19th Mar 2008 07:00
Premier Farnell plc
19 March 2008
Results for the Fourth Quarter and Financial Year ended 3 February 2008
Key Financials ‚£m Q4 07/8 Q4 06/7 Q4 FY 07/8(b) FY 06/7 FY (13 weeks) growth(b) (52 weeks) growth(b)Continuing (14 weeks) (53 weeks) (restated)operations (a) (restated) (a) (a)(unaudited) ‚£m ‚£m ‚£m ‚£mRevenue 197.7 170.8 7% 744.7 723.3 5%Operating profit 23.8 20.0 16% 88.0 83.1 9%Profit before 20.3 15.4 27% 71.2 62.3 18%taxationEarnings per share - total 4.2p 2.9p 40% 10.0p 14.4p -28% - continuing 4.2p 2.9p 40% 13.7p 11.6p 21%operationsDividend 5.2p 5.0p 4% 9.2p 9.0p 2%Notes:(a) Continuing operations exclude BuckHickman, part of the MDDEurope and Asia Pacific Division, which was sold on 10 April 2007. The resultsof this discontinued operation are shown as a single number on the face of theincome statement below profit after tax and are thus excluded from the tradingresults discussed in this statement, including comparative information whichhas been restated accordingly. Further details are given in note 6 to thefinancial information.
(b) Throughout this statement, in order to reflect underlying business performance, sales growth is based on sales per day for continuing businesses at constant exchange rates and for like periods, and growth in operating profit, profit before tax and earnings per share are all calculated at constant exchange rates, unless otherwise stated.
Strategic Highlights
- Accelerating sales growth globally, as we continue to outperform the market and drive profitability through focus on our strategy.
- MDD North American business momentum continuing with fourth quarter sales growth of 9%, despite challenging market conditions.
- Nine quarters of gross margin stability - proven industry differentiation.
- Second year of double digit sales growth in Mainland Europe as customer acquisition targets met.
- Internationalisation plans advancing - India business acquisition completed on time and now operational, sales in China up 23% in the fourth quarter, more local language websites launched in Eastern Europe and Asean.
- Fourth quarter web sales up 49% in MDD Americas reflecting continued development of our websites. In Europe we are now receiving a web order on average every 10 seconds.
- Continued investment in product through the addition of 88,000 stocked products and 50,000 on-demand, emphasising our commitment to meeting the needs of Electronic Design Engineers (EDE), globally.
- Recommended increased final dividend of 5.2p per share, up 4%, to give a full year dividend of 9.2p per share (2006/07: 9.0p per share), the first increase in ten years.
Financial Highlights
- Fourth quarter year on year sales growth of 7% with strong performance from all our MDD regions.
- Operating expenses as a percentage of sales continues to reduce even after the ongoing investment in our strategy.
- Improvement in fourth quarter operating margin to 12.0% with full year operating margin at 11.8%, compared with 11.5% in the prior year.
- Reported profit before tax for the full year up 14% and earnings per share from continuing operations up 18%, despite impact of exchange rates.
- Strong cash performance, with cash generated from continuing operations in the quarter representing 129% of operating profit.
Commenting on the results, Harriet Green, Chief Executive Officer, said:
"The fourth quarter saw our strongest Group sales per day growthand provided a strong finish to the year. This reflects the benefits of thestrategy, announced a year ago, to focus on the EDE segment, the web and theinternationalisation of our high service business model. The fourth quartersaw good progress in all aspects of the strategy and, when combined with thecontinued gross margin stability and cost focus, led to a full year reportedpre-tax profit improvement of 14%, despite the impact of exchange rates.
We have made a good start to the new financial year and have carried the momentum from the fourth quarter into the first quarter. The proposed dividend increase reflects the Board's confidence in our strategy, the increasing benefits that the strategy is bringing to the Group and confidence in the global opportunities on which Premier Farnell continues to capitalise."
