12th Jun 2014 08:02
LONDON (Alliance News) - Premier Farnell PLC Thursday said it will restructure its business for an estimated cost of GBP8 million to secure yearly cost savings of GBP6 million to GBP8 million.
However, the technology-products distributor said the cost benefits will be minimal in the current financial year, with the full benefit anticipated for the 2016 financial year.
Premier Farnell said it will move its marketing and distribution businesses in the Americas, Europe and Asia Pacific into a new, integrated global structure.
It now will organise its business by function, which it says will help facilitate "better sharing of expertise and resources across the regions".
"By evolving the way that we work, as one global team, Premier Farnell is well placed to accelerate the execution of our strategy to deliver profitable growth," Chief Executive Laurence Bain said in a statement.
Bain will lead the new executive team, including Chief Financial Officer Mark Whiteling, global functional leaders for sales and marketing, product and suppliers, supply chain, and technology, alongside the support functions of human resources and legal.
The current leadership for its Akron Brass and other distribution businesses, CPC and MCM, will remain in place and continue to directly report to Bain.
The company also said it was continuing to trade in line with its forecast at the time of its interim management statement in May. At that time the company maintained its expectations for the full year, upon seeing sales per day rise in its first quarter ended May 4.
Shares in Premier Farnell were trading up 2.2% at 213.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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