9th Dec 2010 07:00
Premier Farnell plc 9 December 2010 Results for the Third Quarter and Nine Months ended 31 October 2010 of the Financial Year ending 30 January 2011 Key Financials £m Q3 Q3 Q3 9M 9M 9MContinuing operations 10/11 09/10 growth 10/11 09/10 growth(Unaudited) £m £m (a) £m £m (a) Revenue 251.3 199.8 23% 748.3 587.8 24% Underlying operating profit 28.3 18.4 49% 83.8 51.0 55% (b) Total operating profit 28.3 15.6 75% 83.8 49.7 57% Underlying profit before tax 23.6 13.9 70% 69.6 37.6 85% (b) Total profit before taxation 23.6 11.1 126% 69.6 36.3 92% Underlying earnings per 4.6p 2.6p 77% 13.7p 7.3p 88% share (b) Basic earnings per share 4.6p 2.1p 119% 13.7p 6.9p 99% Free cash flow (c) 13.9 20.3 -32% 33.4 59.9 -44% Financial HighlightsThe momentum from the prior quarter has continued into the third quarter withGroup sales growing 23.3% and Group operating profit up 48.5%, despite tougheryear on year comparators.
MDD sales grew 25.2% year on year, with the sales momentum at MDD Americas accelerating in the third quarter where sales grew 22.1% year on year and 1.6% on the prior quarter.
MDD Europe's sales grew 34.4% year on year, with third quarter sales per day atthe highest ever level achieved by the business. Strong growth in Asia Pacifichas continued with sales up 31.0% year on year.Gross margin has improved for eight consecutive quarters, up 0.3 percentagepoints on the prior quarter to 41.1%. Gross margin has now remained stable fortwenty consecutive quarters, a performance unrivalled in the electronicsdistribution industry that is indicative of the value that customers attributeto our service.Group third quarter underlying return on sales was 11.3%, up 2.1% year on year,with North America's underlying return on sales doubling year on year.Excluding the £2.8 million of one-off incremental operating expenses incurredin the third quarter of this year, the Group's underlying return on sales was12.4% which is within our target range of 12%-15%. Underlying earnings pershare grew 76.9% year on year.
Operating cash conversion in the quarter was 99.6%, as our strong cash generation funded the continued targeted investments in inventory.
Strategic Highlights
All of our Asia Pacific businesses were rebranded as element14 in the quarter,taking an evolutionary step forward in our transformation to revolutionise ourAsia Pacific proposition through the fusing of commerce, community and businessunder a single brand.
Our global EDE sales grew 41.0% year on year, a 21.2 percentage point outperformance of the wider market, and our MDD active customer base grew 7.6% year on year. Both clear indications of our market share gains.
The strength and scale of our element14 community has led to over 400,000 customers visiting the site in the quarter, with the purchase conversion rate for customers visiting element14 16.6% percentage points higher than the conversion rate on our global transactional websites.
Our EDE sales in the third quarter accounted for 52.1% of sales from MDD Europeand Asia Pacific and MDD Americas. In North America progress to increase salesmix towards the EDE sector continued, with EDE sales now accounting for 38.1%of the region's total third quarter sales.Third quarter MDD web sales grew 46.0% year on year, with eCommerce accountingfor 48.1% of MDD sales. eCommerce in Europe and Asia Pacific accounted for63.1% and 55.6% of sales, respectively. Our transition to the web in NorthAmerica continued to accelerate in the quarter with eCommerce accounting for35.8% of sales.
Sales from our developing markets continue to grow strongly and for the quarter sales in Greater China grew 83.2% year on year. Sales in India and Eastern Europe grew 55.0% and 71.0% year on year, respectively.
After exceeding the company's employee engagement targets, the Group was accepted into the Towers Watson High Performance Company Elite Group - characterised by industry leading levels of return on invested capital and employee engagement.
Commenting on the results, Harriet Green, Group Chief Executive, said:
"The momentum which delivered a ten year high in the Group's second quarterperformance has continued into the third quarter. Group sales grew 23% year onyear, which represents a 10 percentage point increase on the third quarter oftwo years ago, while sales per day for the month of October were the highestthey have ever been. This positive performance is a clear reflection of thebenefits associated with our business' transformation and the execution of ourstrategy for profitable growth. "The strong sales growth in the third quarter has continued into November wheresales were up 16% compared to November last year, which is when the Groupreturned to year on year growth following the downturn. The continuation ofthis strong momentum and the execution of our 1,000 day strategy gives theBoard confidence that the Group will deliver significant profitable growth forthe remainder of the financial year inline with its expectations and have goodsales momentum as we enter the new year."
For further information, contact:
Harriet Green, Chief Executive Premier Farnell plc +44 (0) 20 7851 Officer
4100 Mark Whiteling, Chief Financial Officer Andrew Lorenz Financial Dynamics +44 (0) 20 7269 (UK) 7291
Premier Farnell's announcements and presentations are published at www. premierfarnell.comtogether with business information and links to all other Group web sites, including element14our community website for electronic design engineers.
The 2010 Annual Report and Accounts is available online and can be accessed at www.premierfarnell.com/annualreport2010.
The results for the fourth quarter and financial year ended 30 January 2011 will be announced on 17 March 2011.
Notes:
Throughout this statement, in order to reflect underlying business performance,sales growth is based on sales per day for continuing businesses at constantexchange rates and for like periods, and growth in operating profit iscalculated at constant exchange rates, unless otherwise stated.Underlying operating profit, profit before taxation and earnings per share inthe prior year excludes restructuring costs of £7.6 million (Q1: £4.0 million,Q2: £0.8 million, Q3: £2.8million) and the one-off gain arising in the secondquarter of £6.3 million from the reorganisation of the Group's North Americanpension plans.
Free cash flow comprises total cash generated from operations, excluding cash flows related to restructuring, less net capital expenditure, interest, preference dividends and tax payments.
Premier Farnell plc THIRD QUARTER STATEMENT
Results for the Third Quarter and Nine Months ended 31 October 2010
of the Financial Year ending 30 January 2011
Premier Farnell, the leading multi-channel, high service distributor supporting millions of engineers and purchasing professionals globally, announces its results for the third quarter of the financial year ending 30 January 2011.