For further information, contact:
Harriet Green, Chief Executive Premier Farnell +44 (0) 20 7851 4100 Officer
plc Mark Whiteling, Chief FinancialOfficerRichard Mountain Financial +44 (0) 20 7269 7186 Dynamics (UK)
Premier Farnell's announcements and presentations are published at www.premierfarnell.com, together with business information, Annual Report and Accounts, and links to all other Group web sites.
The 2008 Annual Report and Accounts will be available online from 30 April 2008.
The results for the first quarter of the financial year to 1 February 2009 will be announced on Thursday, 5 June 2008.
Premier Farnell plc
STATEMENT ON FOURTH QUARTER ANDFINANCIAL YEAR ENDED 3 FEBRUARY 2008
Premier Farnell plc, the leading multi-channel, high service distributor supporting millions of engineers and purchasing professionals globally, announces its results for the fourth quarter and financial year ended 3 February 2008 (53 weeks).
Note: Throughout this statement, in order to reflect underlying business performance, sales growth is based on sales per day for continuing businesses at constant exchange rates and for like periods, and growth in operating profit, profit before tax and earnings per share are calculated at constant exchange rates, unless otherwise stated.
Chief Executive's Operational Overview
Strong fourth quarter performance has delivered a very positiveconclusion to a year of growth and transformation as our new strategyincreasingly differentiates us in the market. All major parts of the businessdemonstrated positive year on year sales growth this quarter, withoutcompromising the Group's gross margin stability. The Group continues to buckmarket trends and take share in an otherwise challenging market with industrygroups (such as SIA and AFDEC) reporting declines in the major geographies.Our three year strategy for profitable growth continues to have awidespread impact as the plans to transform the business continue to deliverand accelerate. Our high service business model relies on continuous flawlessexecution and this core distribution strength, when combined with our newstrategy, produced another quarter of strong sales performance, outperformingmany of our competitors globally. The results from this first year of changeare extremely encouraging as we continue to develop our business by focusingon the global electronic design engineer (EDE) segment, driving business viathe web and internationalising our business model, whilst retaining ourprofitable maintenance, repair and operations (MRO) core.
With nine consecutive quarters of gross margin stability, the cost base of the Group is significantly improved with operating expenses as a percentage of sales reducing despite our ongoing investment in the strategy.
Accelerating sales growth during the fourth quarter in the Americashas, at 9.0%, outperformed the solid year on year growth of 4.9% achieved inthe third quarter. In mainland Europe we continued to demonstrate robustperformance with growth of 11.2% in the fourth quarter, leading to a secondfull year of double digit sales growth, while UK sales grew 3.2% in the fourthquarter, despite challenging market conditions. Our strategy is clearlyworking and the personnel changes we effected in the UK after the thirdquarter are having the desired effect. With 76% of the Group's sales ininternational markets, the particularly slow market conditions in the UK havehad less of an impact on the Group's performance. Performance in Asia in thequarter was also strengthened, with China delivering outstanding quarterlygrowth of 23.4%. In all areas our improved performance has resulted from therigorous implementation of the new strategy and the drive for higherperformance across the business.Focus on the EDE segment continues to provide excitingopportunities and the signing this quarter of a further nine key franchisesincluding ISSI, ROHM and Ohmite, and four specialist, niche technologyfranchises. This continues to provide evidence of our commitment to respondingto the feedback we receive from this critical customer group. The recruitmentof further key industry talent in this area, combined with the strong talentdeveloped from within the organisation, ensures we are well placed to furtherleverage opportunities through regional supplier relationships, improvedtechnology marketing, and even more focused product information to market.The strength of our multi-channel, multi-vendor offering enables usto target the technology needs of our EDE customers in a unique way. As wecontinue to work with our suppliers, seeding their new technologies quickly tothe market, we are driving strengthened customer acquisition programmes.Increased investment in product has helped to grow our active customer base,attracting customers through our increasingly differentiated proposition. Ourcommitment to supporting global EDEs is once again demonstrated by theaddition of 88,000 stocked products during the year and a further 50,000available on-demand. Suppliers looking to reach our growing EDE customersegment continue to partner with us in successful programmes such as the PanEuropean development tool program