (PFL) mightn't set the world alight with these results, but there were still plenty of positives to take from what was ultimately a year of transition. For example, strip out currency effects and underlying sales per day grew 3.3 per cent, representing the highest level in four years, achieved against a tough economic backdrop.
Take the UK out of the equation, which was impacted by manufacturers off-shoring and a weak US dollar earlier in the year intensifying competition, and constant currencies sales (CCS) in Europe grew 5.6 per cent. Premier’s efforts to grow market share in Asia Pacific, meanwhile, yielded CCS growth of 16.1 per cent, led by encouraging progress in China and India. However, adjusted operating margins fell 40 basis points to 9.2 per cent, constrained by the effects of costly initiatives to enhance the group’s customer proposition and the discounted sale of old Raspberry Pi credit-card sized computer models.
Cost-cutting initiatives are being put in place to improve performance. Management have proposed a global restructuring drive designed to generate savings of £4m this year, and another £8m in 2016.
Numis expects adjusted pre-tax profit of £78.3m for 2016, giving adjusted EPS of 14.5p (from £74m and 13.8p).
| PREMIER FARNELL (PFL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 187p | MARKET VALUE: | £694m | |
| TOUCH: | 186-187p | 12-MONTH HIGH: | 242p | LOW:147p |
| DIVIDEND YIELD: | 5.6% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 21p* | NET DEBT: | 332%** | |
| Year to 1 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 991 | 93 | 18.3 | 10.4 |
| 2012 | 973 | 105 | 21.2 | 10.4 |
| 2013 | 952 | 69 | 13.3 | 10.4 |
| 2014 | 968 | 75 | 14.0 | 10.4 |
| 2015 | 960 | 69 | 12.9 | 10.4 |
| % change | -1 | -8 | -8 | - |
Ex-div: 27 May Payment: 25 Jun *Includes intangible assets of £87.5m, or 24p a share **Including preference shares | ||||
