That’s more like it! Distribution and especially the high service sector, received a timely boost as Premier Farnell delivered an 8.4% increase in full year profits to £74.8m from £69m in 2012/2013. Revenues were £968m, a 2.6% increase year on year.
The distributor looks to have the wind in its sails too, reporting a positive start to the new financial year despite the adverse weather (snow and more snow) in north America.
Asia/Pacific supplied much of the momentum racing to a 12.4% increase in the year including a leap of 14% in the second half of the year. China and India performed particularly well and sales also accelerated in Eastern Europe.
Laurence Bain, Premier Farnell’s Chief Executive Officer commented, “We have made important strategic progress this year as we position the business to deliver enhanced financial performance. We have made investments to develop our core customer proposition and the successful integration of Embest, acquired in 2012, has given us technological capability beyond that of any other high service distributor. Today’s announcement that we have agreed to acquire AVID Technologies will see us develop this expertise even further. By engaging more closely with suppliers and customers at the front end of the product development cycle, we are extending our model and developing competitive differentiation in high service electronics distribution as we become a destination for suppliers and customers across the entire electronics product lifecycle.”
“Our strategic investments, along with an improving market backdrop, have already begun to positively impact our growth rates, delivering improving Group sales per day growth through the second half of the year,” he added. “ Focus on optimising performance saw the Group’s industry leading operating margin remain stable through the year and second half adjusted EPS increased by 4.3% compared to last year.”
“The new financial year has started positively despite the adverse weather conditions that affected North America’s performance in February,” Bain reported. “As we consider the outlook, investments in our strategy will further increase our capability at the front end of the product development cycle and accelerate the development of our online customer experience.”
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