Chief Executive's Operational Overview
The momentum that drove a ten year high in our second quarter sales andoperating profit levels has continued in the third quarter where, despite thetougher year on year comparators, Group sales grew 23.3% and operating profitgrew 48.5%. In addition, Group sales were significantly above pre-recessionlevels, up 10.0% on the third quarter of two years ago while sales per day forthe month of October were the highest the Group has ever achieved. Our focus onthe higher margin Electronic Design Engineering (EDE) sector continues to drivea significant improvement in our gross margin which was 41.1% for the quarter,a 0.3 percentage point increase on the prior quarter. The value that customersattribute to our proposition ensures that the quality of business we attractremains high, which is reflected in this being the eighth consecutive quarterof sequential improvement in our gross margin, a clear industry differentiator.Our strategic focus to deliver profitable growth, combined with the benefit ofcost actions taken and the positive impact of our operating leverage, continuesto drive an increase in the Group's underlying return on sales. Excluding theimpact of the £2.8 million of one-off incremental operating expenses incurredin the third quarter of this year, the Group's underlying return on sales was12.4% which is within our target range of 12%-15%. During the quarter we launched the rebranding of all of our Asia Pacificbusinesses to element14. This evolutionary step is a milestone in ourtransformation that revolutionises our Asia Pacific proposition through fusingcommerce, community and content under a single brand. This move follows ourinvestments in Asia Pacific that have built the broadest locally held inventoryof technology products in region and strengthened our high service capabilitiesto offer an unrivalled next daydelivery proposition to almost every part of theregion, including 130 Chinese cities. These investments, together with thestrength of the element14 brand, will enable us to accelerate our growth inAsia Pacific as we target to double the size of the business as part of our1,000 day strategy. Since the launch of element14 across Asia Pacific, ourprogress has continued to be strong. Sales per day in ASEAN were at theirhighest in the month of October just one day after the launch and for thequarter sales in Greater China and India grew 83.2% and 55.0% year on year,respectively. These two Asian markets, our expansion into Taiwan, Thailand andSouth Korea and our significant growth in Eastern Europe, where third quartersales grew 71.0%, have been fundamental in driving our developing markets toaccount for 21.9% of Group sales, a 2 percentage point increase year on year. element14, as a global online community and as transactional businesses in AsiaPacific and in the US, is central to our strategy to focus on the highergrowth, more profitable EDE sector and the web as well as our ability to drivemarket share gains. Since we began our strategic transformation we haveincreased our share of the high service distribution market by an estimated 90basis points and over the last nine months our market share gains haveaccelerated. We have grown our share of the market by an estimated 30 basispoints over that period alone and in the third quarter our Marketing andDistribution Division's (MDD) active customer base grew 7.6% year on year. Ourgrowth in the EDE sector has contributed significantly to this increase inmarket share. In the third quarter our global EDE sales grew 41.0% year on yearwhile our EDE sales accounted for 52.1% of sales from MDD Americas and MDDEurope and Asia Pacific. This represents a significant outperformance of theglobal market, with the Semiconductor Industry Association (SIA) - indicativeof the EDE sector - reporting that global sales grew 19.8% year on year, forthe equivalent period. In addition, our MDD web sales grew 46.0% year on yearand eCommerce accounted for 48.1% of MDD sales, while in the quarter ourelement14 community and US store received over 400,000 and 257,000 customervisits, respectively. The element14 name continues to resonate within the EDEcommunity and in the third quarter the level of user generated content andcustomer participation grew 82.1% over the prior quarter. This reflects thestrong engagement levels within the community and with the click through rateto our transactional websites increasing 2.2 percentage points on the secondquarter, the strength of combining commerce and community is clear. Indeed, inthe quarter the conversion rate of customers visiting element14 then going onto purchase products and services was 16.6 percentage points higher than theconversion rate on our pure transactional websites. Third quarter sales within our MDD division grew 25.2% year on year and ourfocus on growing the business' profitability has driven the division's thirdquarter underlying return on sales to 12.5%, or 13.5% excluding the impact of £2.4 million of one-off incremental operating expenses incurred in the thirdquarter. This was led by the improvement in MDD Americas' underlying return onsales which was 8.0% for the quarter, a 1.2 percentage point improvement on theprior quarter as the business moves closer to achieving its short-term targetof exiting the year with a return on sales of between 9%-10%. Our salesmomentum accelerated in North America in the quarter. MDD Americas' sales grew22.1% year on year and 1.6% on the prior quarter, with the division's operatingprofit growing 145.2% year on year. EDE sales accounted for 38.1% of sales and,with year-to-date EDE sales growing 39.6% year on year, the business remainsfocused on delivering 40% of its sales from the EDE sector as we exit the year.eCommerce in MDD Americas' accounted for 35.8% of sales, a 3.8 percentage pointincrease on the prior quarter that reflects the division's focus onaccelerating its web transformation. In Europe sales grew 34.4% year on year,with third quarter sales per day at the highest ever level achieved by thebusiness. This record clearly reflects the strength and growth opportunitiesinherent in our strategy. Web sales in Europe grew 49.0% in the quarter andeCommerce accounted for 63.1% of European sales, while third quarter EDE salesgrew 47.4% year on year. In Asia Pacific sales grew 31.0% year on year in thethird quarter. eCommerce in the region accounted for 55.6% of sales and thebusiness is focused on leveraging the significant Search Engine Optimisation(SEO) benefits associated with a single brand, accelerating Asia Pacific'sdrive towards achieving the target of 70% of sales to come via eCommerce. Investment in innovation and our 1,000 day strategic initiatives continue todifferentiate our proposition. Through the power of the web and the element14community we have begun to use our own information and data to provide us withvisibility to new technologies that EDEs find most desirable, whichsubsequently drives many of our new product introduction decisions. Indeed, inthe third quarter we introduced 29,900 new esoteric EDE products globally,which were in addition to the 62,000 products we have added to our locallystocked product portfolio in Asia Pacific over the last six months. Our 1,000day program to enhance our legislative expertise has led to the launch of theindustry's most comprehensive electronics legislation information portal onelement14. Since the launch of the new portal, the average number of customersper day reviewing reference guides to complex and lengthy legislation andinteracting with discussion groups and blogs has grown by 233.3%. Our programmeto work more closely with universities all over the world has seen the launchof our own academia site within element14, element14 on campus. Subsequent tothe launch of element14 on campus, the site was adopted as a leading researchtool for students at two universities in Xi'an, China, a city that is at theheart of electronics education in China and that has an estimated 220,000students graduating from its universities each year. The embracing of the siteby these Chinese universities has been an important driver of registrants inthe vital education segment where we can begin building customer loyalty early. Our commitment to innovation is clear and in the quarter we released an onlinetelevision series, The Ben Heck Show, on element14. Following its release, TheBen Heck Show has driven significant interaction and engagement within thecommunity and element14's wider social media network. Since it's first airingthe show has been viewed over 300,000 times and has been "tweeted" on more than2,000 times to over 5.7 million "followers". As a high performance company eachyear we complete an all-employee survey to measure the levels of engagementwithin our organisation. This year our performance in the survey saw us exceedour employee engagement targets which has led to Premier Farnell being named inthe Towers Watson High Performance Company Elite Group. Premier Farnell joinstechnology leaders and other FTSE 100 and Fortune 100 organisations in thiselite group of companies, all of which were assessed by Towers Watson to havehigh engagement levels as well as an industry leading return on investedcapital.
