Premier Farnell half-year profits down 13.7%; warns on full year
Technology product distributor Premier Farnell reported a 13.7% fall in interim pre-tax profits to £30.6m as it warned that slowing momentum would mean the company's second half operating profits coming in at lower than forecasts.
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The company said full year adjusted operating profit was now expected to be in the range of £73m to £77m.
For the half-year, underlying sales grew 2.9% year on year, and adjusted operating profits were £41m, down 9.9% year on year. As part of its strategic review the company said it would now refocus on the “fundamentals of distribution: product, pricing and proposition".
It said it has taken the decision to sell fire-fighting equipment maker Akron Brass and will stop direct operations in Brazil “due to sub-optimal returns and high costs of operation “.
Chairman Val Gooding said Akron was an "excellent business", but did not fit strategically within the portfolio given the group’s refocus on its core distribution activities.