Search by company

Farnell retains robust margins

Edited by the Electronicstalk editorial team Dec 17, 2002

Premier Farnell has revealed its results for the third quarter and nine months ended 3rd November 2002.

Premier Farnell has revealed its results for the third quarter and nine months ended 3rd November 2002.

Group sales in the nine months were GBP 581.8 million.

Sales were up 0.7%, compared with last year, including the benefit of Buck and Hickman, after taking into account the impact of exchange rates.

Third quarter sales were GBP 189.2 million.

These sales were up 0.2% compared with last year and 1.2% above the second quarter.

Gross margins remained robust in all businesses and costs continue to be tightly controlled.

Operating profits for the first nine months were GBP 63.2 million (2001/2: GBP 67.4 million) before goodwill amortisation, with an operating margin before goodwill amortisation of 10.9% (2001/2: 11.1%).

In the third quarter, group operating profits were GBP 21.3 million (2001/2: GBP 23.0 million), up from GBP 19.5 million in the second quarter.

Group operating margin of 11.3% in the third quarter compared with 10.4% in the second quarter and 11.5% in the third quarter last year.

The operating margin in the Marketing and Distribution Division was 11.4% in the nine-month period (2001/2: 11.5%) and 11.8% in the third quarter (2001/2: 11.3%).

Weakness of the US dollar against sterling in the first nine months resulted in an adverse currency translation effect on turnover and pre-tax profit of GBP 13.1 million and GBP 0.4 million, respectively and of GBP 6.8 million and GBP 0.2 million in the third quarter.

The net interest charge for the first nine months of GBP 11.8 million (2001/2: GBP 11.3 million) was covered 5.4 times by profit before interest, goodwill amortisation and loss on disposal of a business.

Profit before tax and goodwill amortisation in the third quarter was GBP 17.3 million compared with GBP 18.7 million in the same period last year.

For the nine-month period, profit before tax was GBP 51.4 million (2001/2: GBP 56.1 million), before goodwill amortisation and loss on disposal of a business.