Other Distribution Businesses
Third quarter sales at CPC grew 4.4% year on year, in part driven by thebusiness' commitment to customer acquisition, with its active customer baseincreasing 6.1% year on year. The number of customers visiting the CPC websitein the quarter grew 32.7% compared to the same period last year. This, combinedwith the continued migrationof existing customers to transact via the web andinvestment in online marketing activities has led to eCommerce accounting for35.9% of third quarter sales. Sales at MCM continue to improve and in the thirdquarter sales grew 11.8% year on year. The business has invested in significantwebsite enhancements around search and functionality and MCM's continued focustowards its higher margin private label product offering has led to salesgrowing 52.2% year on year for these products.
Industrial Products Division (IPD)
Third quarter sales at TPC were the highest the business has ever delivered,with sales up 41.8% year on year. TPC continues to embrace parts of the Group'sglobal strategy, and in the quarter the business' international sales per daygrew 53.4% on the prior quarter. The business continues to invest in talent andnew products as it looks to capitalise on opportunities within new marketsegments such as transportation and pulp and paper. Third quarter salesdeclined 3.0% year on year at Akron Brass. When compared to the wider marketthis represents a 4.1 percentage point outperformance as the global fireapparatus market continues to be impacted by tighter controls around governmentspending. Akron Brass remains focused on new product innovations to helpmitigate this negative impact and in the quarter 15.2% of sales came from thesenew products. This focus, combined with the ongoing internationalisation ofAkron's proposition has driven sales in China and Australia to grow 56.5% and75.1% on the prior quarter, respectively.
Outlook
The strong sales growth in the third quarter has continued into November wheresales were up 16% compared to November last year, which is when the Groupreturned to year on year growth following the downturn. The continuation ofthis strong momentum and the execution of our 1,000 day strategy gives theBoard confidence that the Group will deliver significant profitable growth forthe remainder of the financial year inline with its expectations and have goodsales momentum as we enter the new year. Financial Results RevenueNine MonthsSales for the first nine months were £748.3 million (2009/10: £587.8 million or£603.4 million at constant exchange rates). Sales per day increased by 24.1%.The average exchange rate for the US dollar against sterling was $1.54 (2009/10: $1.58) and the average exchange rate for the Euro against sterling was
Euro1.17 (2009/10: Euro 1.13).Third Quarter
Sales for the third quarter were £251.3 million (2009/10: £199.8 million or £204.0 million at constant exchange rates). Sales per day increased by 23.3% onthe prior year. The average exchange rate for the US dollar against sterlingwas $1.58 (2009/10: $1.62) and the average exchange rate for the Euro againststerling was Euro 1.17 (2009/10: Euro 1.11).
Margins and Operating Profit
Nine Months
The gross margin in the first nine months was 40.9% compared with 39.6% in thefirst nine months of the prior year or 39.7% at constant exchange rates,continuing our record of maintaining margin stability which differentiates
usin the industry.
Underlying operating expenses in the first nine months were 29.7% of salescompared with 30.9% in the prior year reflecting the impact of the increase insales and the ongoing benefits arising from our cost reduction activities,including prior year restructuring programmes. In addition, the first ninemonths' underlying operating expenses include £4.4 million of incrementalcosts, of which £2.8 million were incurred in the third quarter, as we continueto transform our business, with total estimated costs for the full year being £5.0 million as previously announced. Underlying operating profit was £83.8 million (2009/10: £51.0 million)producing an underlying operating margin of 11.2% (2009/10: 8.7%). Thisreflects the leverage from increased sales, operating efficiencies andcontinued benefit from cost actions taken last year to permanently reduceoperating costs by £16 million per annum. Excluding the incremental operatingexpenses of £4.4 million, our underlying operating margin was 11.8%. Atconstant exchange rates the increase in underlying operating profit comparedwith the prior year was 54.7% or 62.8% excluding the incremental operatingexpenses. Operational gearing, being the year on year increase in underlyingoperating profit expressed as a percentage of the increase in sales, all atconstant exchange rates, was 20.4%, or 23.5% excluding the incrementaloperating expenses. Total operating profit for the nine months was £83.8 million (2009/10: £49.7million). There was a beneficial impact on underlying operating profit of £3.2million from the translation of overseas results compared with the prior year.
Third Quarter
The gross margin in the third quarter was 41.1% compared with 39.7% in the third quarter last year, or 39.8% at constant exchange rates, and 40.8% in the second quarter. This represents the twentieth consecutive quarter of gross margin stability, which continues to differentiate us in the industry.
Underlying operating profit was £28.3 million (2009/10: £18.4 million)producing an underlying operating margin of 11.3% (2009/10: 9.2%) or 12.4%excluding the incremental operating expenses of £2.8 million. This reflectsleverage from the increase in sales, operating efficiencies and the benefitsfrom cost reduction programmes. There was a beneficial impact on operatingprofit of £0.7 million from the translation of overseas results compared withthe prior year. Operational gearing in the third quarter was 19.6%, or 25.5%excluding the incremental expenses of £2.8 million. At constant exchange ratesthe increase in underlying operating profit compared with the prior year was48.5% or 63.2% excluding incremental operating expenses.
Foreign Currency Impact
A one cent movement in the exchange rate between the US dollar and sterlingimpacts the Group's operating profit by approximately £200,000 per annum and aone cent movement in the exchange rate between the Euro and sterling impactsthe Group's operating profit by approximately £200,000 per annum.
Finance Costs
Net finance costs in the first nine months were £14.2 million (2009/10: £13.4million). This comprises net interest payable of £10.9 million (2009/10: £10.1million), which was covered 7.7 times by underlying operating profit, and acharge of £3.3 million (2009/10: £3.3 million) in respect of the Company'sconvertible preference shares.
