10th May 2010 16:02
Premier Farnell plc10 May 2010Annual Financial Report
Following the release on 18 March 2010 of the Company's preliminary full year results announcement for the year ended 31 January 2010 (the "Preliminary Announcement"), the Company announces it has published its Annual Report and Accounts for 2009/10 (the "Annual Report and Accounts").
Copies of the Annual Report and Accounts and the Notice of the Annual General Meeting for 2010 are available to view on the Company's website:
www.premierfarnell.com
In accordance with Disclosure and Transparency Rule 6.3.5 (2) (b) additional information is set out in the appendices to this announcement.
The Preliminary Announcement included a condensed set of financial statements and a fair review of the development and performance of the business and the position of the Company and the group. The post balance sheet event referred to in Appendix C to this announcement is not considered to have any impact on the condensed set of financial statements in the Preliminary Announcement.
Pursuant to Listing Rule 9.6.1, two copies of each of the Directors' Report and Accounts, the Notice of the Annual General Meeting for 2010 and the form of proxy in relation to the Annual General Meeting for 2010 have been submitted to the UK Listing Authority.
Pursuant to Disclosure and Transparency Rule 6.1.2, a copy of the Company's articles of association, as these are proposed to be amended subject to approval at the Company's forthcoming Annual General Meeting, has also been submitted to the UK Listing Authority.
The Directors' Report and Accounts, Notice of the Annual General Meeting for 2010, form of proxy and draft articles of association will shortly be available for inspection at the Document Viewing Facilities of the UK Listing Authority which is situated at:
Financial Services Authority25 The North ColonnadeCanary WharfLondonE14 5HSAppendices
The following information is extracted from the Annual Report and Accounts. Page references are to pages in the Annual Report and Accounts.
Appendix A: Directors' responsibility statement (page 77)
Each of the Directors, as listed on pages 64 and 65, confirms that, to the best of his or her knowledge:
(a) the Group's Consolidated Financial Statements in this report, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU, IFRIC interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS, and the Company Financial Statements in this report which have been prepared in accordance with UK GAAP give a true and fair view of the assets, liabilities, financial position and profit of the Group or of the Company, respectively, taken as a whole; and
(b) the management report contained in this annual report includes a fair review of the development and performance of the business and the position of the Company and the Group taken as a whole, together with a description of the principal risks and uncertainties that they face.
Appendix B: Principal Risks and Uncertainties (pages 52 and 53)
The Principal Risks and uncertainties facing the Group are provided below. We have taken the opportunity to review how we disclose these risks and uncertainties to more fully reflect the way those risks are managed at Premier Farnell.
In particular we have recognised in the table below the ethos of the Company to look for the opportunities presented when addressing significant risks. The principal risks are formally reviewed in total, twice per year by the Board. However, updates in terms of emerging risks or significant actions undertaken are addressed as and when required at Board meetings. Management reviews strategic, operational, and financial and compliance risks in regular focused forums during the year, for example, quarterly business reviews with each of the businesses; monthly business agenda reviews with the senior business and functional management; six weekly operations forums, covering major programmes and projects; and at other key executive management meetings.
RISKS AND UNCERTAINTIES KEY MITIGATING ACTIONS KEY OPPORTUNITIES
Insufficient progress We have a fully We are leveraging the
with transformation in US integrated multi-channel combination of commerce,
sales and marketing plan community and our aimed at addressing the element14 brand in the US needs of our EDE to win market share and customers. The US attract EDEs to our element14 transactional online environment. site was launched in February 2010 to tackle the EDE market sector and drive adoption of the web as a key channel. Competitive advantage We have an accelerated The continued investment in web channel is not software development in and development of webmaintained approach which ensures functionality provides speed to market for value to customers and additions and meets their developing improvements to our web requirements. For example functionality. We the launch of DesignLink, continue to vision and our CAD coupling plan our long term interface. development of our future online environment. Web resilience is addressed by regular testing of the security of the websites using both internal and external security scans and vulnerability tests. Infrastructure improvements are made on a regular basis to address other causes of unavailability of the sites. Recruitment, development Our high potential talent The creation of a high or is identified and performing actively retention of talented nurtured through agreed engaged team which will people development consequently lead to plans including a improved business comprehensive mentoring performance. By focusing programme as well as a on training and focus on succession development, customer planning for our key relationships, leadership positions. In leadership, social the last two years we responsibility, and have embedded core skills communications, the training including number leadership development of employees who are and sales effectiveness actively engaged at programmes. We conduct Premier Farnell has annual employee increased by one engagement surveys to percentage point over enable progress of our 2008, to 77%. people actions to be monitored and areas of improvement identified and actions put in place. Our reward schemes are continuously evaluated to drive and reward performance and ensure retention of key talent. As we drive significant change throughout the organisation our competency development and evaluation processes are focused on encouraging change agility, particularly as we emerge from global recession. Foreign exchange exposure Net operating assets are - to US and Eurozone reviewed by currency on a quarterly basis and aligned with net debt. We conduct ongoing sensitivity analysis and consider when and what financial instruments to put in place to minimise our exposure to transactional currency flow. Our treasury policy and procedures are subject to regular review and audit. Competitive pressures We continue to focus on We are implementing new product, margin and our strategic initiatives to high service proposition build to drive profitable customer loyalty and growth. delineate a We have business differentiating intelligence processes to proposition for our key maintain our awareness of customer base. market developments and competitor actions. We continue to invest in and focus on innovation to build customer loyalty. Systems and Business continuity plans We have implemented infrastructure are kept under review for improved workflows and all our locations. We operational efficiencies have the ability to as well as provided switch order fulfilment increased capacity and in Europe between our invested in capability. Leeds and Li¨ge All of these allow the distribution centres. greater support of Contingency plans are in customers' future place for our US requirements, suppliers' warehouse and management future needs and the systems. We maintain an ability to leverage ongoing review of our IT information as an asset infrastructure with actions in place to improve efficiency and effectiveness and to maintain security and resilience. Legal risks We have exposure to an The increase in umber of countries and environmental legislation their respective legal for electronics, allows compliance requirements us to provide real value are addressed through a to our key number of controls. customers through our Trade compliance is a legislative expertise. specific significant requirement which is controlled through an experienced specialist team, automated screening enablers and ongoing training of our sales teams Pensions We commission formal - > inability to fund triennial actuarial liabilities valuations which confirm (defined benefit plan) that ongoing funding is > negative impact on maintained at an Group appropriate level for our balance sheet defined benefit schemes in the US, UK and Canada, together with annual actuarial reviews. Our US and Canadian defined benefit schemes were closed to further accrual of defined benefit obligations during 2010, the UK having been similarly closed in 1998. We have also reduced our exposure to equity investments in these plans.
Appendix C: Important events during the first six months of the financial year to date and their impact on the condensed financial statements set out in the Company's preliminary announcement (page 74 - Post Balance Sheet Events)
Since the year end the Group has entered into a US$75 million private shelf agreement with a US private placement investor. The agreement allows the Group to issue private placement notes on a bilateral basis. The issuance period extends two years from the date of the agreement (31 March 2010), and the maturity of each shelf note issued shall be no more than ten years from the date of issuance. Pricing of the notes is subject to an acceptable rate from the purchaser at the time of issue.
vendorRelated Shares:
PFL.L