launched with Altera and our global smallorder, online referral programme with Fujitsu. We also continue to engage withour suppliers and held a Supplier Summit in Asia during the fourth quarter,with 40 attendees from our supplier community. Plans for a similar supplierengagement programme to support the EDEs in Eastern Europe and India are wellunderway.Our innovative Live Edge technology challenge came to itsconclusion with a virtual award ceremony and technology conference attended byengineers from across the world. The six winning designs each have thepotential to have a meaningful impact on the environment and the lives of theglobal community. Premier Farnell continues to take its own corporate socialresponsibilities seriously and has committed to a three year carbon reductionprogramme aimed at reducing greenhouse gas emissions from the Group's mainenergy uses by 10%. Our new Live Edge challenge for 2008 will be ready tolaunch shortly.Momentum from the implementation of the new web front end acrossthe business continues to build, with fourth quarter MDD web sales up 38% andtotal eCommerce sales accounting for 29% of total MDD sales in the fourthquarter. Once again this quarter we saw record sales growth via the web, withJanuary delivering record performances in Europe where eCommerce activity isnow averaging 43% of our total sales. Some countries are already performingwell above our 2009/10 target to transact 50% of our business via the web.This level of European activity equates to us receiving an order every 10seconds, constantly, throughout a 12 hour working day.In the US, we saw web sales in the quarter grow by 49%, with asignificant increase in organic search, progressive and increasing averageorder values; and a significant increase in both new customer and repeatvisits. The completed integration of sophisticated new customer and webanalytics software, supporting the continued enhancements and improvements weare making to our customer experience, underpins much of our recent growth, aswe continue to build on the investments made. Our multi-channel approach willbe enhanced by the imminent launch of new catalogues across Europe and Asiaoffering extended product ranges, carefully selected to meet customer demand.Our internationalisation plans gained further traction with thecompletion of our acquisition in India which is now trading under new,industry experienced leadership with the integration of both people andsystems complete. We can now start to build on the power and reputation of theFarnell brand in the fast growing Indian market from the eight officelocations now in place. The transition of Premier Electronics in China fromits former MRO, lower margin, customer base to target the faster growing,profitable EDE segment continued with strong sales growth of 23.4%. Our otherbusinesses across South East Asia are now undergoing a similar transition,moving away from their traditional MRO customer activity to the fast emergingEDE segment. Premier Electronics' unique, next day delivery service to mostmajor Chinese cities, leading edge Mandarin web site, and growing number ofoffices received recognition when the business was awarded a pioneering awardby the Chinese Ministry of Information and Industry, and Quality ManagementAssociation for the Electronic Industry. This important and prestigiousrecognition further strengthens our value to customers as a reliable supplierof quality products. We have continued to add to our local language websiteswith further web sites in Hungary, Czech Republic, Slovakia and Thailand. Newcatalogues for Eastern Europe are now in production and direct marketingactivity has been extended to our growing customer base in the area.The Industrial Products Division had a strong year with salesgrowth of 5.7% and an improvement in operating margin to 20.1%. The divisioncontinues to demonstrate progress against its strategy, most notably throughexpansion internationally and into different sectors of the North Americanmarket.
In recognition of the benefits our new strategy is bringing to the business, and the increased confidence of the Board in its long term impact on the Group's success, the Board is recommending a final dividend increase to 5.2 pence per share (2006/7: 5.0 pence per share), payable in June 2008, subject to approval at the Annual General Meeting. This will be the first dividend increase in ten years.
With the new trading year off to a good start we expect to continue to build on our current levels of performance.
Financial Results
Notes: Continuing operations exclude BuckHickman, part of the MDDEurope and Asia Pacific Division, which was sold on 10 April 2007. The resultsof this discontinued operation are shown as a single number on the face of theincome statement below profit after tax and are thus excluded from the tradingresults discussed in this statement, including comparative information whichhas been restated accordingly. Further details are given in note 6 to thefinancial information.
The fourth quarter was a 14 week accounting period (Q4 2006/7: 13 weeks) and the full year was a 53 week accounting period (full year 2006/7: 52 weeks).