Profit Before Tax
Underlying profit before tax in the first nine months was £69.6 million (2009/10: £37.6 million) and total profit before tax in the first nine months was £69.6 million (2009/10: £36.3 million).
Underlying profit before tax in the third quarter was £23.6 million (2009/10: £ 13.9 million) and total profit before tax in the third quarter was £23.6 million (2009/10: £11.1 million).
Taxation Charge
The taxation charge for the first nine months was at an effective rate of 28.0%(2009/10: 29.0%) of profit before tax, preference dividends and gains on thepurchase and cancellation of preference shares.
Return on Net Operating Assets
Return on net operating assets for the first nine months was 41.8% (2009/10: 27.3%)
Earnings per ShareUnderlying earnings per share for the first nine months were 13.7 pence (2009/10: 7.3 pence). Total earnings per share for the first nine months were 13.7pence (2009/10: 6.9 pence).
Cash Flow and Net Financial Liabilities
Total cash generated from operations in the third quarter was £28.0 million(2009/10: £27.0 million) or £28.2 million excluding the cash impact of 2009/10restructuring costs (2009/10: £29.1 million), representing 98.9% of operatingprofit (2009/10: 173.1%) or 99.6% excluding the impact of restructuring costs(2009/10: 158.2%). Working capital increased by £5.3 million in the quarterreflecting targeted inventory investment and higher levels of receivables inline with the increase in sales. The Group's working capital to sales ratio
inthe third quarter was 23.5%. Total cash generated from operations in the first nine months was £75.8 million(2009/10: £78.0 million) or £76.5 million excluding the impact of restructuringcosts (2009/10: £83.7 million), representing 90.5% of operating profit or 91.3%excluding the impact of restructuring costs (2009/10: 156.9% or 164.1%). Freecash flow in the first nine months, being total cash generated from continuingoperations less net capital expenditure, interest, preference dividends and taxpayments, was £32.7 million, or £33.4 million excluding restructuring costs,(2009/10: £54.2 million or £59.9 million).
Net financial liabilities at the end of the first nine months were £266.3 million (31 January 2010: £264.2 million), including £60.8 million (31 January 2010: £60.2 million) attributable to the Company's preference shares.
Financial Position
Premier Farnell's financial position remains robust with good liquidity andstrong free cash flow. At 31 October 2010 our headroom on bank borrowings was £50.8 million under facilities in place until January 2013. This headroom,combined with our net cash position of £50.9 million, gives us a secure fundingposition. Operations
(including Newark, Farnell, element14, CPC and MCM)
Q3 Q3 Q3 9M 9M 9M 10/11 09/10 growth 10/11 09/10 growth £m £m £m £m Revenue 230.8 180.8 25.2% 685.9 529.3 26.2% Underlying operating 28.8 17.9* 55.4% 84.0 48.4* 63.3%profit Underlying operating 12.5% 9.9%* 12.2% 9.1%* margin % * excluding restructuring costs in 2009/10 of £7.6 million (Q1: £4.0 million,Q2: £0.8 million, Q3: £2.8 million) and the one-off gain arising in the secondquarter of £5.3 million from the reorganisation of the Group's North Americanpension plans. The division's strong sales momentum from the previous quarter continued intothe third quarter where sales grew 25.2% year on year, despite the toughercomparators. Global EDEsales within the division grew 41.0% year on year. Thissales growth represents a 21.2 percentage point outperformance of the widermarket, which according to the SIA - indicative of the EDE market - grew 19.8%year on year for the equivalent period. Sales in the division's internationalmarkets have delivered further positive growth and in the key emerging marketsof Greater China, India and Eastern Europe combined third quarter sales grew73.8% year on year. In China our business once again received recognition fromthe electronics industry, being named the "Engineers Favorite Distributor" atEDN China Innovation Awards. This is the second consecutive year our businessin China has received this accolade. Initiatives like our T80 programme and significant enhancements to ourproposition has led to an estimated 30 basis point increase in our market shareover the last twelve months, with the division's active customer base growing7.6% year on year in the third quarter alone. Investments in e-centricenhancements to our proposition continue to add significant value and drive newcustomer acquisition. Sales from iBuy, our innovative eProcurement solution,have seen strong growth this quarter, up 157.1% year on year in Europe and inAPAC iBuy sales grew 311.8% year on year. In North America sales from theindustry leading solution grew 76.4% on the prior quarter, as the number of newcustomers adopting iBuy in the region remains encouraging. For the quarter thedivision's web sales grew 46.0% year on year, while eCommerce accounted for48.1% of MDD sales as our content-rich web environments continue to increase asour customers' channel of choice. Through focusing on driving profitable growth the division continues to delivera strong underlying return on sales, which for the quarter was 12.5%. Thisrepresents a 0.3 percentage point improvement on the prior quarter and anincrease of 2.6 percentage points year on year. The division's strong salesperformance combined with the benefit of cost actions taken and the positiveimpact of operating leveragehas led to third quarter operating profit growing55.4% year on year. MDD Americas(Newark) Q3 Q3 Q3 9M 9M 9M 10/11 09/10 growth 10/11 09/10 growth £m £m £m £m Revenue 98.7 78.1 22.1% 294.9 231.2 23.4% Underlying operating 7.9 3.1* 145.2% 20.9 7.4* 176.5%profit Underlying operating 8.0% 4.0%* 7.1% 3.2%* margin % *excluding restructuring costs in 2009/10 of £4.7 million (Q1: £1.1 million,Q2: £0.8 million, Q3: £2.8 million) and the one-off gain arising in the secondquarter of £5.0 million from the reorganisation of the Group's North Americanpension plans.
