5th Feb 2015 07:57
LONDON (Alliance News) - Premier Farnell PLC on Thursday said it expects to report an increase in sales for its full financial year on the back of higher sales in the fourth quarter, but said its operating margin has come under pressure.
The group said its average sales per day for the year to February 1 rose 3.3% overall. Sales in the second half rose by the same amount, with third quarter sales up 2.7% but fourth quarter sales increasing 4.4%.
The FTSE 250-listed technology company said the growth in the second half was driven by its element14 and its CPC & MCM distribution arms. It said its Akron Brass business performed ahead of expectations in the second half, with its second half sales falling 3.9% against strong comparables.
The group added it sold down its existing inventory of the Raspberry Pi processor in the fourth quarter, ahead of the launch of the Raspberry Pi 2. Sales of Raspberry Pi were only slightly lower year-on-year in the fourth quarter.
Premier Farnell said its gross margin came under pressure in the quarter, due to strategic initiatives and discounting on the first Raspberry Pi model, and it expects its second-half gross margin to decline around 1 percentage point. It expects its full-year operating profit to be around GBP86-88 million.
By Sam Unsted; [email protected]; @SamUAtAlliance
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