RevenueFourth QuarterSales for the fourth quarter from continuing operations were ‚£197.7million (2006/7: ‚£170.8 million or ‚£173.0 million at constant exchange rates).Sales per day from continuing operations increased 7.0% on the prior year withboth MDD Americas and MDD Europe and Asia Pacific reporting a strong salesperformance despite the challenging market conditions. The average exchangerate for the US dollar against sterling was $2.00 (2006/7: $1.95) and theaverage exchange rate for the Euro against sterling was Euro 1.36 (2006/7:Euro 1.49).
Full Year
Sales for the full financial year from continuing operations were‚£744.7 million (2006/7: ‚£723.3 million or ‚£699.6 million at constant exchangerates). Sales per day from continuing businesses increased 4.6% on the prioryear. The average exchange rate for the US dollar against sterling was $2.00(2006/7: $1.86) and the average exchange rate for the Euro against sterlingwas Euro 1.44 (2006/7: Euro 1.47).Margins and Operating ProfitFourth QuarterThe gross margin from continuing operations remained stable in thefourth quarter at 39.7% (2006/7:39.6%). Operating profit from continuingoperations was ‚£23.8 million (2006/7: ‚£20.0 million). Operating margin was12.0% (2006/7: 11.7%) reflecting the improved gross margin and a continuedreduction in operating expenses as a percentage of sales even after theongoing investment in our strategy. There was a beneficial impact on operatingprofit of ‚£0.6 million from the translation of overseas results compared withthe prior year, reflecting the strength of the Euro, which more than offsetthe weakness of the US dollar. At constant exchange rates, the increase inoperating profit compared with the prior year was 15.5%, or 7.3% afteradjusting for the extra week.
Full Year
The gross margin from continuing operations in the full financialyear was 39.7%, an increase of 0.2 percentage points on the prior year, withthe Group having now maintained gross margin stability for nine consecutivequarters. Operating profit from continuing operations was ‚£88.0 million(2006/7: ‚£83.1 million) and operating margin was 11.8% (2006/7: 11.5%). Atconstant exchange rates, the increase in operating profit compared with theprior year was 9.2%, or 7.1% after adjusting for the extra week. Operationalgearing, being the year on year increase in operating profit as a percentageof the increase in sales, both at constant exchange rates was 16.4% for thefull year.
There was an adverse impact on operating profit of ‚£2.5 million from the translation of overseas results compared with the prior year, reflecting the continued weakness of the US dollar, partly offset by the strengthening of the Euro. A one cent movement in the exchange rate between the US dollar and sterling impacts the Group's operating profit by approximately ‚£250,000 per annum, and a one cent movement in the exchange rate between the Euro and sterling impacts the Group's operating profit by approximately ‚£200,000 per annum.
Finance Costs
Net finance costs in the financial year were ‚£16.8 million (2006/7: ‚£20.8 million). This comprises net interest payable of ‚£10.8 million (2006/7: ‚£13.0 million), which was covered 8.1 times by operating profit, and a net charge of ‚£6.0 million (2006/7: ‚£7.8 million) in respect of the Company's convertible preference shares.
During the fourth quarter, the Company purchased and cancelled986,500 preference shares for a total cash consideration of ‚£14.1 million.This resulted in a benefit to finance costs in the quarter of ‚£0.7 million,being the difference between the book value and fair value of the debt elementof the preference shares at the date of purchase. The full year benefit tofinance costs from the purchase and cancellation of preference shares was‚£0.9m (2006/7: ‚£0.3 million which arose in the fourth quarter).
The reduction in net finance costs reflects the benefit of the improved net borrowing position, with the underlying level of net financial liabilities at 3 February 2008 (after adjusting for exchange rates) being ‚£30 million lower than a year ago, the gain arising from the purchase of preference shares, and the impact of the US dollar exchange rate.
Profit Before Tax and Taxation Charge
Reported profit before tax from continuing operations in the fourthquarter was ‚£20.3 million (2006/7: ‚£15.4 million). Reported profit before taxfrom continuing operations in the full financial year was ‚£71.2 million(2006/7: ‚£62.3 million). At constant exchange rates, full year profit beforetax increased 17.7% year on year, or 15.4% after adjusting for the extra week.