Our sales performance accelerated in North America during the quarter, with MDDAmericas' sales growing 1.6% on prior quarter which is the fifth consecutivequarter of sequential quarter on quarter improvement in the division's salesper day. When compared with the third quarter of the prior year the division'ssales grew 22.1%. The division's third quarter EDE sales grew 32.2% year onyear, which compares to the wider semiconductor market where the SIA reportedthat sales in North America grew 30.7% year on year, for the equivalent period. A further 7,600 EDE products were added to the division's product portfolioduring the quarter. 2,100 of these were new-to-market products which add asignificant level of stickiness to the division's proposition as the businesscontinues to invest in its EDE proposition. The North American business'transition to the web continues at pace and in the quarter eCommerce accountedfor 35.8% of sales, a 10.4 percentage point improvement year on year. The division's underlying return on sales for the quarter was 8.0%,representing a 1.2 percentage point improvement on the prior quarter and a 4.0percentage point improvement on the prior year. This is also the fifthconsecutive quarter of sequential improvement and, as we continue to shape ourbusiness around the web to drive further cost efficiencies, we anticipate thatthis return on sales progression will accelerate into the fourth quarter. Thesignificant year on year increase in gross margin supported the third quarterunderlying operating profit increase of 145.2%. MDD Europe and Asia Pacific(Farnell and element14) Q3 Q3 Q3 9M 9M 9M 10/11 09/10 growth 10/11 09/10 growth £m £m £m £m Revenue 107.0 79.3 33.9% 317.8 230.7 34.0% Underlying operating 18.6 12.4 44.2% 56.2 34.2* 51.6% profit Underlying operating 17.4% 15.6% 17.7% 14.8%* margin %
*excluding Q1 restructuring costs in 2009/10 of £2.9 million
Third quarter sales in MDD Europe and Asia Pacific grew 33.9%, as both of theregions continue to capitalise on the strength and growth opportunitiesinherent in our strategy. The continuing focus on execution and operationalexcellence has led to the division's underlying return on sales improving to17.4% in the third quarter, up 1.8 percentage points over the third quarter oflast year. eCommerce accounted for 62.0% of MDD Europe and Asia Pacific sales.This progression in the division's transition to the web, combined with thebenefit of increasing sales to the higher margin EDE sector and the costactions taken last year continue to positively impact our profitability. As aconsequence, underlying operating profit increased 44.2% on the prior year.
Revenue by Q3 Q3 Revenue 9M 10/11 9M 09/10 Revenue growthregion 10/11 09/10 growth £m £m £m £m UK (including 36.7 27.8 31.9% 107.8 82.9 29.8%exports) Mainland 54.3 40.2 36.2% 161.0 116.7 34.6%Europe
Asia Pacific 16.0 11.3 31.0% 49.0 31.1 42.8%
In Europe sales grew 34.4% year on year and third quarter sales per day were atan all-time high. Our European EDE sales in the quarter grew 47.4% year onyear, a performance that compares to the European technology market where theDistributors' and Manufacturers' Association of Semiconductor Specialists(DMASS) reported that sales grew 63.8% year on year, for the calendar thirdquarter. DMASS cited that this exceptionally high growth was extremely variedacross Europe, with sales in Eastern Europe growing 89%, while in Spain salesgrew 28%. Web sales in Europe grew 49.0% in the quarter and eCommerce nowaccounts for 63.1% of European sales.
Sales at Farnell UK, excluding exports, grew 25.2% in the quarter. This compares with the most recent data from the Association of Franchised Distributors of Electronic Components (AFDEC) who reported sales growth of 29.6% excluding Farnell, in the 3 months to October.
In Asia Pacific sales grew 31.0% year on year in the third quarter. The regionsthird quarter EDE sales grew 43.7% year on year, which compares to the widerAsia Pacific semiconductor market where, according to the SIA, sales grew 18.8%year on year for the equivalent period. eCommerce in the region accounted for55.6% of sales and third quarter web sales grew 57.6% year on year. With therebranding of our Asia Pacific business to element14 complete, investment inSearch Engine Optimisation (SEO) and Search Engine Marketing (SEM) willcontinue to be a focus to drive customer acquisition, building on the 14.0%growth in Asia Pacific's active customer base in the quarter. Other Distribution Businesses(CPC and MCM) Q3 Q3 Q3 9M 9M 9M 10/11 09/10 growth 10/11 09/10 growth £m £m £m £m Revenue 25.1 23.4 6.4% 73.2 67.4 8.1% Underlying operating 2.3 2.4 -4.5% 6.9 6.8* 1.1%profit Underlying operating 9.2% 10.3% 9.4% 10.1%* margin %
*excluding the one-off gain arising in the second quarter of 2009/10 of £0.3 million from the reorganisation of the Group's North American pension plans.
Third quarter sales at CPC grew 4.4% year on year, driven by strong customeracquisition and an increasingly attractive online proposition. Newmulti-channel marketing activities, including social media marketing andeffective SEO investments helped grow CPC's website customer visits by 32.7%year on year. eCommerce accounted for 35.9% of total sales in the quarter andsales from the business' higher margin private label product range accountedfor 29.7% of sales. Sales growth at MCM remains strong, with third quartersales up 11.8% year on year. Investment in the businesses online offering andmarketing initiatives was fundamental in both MCM's active customer basegrowing 2.9% year on year and eCommerce accounting of 35.6% of third quartersales. Sales from MCM's new product and private label offerings accounted for32.8% and 49.8% of total sales, respectively.
Industrial Products Division
(Akron Brass and TPC Wire and Cable)
Q3 Q3 Q3 9M 9M 9M 10/11 09/10 growth 10/11 09/10 growth £m £m £m £m Revenue 20.5 19.0 5.6% 62.4 58.5 4.5% Underlying operating 3.3 3.4 -5.7% 10.3 10.4* -3.5%profit Underlying operating 16.1% 17.9% 16.5% 17.8%* margin
*excluding the one-off gain arising in the second quarter of 2009/10 of £1.0 million from the apitalizeion of the Group's North American pension plans.
TPC Wire & Cable
TPC delivered a record sales performance for any quarter, leading to thebusiness' third quarter sales growing 41.8% year on year. TPC's internationalsales grew 53.4% on the prior quarter, while the business' focus enhancing itsproduct offering has driven sales from new products to account for 14.2% oftotal sales. Investment in talent has seen TPC continue to apitalize onopportunities within new market segments such as transportation and pulp andpaper. AkronBrassThird quarter sales declined 3.0% year on year at Akron Brass, which is asignificant outperformance of the wider global fire apparatus market whichdeclined 7.1% during the same period. Sales in Akron's international markets ofChina and Australia grew 56.5% and 75.1% on the prior quarter, respectively.New product innovation has been a fundamental driver behind Akron'soutperformance of its market and for the first nine months of the year salesfrom new products have grown 89.9%, with 15.2% of Akron's third quarter salescoming from new products.
