Product category:
Capacitors
News Release from: Farnell
Edited by the Electronicstalk Editorial
Team on 11 September 2003
Reduced costs pay off for Farnell
Premier Farnell has published its results for the second quarter and half year.
Premier Farnell has published its results for the second quarter and half year Group sales in the first half of the year were GBP 390.6 million (2002/3: GBP 392.6 million)
This article was originally published on Electronicstalk on 8 Nov 2004 at 8.00am (UK)
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Sales per day increased 3.1%, compared with the same period last year, for continuing businesses at constant exchange rates.
Group second quarter sales per day were up 2.8%, compared with the same period last year.
North American and European markets were generally weak and continued to reflect subdued customer demand.
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The gross margin for the group improved slightly to 40.3% in the second quarter from 40.1% in the first quarter, benefiting from effective management action and the stronger euro.
The gross margin in the first half of 40.2% was below the previous year (40.9%) due to the start up of the two major contracts in the UK with Vauxhall and Rolls-Royce, and customer promotional activity in North America.
Operating profit in the first half was GBP 32.7 million (2002/3: GBP 40.6 million), producing an operating margin of 8.4% (2002/3: 10.3%).
Adjusted operating profit, before the GBP 2.4 million one-off costs of rebranding and GBP 1.3 million of goodwill amortisation, was GBP 36.4 million (2002/3: GBP 41.9 million), producing an operating margin of 9.3% (2002/3: 10.7%).
The reduction includes the impact of additional depreciation, following the implementation of Siebel customer relationship management (CRM) and related software in the UK and North America, and the investment in the Liege distribution centre in mainland Europe.
Weakness of the US dollar against sterling in the first half resulted in an adverse currency translation impact on sales of GBP 14.8 million, offset by a favourable euro effect of GBP 6.4 million, resulting in a net adverse impact on sales of GBP 8.4 million.
The net effect of the weak dollar and the strong euro against sterling resulted in a beneficial currency translation impact on profit before tax in the first half, of GBP 0.4 million.
Net interest payable in the first half was GBP 7.4 million and was covered 4.9 times by operating profit before one-off rebranding costs and goodwill amortisation.
Profit before taxation in the first half of the year was GBP 25.4 million (2002/3: GBP 27.9 million).
Profit before taxation, goodwill amortisation and gain/loss on business disposals was GBP 26.6 million (2002/3: GBP 34.1 million) after charging the GBP 2.4 million one-off costs of rebranding in the first quarter.
Earnings per share in the first half were 3.9p (2002/3: 3.6p).
Adjusted earnings per share, before rebranding costs, amortisation of goodwill and gain/loss on business disposals were 4.7p (2002/3: 5.4p).
The board is declaring an interim dividend of 4.0p per share (2002/3: 4.0p) to be paid on 24th October 2003 to shareholders on the register on 26th September 2003.
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