The taxation charge from continuing operations for the financial year was at an effective rate of 27.9% of profit before tax and preference dividends (2006/7: 29.0%).
Acquisition of Hynetic
On 31 January 2008, the Group acquired that part of the trade and net assets of Hynetics Electronics Private Limited used in carrying on its business in India as an existing authorised distributor of Farnell products, for a total cash consideration, including costs, of ‚£0.9 million. The fair value of the net assets acquired, including intangible assets, was not significant, resulting in goodwill arising of ‚£0.9 million.
Disposal of BuckHickman
On 10 April 2007, the Group disposed of its BuckHickman business, part of theMarketing and Distribution Division, Europe and Asia Pacific, to BSS Groupplc. The pre-tax loss on disposal, which was incurred in the first quarter,was ‚£13.6 million, after the write-off of goodwill allocated to this businessof ‚£19.3 million, and the net cash consideration received during the financialyear was ‚£24.4 million. BuckHickman is a leading UK distributor of industrialtools and supplies and in 2006/7 generated sales of ‚£99.8 million and anoperating loss of ‚£0.8 million.
Return on Net Operating Assets
The return on net operating assets for the year, based on continuing operations, was 30.2% (2006/7: 28.8%), achieving our target in the first full financial year since announcing our strategy.
Earnings per Share
Earnings per share from continuing operations for the year were 13.7 pence, upfrom 11.6 pence in the prior year, reflecting the improved operating profit,the reduction in net finance costs and the lower effective tax rate. Atconstant exchange rates, earnings per share from continuing operationsincreased 21% in the financial year. Total earnings per share for the yearwere 10.0 pence (2006/7: 14.4 pence) reflecting the impact of discontinuedoperations.
Dividend
The Board is recommending an increased final dividend of 5.2 pence per share(2006/7: 5.0 pence per share),, making a total for the year of 9.2 pence pershare (2006/7: 9.0 pence per share). The final dividend, subject to approvalat the Annual General Meeting on 17 June 2008, is payable on 25 June 2008 toshareholders on the register at 30 May 2008.
Cash Flow and Net Financial Liabilities
Net cash generated from continuing operations in the fourth quarter was ‚£30.6million (2006/7: ‚£27.9million), representing 129% of operating profit. Working capital reduced by ‚£5.2 million in the quarter reflecting improved inventory management and continued tight controls over all working capital.
Net cash generated from continuing operations for the year was‚£97.8 million (2006/7: ‚£91.8 million). Full year working capital increasedonly 2.5%, well below the increase in sales. Excluding the net proceeds fromthe sale of the BuckHickman business (‚£24.4 million) and the cost ofpurchasing the Company's preference shares (‚£17.7 million), net cash inflowafter dividends was ‚£7.0 million (2006/7: net cash inflow after dividends of‚£11.1 million before the proceeds from business disposals and the cost ofpurchasing the Company's preference shares).
Net financial liabilities at the end of the year were ‚£254.1 million (28 January 2007: ‚£281.3 million), including ‚£85.9 million (28 January 2007: ‚£103.1 million) attributable to the Company's preference shares.
Operations
Marketing and Distribution Division (MDD)
MDD comprises: Newark, Farnell, MCM and CPC.