This press release contains certain forward-looking statements relating to thebusiness of the Group and certain of its plans and objectives, including, butnot limited to, future capital expenditures, future ordinary expenditures andfuture actions to be taken by the Group in connection with such capital andordinary expenditures, the expected benefits and future actions to be taken bythe Group in respect of certain sales and marketing initiatives, operatingefficiencies and economies of scale. By their nature forward-lookingstatements involve risk and uncertainty because they relate to events anddepend on circumstances that will occur in the future. Actual expendituresmade and actions taken may differ materially from the Group's expectationscontained in the forward-looking statements as a result of various factors,many of which are beyond the control of the Group. These factors include, butare not limited to, the implementation of initiatives supporting the Group'sstrategy, the effect of legislation and regulatory enactments, recruitment andintegration of new personnel, the implementation of cost-saving initiatives tooffset current market conditions, continued use and acceptance of e-commerceprograms and systems, the ability to expand into new markets and territories,the implementation of new sales and marketing initiatives, changes in demandfor electronic, electrical, electromagnetic and industrial products, rapidchanges in distribution of products and customer expectations, the ability tointroduce and customers' acceptance of new services, products and productlines, product availability, the impact of competitive pricing, fluctuations inforeign currencies, and changes in interest rates and overall marketconditions, particularly the impact of changes in world-wide and nationaleconomies. The Group does not intend to update the forward-looking statementsmade herein. Condensed Consolidated Income Statement For the third quarter and nine months ended 31st October 2010 2010/11 2009/10 2010/11 2009/10 2009/10 Third Third Nine Nine Full quarter quarter months months year unaudited unaudited unaudited unaudited audited Notes £m £m £m £m £m Continuing operations Revenue 2 251.3 199.8 748.3 587.8 795.3 Cost of sales (148.0) (120.4) (442.1) (355.1) (478.9) Gross profit 103.3 79.4 306.2 232.7 316.4 Net operating expenses - before restructuring and pension changes (75.0) (61.0) (222.4) (181.7) (243.7) - restructuring costs 3 - (2.8) - (7.6) (7.6) - net one-off income from pension changes 3 - - - 6.3 6.3 Total net operating expenses (75.0) (63.8) (222.4) (183.0) (245.0) Operating profit - before restructuring and pension changes 28.3 18.4 83.8 51.0 72.7 - restructuring costs 3 - (2.8) - (7.6) (7.6) - net one-off income from pension changes 3 - - - 6.3 6.3 Total operating profit 2 28.3 15.6 83.8 49.7 71.4 Finance income (interest receivable) - 0.1 0.1 0.3 0.5 Finance costs - interest payable (3.6) (3.5) (11.0) (10.4) (14.1) - preference dividends (0.9) (0.9) (2.7) (2.7) (3.5) - premium on redemption of preference shares (0.2) (0.2) (0.6) (0.6) (0.8) Total finance costs (4.7) (4.6) (14.3) (13.7) (18.4) Profit before taxation 3 23.6 11.1 69.6 36.3 53.5 Taxation 4 (6.8) (3.5) (20.2) (11.3) (16.0) Profit for the period (attributable to ordinary shareholders) 16.8 7.6 49.4 25.0 37.5 Earnings per share 5 Basic 4.6p 2.1p 13.7p 6.9p 10.4p Diluted 4.6p 2.1p 13.5p 6.9p 10.3p Ordinary dividends Interim - proposed 4.4p 4.2p 4.2p Final - proposed 5.2p Paid 9.6p 9.4p 9.4p
Impact on shareholders' funds (£m) 34.7 34.0 34.0 Condensed Consolidated Statement of Comprehensive Income For the third quarter and nine months ended 31st October 2010 2010/11 2009/10 2010/11 2009/10 2009/10 Third Third Nine Nine Full quarter quarter months months year unaudited unaudited unaudited unaudited audited £m £m £m £m £m Profit for the period 16.8 7.6 49.4 25.0 37.5 Net exchange adjustments 0.8 1.9 1.6 (4.1) 1.1 Actuarial losses on pensions and other post- retirement obligations - - - (21.5) (12.2) Deferred tax credit on actuarial losses - - - 7.7 4.1 Net fair value (losses)/gains on cash flow hedges (4.3) (0.6) (1.8) 3.7 4.1 Net (losses)/gains not recognised in the income statement (3.5) 1.3 (0.2) (14.2) (2.9) Total comprehensive income for the period (attributable to ordinary shareholders) 13.3 8.9 49.2 10.8 34.6
The accompanying notes form an integral part of this unaudited condensed consolidated financial information.
Condensed Consolidated Balance Sheet
As at 31st October 2010 31st October 1st November 31st January 2010 2009 2010 unaudited unaudited audited Notes £m £m £m ASSETS Non-current assets Goodwill 34.8 34.4 34.8 Other intangible assets 23.2 30.0 24.2 Property, plant and equipment 53.2 48.0 53.4 Deferred tax assets 12.2 6.6 12.2 Total non-current assets 123.4 119.0 124.6 Current assets Inventories 206.0 165.3 175.2 Financial assets - - 1.1 Trade and other receivables 153.4 123.6 126.7 Cash and cash equivalents 6 50.9 31.7 26.6 Total current assets 410.3 320.6 329.6 LIABILITIES Current liabilities Financial liabilities 6 (1.5) (40.1) (43.1) Trade and other payables (135.2) (100.2) (101.6) Current tax payable (27.8) (25.4) (27.4) Total current liabilities (164.5) (165.7) (172.1) Net current assets 245.8 154.9 157.5 Non-current liabilities Financial liabilities 6 (315.7) (256.3) (248.8) Retirement and other post-employment benefits (36.4) (48.5) (38.8) Deferred tax liabilities (3.1) (1.8) (3.0) Total non-current liabilities (355.2) (306.6) (290.6) NET ASSETS/(LIABILITIES) 14.0 (32.7) (8.5) EQUITY Ordinary shares 18.4 18.3 18.3 Equity element of preference shares 10.4 10.4 10.4 Share premium 28.1 23.8 24.2 Capital redemption reserve 4.4 4.4 4.4 Hedging reserve (1.4) - 0.4 Cumulative translation reserve 18.0 11.2 16.4 Retained earnings (63.9) (100.8) (82.6) TOTAL EQUITY 14.0 (32.7) (8.5)
Consolidated Statement of changes in Equity For the nine months ended 31st October 2010
2010/11 2009/10 2009/10 Nine Nine Full months months year unaudited unaudited audited £m £m £m Total equity at beginning of period (8.5) (5.6) (5.6) Profit for the period 49.4 25.0 37.5 Other comprehensive expense (0.2) (14.2)
(2.9)
Total comprehensive income 49.2 10.8 34.6
Transactions with owners:
Ordinary dividends paid (34.7) (34.0) (34.0) Ordinary shares issued 4.0 - 0.4 Purchase of ordinary shares - (5.0) (5.0) Share-based payments 4.0 1.1 1.1 Total transactions with owners (26.7) (37.9) (37.5) Total equity at end of period 14.0 (32.7) (8.5)
The accompanying notes form an integral part of this unaudited condensed consolidated financial information.
