29th Jul 2015 07:09
LONDON (Alliance News) - Premier Farnell PLC Wednesday warned it now expects its adjusted operating profit for its first half to be down 10% compared to the previous year, hit by slowing sales, challenging market conditions and the continued weakness of the euro.
As a result it now expects adjusted operating profit to be down around 6% compared to the previous year.
The FTSE 250-listed technology products and services company said this guidance excludes a potential GBP2.0 million provision release related to the successful outcome of a potential legal action.
Premier Farnell said sales per day momentum has slowed "significantly" since its first quarter update in June, particularly in the US and UK.
Group sales growth per day in the second quarter is expected t be 1.2%, down from the 5.4% it delivered in the first quarter.
"Despite implementing a number of initiatives to drive sales and expand our gross margin, we have been impacted by a slowdown in and a more difficult trading environment since we reported our first quarter numbers," said Chief Executive Laurence Bain in a statement.
"In light of these challenging trading conditions, the board has recently commenced a review of the group's operations and will provide an update on this review in September as part of the interim results announcement," Bain added.
Shares in Premier Farnell are down 10.4% at 149.33 pence Wednesday morning, the biggest faller on the FTSE 250.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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