Continuing Q4 07/8 Q4 06/7 Q4 growth FY 07/8 FY 06/7 (52 FY growthbusinesses weeks) (14 (13 weeks) (53 weeks) (restated)* weeks) (restated)* ‚£m ‚£m ‚£m ‚£m Revenue 179.0 153.3 7.8% 670.9 649.9 4.5%Operating profit 22.8 19.1 15.2% 84.4 79.6 8.2%Operating margin% 12.7% 12.5% 12.6% 12.2%
* Restated to exclude discontinued operations
Fourth quarter sales grew 7.8% on the prior year, significantlyabove the year on year growth achieved in the first nine months of 3.3%, withcontinued acceleration in the Americas. Operating margins continued to showyear on year improvements as costs remain under tight control. Operationalgearing for the financial year was 16.1%. There was a beneficial impact onoperating profit in the fourth quarter from the translation of overseasresults of ‚£0.6 million, reflecting the relative strength of the Euro (‚£0.8million) partly offset by the relative weakness of the US dollar (‚£0.2million). For the full financial year there was an adverse impact on operatingprofit from the translation of overseas results of ‚£1.6 million, reflectingthe relative weakness of the US dollar (‚£2.3 million) partly offset by therelative strength of the Euro (‚£0.7 million).Momentum from the implementation of the new web front end acrossthe Americas at the end of last year and the successful roll out to Europe andAsia Pacific in April 2007 continues to build, with fourth quarter web salesup 38% and total eCommerce sales accounting for 29% of total sales in thequarter. Investment in eCommerce tools during the third quarter is nowproviding us with quality and timely data, enabling the businesses to increasethe pace and accuracy of our eCommerce development.The AmericasNewark and MCM. Q4 07/8 Q4 06/7 Q4 growth FY 07/8 FY 06/7 FY growth (14 weeks) (13 weeks) (53 weeks) (52 weeks) ‚£m ‚£m ‚£m ‚£mRevenue 84.9 73.8 9.0% 326.7 329.3 4.1%Operating profit 8.3 7.1 18.6% 31.0 30.5 9.9%Operating margin% 9.8% 9.6% 9.5% 9.3%The Americas saw continued acceleration in sales growth in the fourth quarter,up to 9.0% year on year compared with growth in the third quarter of 4.9%,with the implementation of the strategy driving momentum. This compared withstatistics from the Semiconductor Industry Association (SIA) which showed ayear on year decline in billings in the Americas of 6.9% for the same period.Operating margin improved to 9.8% in the fourth quarter, with full yearoperating margin 0.2 percentage points up on the prior year at 9.5%.
Continued focus on the strategic initiatives resulted in Newark's fourth quarter sales growing 9.4% year on year, compared with 5.1% in the third quarter. This was supported by EDE marketing initiatives, increased search engine and other multi-channel marketing activities. Sales from the small customer segment continued to show significant improvement, up 43% year on year in the fourth quarter.
Web sales in the Americas in the fourth quarter again grew strongly, up 49% onthe prior year, reflecting the strategy drive to this higher margin channeland the continuing enhancements and increased functionality being made to thenew web platform.
MCM's fourth quarter sales grew 3.5% despite ongoing concerns surrounding the North American housing market having an impact on the home security and home entertainment segment of the business. Continued focus on both web and off line marketing campaigns and a renewed effort on customer reactivation and prospecting has supported this growth. The proportion of eCommerce sales to total sales increased to 48% in the fourth quarter.
Europe and Asia PacificFarnell and CPC.Continuing Q4 07/8 Q4 06/7 Q4 growth FY 07/8 FY 06/7 FY growthbusinesses (14 weeks) (13 weeks) (53 (52 weeks) (restated)* weeks) (restated)* ‚£m ‚£m ‚£m ‚£mRevenue 94.1 79.5 6.6% 344.2 320.6 4.8%Operating profit 14.5 12.0 13.3% 53.4 49.1 7.2%Operating margin 15.4% 15.1% 15.5% 15.3%%
* Restated to exclude discontinued operations
Sales from continuing operations were up 6.6% in the fourth quarter with the operating margin of 15.4% ahead of last year, reflecting continued cost control. Operational gearing in the full financial year was 17.3%.
Revenue by region Q4 07/8 Q4 06/7 Revenue FY 07/8 FY 06/7 RevenueContinuing growth (52 weeks) growthbusinesses (14 (13 weeks) (53 (restated) weeks) (restated) weeks) ‚£m ‚£m ‚£m ‚£mUK (including 47.6 43.0* 3.2% 179.1 172.3* 2.2%exports)Mainland Europe 38.3 29.9 11.2% 134.4 118.1 10.2%Asia Pacific 8.2 6.6 8.0% 30.7 30.2 -1.2%
* Restated to exclude discontinued operations
In mainland Europe, Farnell continued its strong performance with fourth quarter sales growth of 11.2%. November saw the third successful multi-channel marketing campaign across all European businesses for innovations in EDE packaging and latest technology, resulting in over 1 million touch points across multiple channels. Sales in the full year grew 10.2%, the second consecutive year of double digit sales growth.