Condensed Consolidated Statement of Cash Flows
For the third quarter and nine
months ended 31st October 2010 2010/11 2009/10 2010/11 2009/10 2009/10 Third Third Nine Nine Full quarter quarter months months year unaudited unaudited unaudited unaudited audited Notes £m £m £m £m £m Cash flows from operating activities Operating profit 28.3 15.6 83.8 49.7 71.4 Restructuring/pension changes: - net income statement impact - 2.8 - 1.3 1.3 - cash impact (0.2) (2.1) (0.7) (5.7) (7.1) Non-cash impact of restructuring/pension changes (0.2) 0.7 (0.7) (4.4) (5.8) Depreciation and amortisation 4.7 5.1 14.2 14.8 19.5 Changes in working capital (5.3) 5.0 (23.2) 16.6 12.8 Additional funding for post retirement defined benefit plans (0.9) (0.5) (2.9) (1.7) (2.9) Other non-cash movements 1.4 1.1 4.6 3.0 3.3 Total cash generated from operations 28.0 27.0 75.8 78.0 98.3 Interest received - 0.1 0.1 0.3 0.5 Interest paid (1.3) (1.3) (8.0) (7.8) (12.5) Dividends paid on preference shares - - (1.8) (1.8) (3.5) Taxation paid (6.7) (5.1) (20.8) (6.4) (11.6) Net cash generated from operating activities 20.0 20.7 45.3 62.3 71.2 Cash flows from investing activities Acquisition of business - (6.1) - (6.1) (6.2) Proceeds from sale of property, plant and equipment - - - - 0.1 Purchase of property, plant and equipment (3.3) (0.8) (5.8) (2.7) (5.5) Purchase of intangible assets (computer software) (3.0) (1.7) (6.8) (5.4) (6.5) Net cash used in investing activities (6.3) (8.6) (12.6) (14.2) (18.1) Cash flows from financing activities Issue of ordinary shares 0.9 - 4.0 - 0.4 Purchase of ordinary shares - - - (5.0) (5.0) New bank loans 11.0 7.2 67.8 144.1 144.1 Repayment of bank loans - - (43.4) (158.7) (169.8) Dividends paid to ordinary shareholders (15.9) (15.1) (34.7) (34.0) (34.0) Net cash used in financing activities (4.0) (7.9) (6.3) (53.6) (64.3) Net increase/(decrease) in cash, cash equivalents and bank overdrafts 9.7 4.2 26.4 (5.5) (11.2) Cash, cash equivalents and bank overdrafts at beginning of period 41.4 27.3 25.4 39.0 39.0 Exchange gains/(losses) 0.4 0.2 (0.3) (1.8) (2.4) Cash, cash equivalents and bank overdrafts at end of period 51.5 31.7 51.5 31.7 25.4 Reconciliation of net financial liabilities
Net financial liabilities at
beginning of period (264.2) (295.9) (295.9) Net increase/(decrease) in cash, cash equivalents and bank overdrafts 26.4 (5.5) (11.2) (Increase)/decrease in debt (24.4) 14.6 25.7 Premium on redemption of preference shares (0.6) (0.6) (0.8) Derivative financial instruments (2.0) 4.4 5.0 Amortisation of arrangement fees (1.4) (1.3) (1.7) Exchange movement (0.1) 19.6 14.7
Net financial liabilities at
end of period 6 (266.3) (264.7) (264.2)
The accompanying notes form an integral part of this unaudited condensed consolidated financial information.
Notes 1 Basis of preparation
The unaudited condensed consolidated financial information in this report has
been prepared based on International Financial Reporting Standards (IFRSs), as
adopted by the European Union, and applying the accounting policies disclosed
in the Group's 2010 Annual Report and Accounts on pages 92 to 96, except as described below.
There are no new standards or amendments to standards which are mandatory for
the first time in the current financial year which would have a significant
impact on the Group other than IFRS 3 (revised), Business Combinations, which
will impact the accounting of future business acquisitions.
This condensed consolidated financial information does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act 2006.
Statutory accounts for the financial year ended 31st January 2010, have been
delivered to the Registrar of Companies. The report of the auditors on those
accounts was unqualified and did not contain any statement under Section 237 of
the Companies Act 1985. Copies of the Company's 2010 Annual Report and
Accounts are available from Premier Farnell plc, 150 Armley Road, Leeds, LS12
2QQ, England, or from the Company's website at www.premierfarnell.com.
Segment information 2 (unaudited) 2010/11 2009/10 Third quarter Third Before Restructuring/ After quarter restructuring/ pension restructuring/ pension changes pension changes (note 3) changes £m £m £m £m Revenue Marketing and Distribution Division Americas 98.7 78.1 - 78.1 Europe and Asia Pacific 107.0 79.3 - 79.3 Other Distribution Businesses 25.1 23.4 - 23.4 Total Marketing and Distribution Division 230.8 180.8 - 180.8 Industrial Products Division 20.5 19.0 - 19.0 251.3 199.8 - 199.8 Operating profit Marketing and Distribution Division Americas 7.9 3.1 (2.8) 0.3 Europe and Asia Pacific 18.6 12.4 - 12.4 Other Distribution Businesses 2.3 2.4 - 2.4 Total Marketing and Distribution Division 28.8 17.9 (2.8) 15.1 Industrial Products Division 3.3 3.4 - 3.4 Head Office costs (3.8) (2.9) - (2.9) 28.3 18.4 (2.8) 15.6 2010/11 2009/10 Nine months Nine months Before Restructuring/ After restructuring/ pension restructuring/ pension changes pension changes (note 3) changes £m £m £m £m Revenue Marketing and Distribution Division Americas 294.9 231.2 - 231.2 Europe and Asia Pacific 317.8 230.7 - 230.7 Other Distribution Businesses 73.2 67.4 - 67.4 Total Marketing and Distribution Division 685.9 529.3 - 529.3 Industrial Products Division 62.4 58.5 - 58.5 748.3 587.8 - 587.8 Operating profit Marketing and Distribution Division Americas 20.9 7.4 0.3 7.7 Europe and Asia Pacific 56.2 34.2 (2.9) 31.3 Other Distribution Businesses 6.9 6.8 0.3 7.1 Total Marketing and Distribution Division 84.0 48.4 (2.3) 46.1 Industrial Products Division 10.3 10.4 1.0 11.4 Head Office costs (10.5) (7.8) - (7.8) 83.8 51.0 (1.3) 49.7 2009/10 Full year (audited) Before After restructuring Restructuring restructuring costs/pension costs/pension costs/pension changes changes (note 3) changes £m £m £m Revenue Marketing and Distribution Division Americas 310.0 - 310.0 Europe and Asia Pacific 317.0 - 317.0 Other Distribution Businesses 91.4 - 91.4 Total Marketing and Distribution Division 718.4 - 718.4 Industrial Products Division 76.9 - 76.9 795.3 - 795.3 Operating profit Marketing and Distribution Division Americas 12.3 0.3 12.6 Europe and Asia Pacific 48.5 (2.9) 45.6 Other Distribution Businesses 9.0 0.3 9.3 Total Marketing and Distribution Division 69.8 (2.3) 67.5 Industrial Products Division 13.6 1.0 14.6 Head Office costs (10.7) - (10.7) 72.7 (1.3) 71.4 3 Profit before taxation Profit before taxation is stated after the following: 2010/11 2009/10 2010/11 2009/10 2009/10 Third Third Nine Nine Full quarter quarter months months year unaudited unaudited unaudited unaudited audited £m £m £m £m £m One-off (charges)/credits: - restructuring costs - (2.8) - (7.6) (7.6) - net one-off income from pension changes - - - 6.3 6.3 - (2.8) - (1.3) (1.3) Charge for share-based payments (1.1) (0.6) (4.0) (1.1) (1.1) Charge for defined benefit pension schemes (0.2) (0.7) (0.8) (2.9) (3.2)
Due to their significance, restructuring costs and the net one-off income from
pension changes have been disclosed separately on the face of the income
statement. 4 Taxation
The taxation charge represents an effective tax rate for the full year on
profit before tax and preference dividends of 28.0% (2009/10: 29.0%).
5 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
ordinary shareholders for the period by the weighted average number of ordinary
shares in issue during the period, excluding those shares held by the Premier
Farnell Executive Trust. For diluted earnings per share, the weighted average
number of ordinary shares in issue is adjusted to assume issue of all dilutive
potential ordinary shares, being those share options and awards with a
non-market based performance condition granted to employees where the exercise
price is less than the average market price of the Company's ordinary shares
during the period, and those shares with a market based performance condition
based on the current estimate of the number of shares that will vest under the
performance criteria.
Reconciliations of earnings and the weighted average number of ordinary shares
used in the calculations are set out below. 2010/11 2009/10 Nine months (unaudited) Nine months (unaudited) Basic Diluted Basic Diluted Earnings share amount share
amount Earnings share amount share amount
£m pence pence £m pence pence Earnings per share Profit attributable to ordinary shareholders 49.4 13.7 13.5 25.0 6.9 6.9 Restructuring costs - - - 7.6 2.1 2.1 Tax attributable to restructuring costs - - - (2.5) (0.7) (0.7) Net one-off income from pension changes - - - (6.3) (1.7) (1.7) Tax attributable to net one-off income from pension changes - - - 2.4 0.7 0.6 Profit attributable to ordinary shareholders before gain on purchase of preference shares, restructuring costs and one-off income from pension changes 49.4 13.7 13.5 26.2 7.3 7.2 Number Number Weighted average number of shares 360,859,369 360,859,252 Dilutive effect of share options 6,402,915 2,735,739 Diluted weighted average number of shares 367,262,284 363,594,991 2009/10 Full Year (audited) Basic per Diluted per Earnings share amount share amount £m pence pence Earnings per share Profit attributable to ordinary shareholders 37.5 10.4 10.3 Restructuring costs 7.6 2.1 2.1 Tax attributable to restructuring costs (2.5) (0.7) (0.7) Net one-off income from pension changes (6.3) (1.8) (1.8) Tax attributable to net one-off income from pension changes 2.4 0.7 0.7 Profit attributable to ordinary shareholders before gain on purchase of preference shares, restructuring costs and the net one-off income from pension changes 38.7 10.7 10.6 Number Weighted average number of shares 360,456,270 Dilutive effect of share options 2,947,102 Diluted weighted average number of shares 363,403,372
Earnings per share excluding restructuring costs and one-off pension changes
have been provided in order to facilitate year on year comparison.
6 Net financial liabilities 31st October 1st November 31st January 2010 2009 2010 unaudited unaudited audited £m £m £m Cash and cash equivalents 50.9 31.7 26.6 Unsecured loans and overdrafts (255.0) (236.4) (231.2) Net financial liabilities before preference shares and derivatives (204.1) (204.7) (204.6) Preference shares (60.8) (60.0) (60.2) Derivative financial instruments (net) (1.4) - 0.6 Net financial liabilities (266.3) (264.7) (264.2) Net financial liabilities are analysed in the balance sheet as follows: Current assets Cash and cash equivalents 50.9 31.7 26.6 Derivative financial instruments - - 1.1 50.9 31.7 27.7 Current liabilities Bank overdrafts - - (1.2) 5.3% US dollar Guaranteed Senior Notes payable 2010 - (40.0) (41.3) Other loans (0.1) (0.1) (0.1) Derivative financial instruments (1.4) - (0.5) (1.5) (40.1) (43.1) Non-current liabilities Bank loans (132.3) (95.6) (85.2) 5.9% US dollar Guaranteed Senior Notes payable 2013 (99.4) (96.4) (99.4) 5.2% US dollar Guaranteed Senior Notes payable 2017 (18.8) - - Other loans (4.4) (4.3) (4.0) Preference shares (60.8) (60.0) (60.2) (315.7) (256.3) (248.8)
During the second quarter the Group repaid its $66 million US Private Placement
notes as they fell due, by drawing down $30 million from its new $75 million US
Private Placement Shelf Facility, repayable July 2017, and the remainder from
existing bank facilities. At 31st October 2010 the headroom on bank borrowings
was £50.8 million with these facilities now totalling £185 million and in place until January 2013. 7 Exchange rates The principal average exchange rates used to translate the Group's overseas profits were as follows: 2010/11 2009/10 2010/11 2009/10 2009/10 Third Third Nine Nine Full quarter quarter months months year US dollar 1.58 1.62 1.54 1.58 1.59 Euro 1.17 1.11 1.17 1.13 1.13
vendorRelated Shares:
PFL.L