The Division's UK sales (including exports) were up 3.2% on theprior year in the fourth quarter, an improvement on the flat year on yearsales growth reported in the third quarter. CPC continued to perform well withsales growth of 6.1% driven by the continued success of the 2008 catalogue,direct mail initiatives, increased customer activity and an ongoing focus onexpanding the customer base. Web sales grew 30% in the quarter as the businesscontinued to achieve record numbers of unique visitors to the web site.Following the definitive steps that we said we would take to improve the salesperformance of the Farnell brand in the UK, fourth quarter sales moved intopositive growth compared to the decline reported in the third quarter of 2.4%.This continued to be better than the market trends reported by the Associationof Franchised Distributors of Electronic Components (AFDEC) which reported asales decline in the UK for the same period of 9.0% excluding Farnell.Web sales grew 35% in the fourth quarter with the new web front endand ongoing web development continuing to benefit the business, supported bythe ongoing launch of web sites in Hungary, Czech Republic and Slovakia. Weare now receiving a web order on average every 10 seconds in Europe throughouta 12 hour working day. Total eCommerce sales in the quarter accounted for 38%of total sales for the division, with some businesses achieving over 60% oftheir sales through eCommerce channels.Following its move in to positive sales growth in the thirdquarter, the Asia Pacific region continued to benefit from its strengthenedoperation and engagement with customers, suppliers and its people, with yearon year fourth quarter sales growth improving to 8.0%. The transition of theChina business from its mainly MRO, lower margin, customer base to become morefocused on the growing, higher margin EDE segment continued to realisebenefits during the quarter with the business reporting strong sales growth of23.4%, supported by the four branches now established in the region, includingChengdu and Shenzen which were opened in the third quarter. This transitionfrom a traditional MRO customer base to the more profitable EDE customers,which is proving so successful in China, is now taking place across all of ourSouth East Asian businesses. We continue to add further websites includingThailand in the fourth quarter. In our Australian and New Zealand markets,although we continue to be impacted by the exposure to global competition,sales in the fourth quarter grew 2.3% year on year. The acquisition of ourdistributor in India at the end of the financial year will allow us tostrengthen our position in the fast growing Indian EDE market through our 30staff and eight branches as we continue to invest in the Asia Pacific region.
Industrial Products Division (IPD)
Q4 07/8 Q4 06/7 Q4 growth FY 07/8 FY 06/7 FY (14 weeks) (13 weeks) (53 weeks) (52 weeks) growth ‚£m ‚£m ‚£m ‚£mRevenue 18.7 17.5 0.2% 73.8 73.4 5.7%
Operating profit 4.0 3.8 5.3% 14.8 13.7 15.6% Operating margin% 21.4% 21.7%
20.1% 18.7%
Sales grew 0.2% in the fourth quarter reflecting the tougher comparator for Akron Brass, with full year sales up 5.7%. Full year operating margin improved to 20.1%.
Akron BrassAkron Brass sales grew 0.5% in the fourth quarter reflecting thetougher comparator for the fourth quarter of last year which benefited from anacceleration of orders from North American fire equipment manufacturers,driven by changes in regulatory requirements. Orders from the Internationaland Industrial segments remained strong and focus continues to be ondeveloping opportunities in new markets, including vehicle and tank washingapplications, and new products such as "Diamondback" perimeter warning lights.Operating margins remained strong in the quarter.
TPC Wire & Cable
TPC's sales continued to show accelerating quarterly year on yeargrowth with sales up by 11.1% in the fourth quarter. This reflected a highlevel of activity in the original equipment manufacturers market and continuedsuccess in the non-automotive markets including rail, wood, utilities andoff-road equipment. Margins continue to be maintained despite increases in
rawmaterial costs.Board
After nine years as members of the Company's Board, John Roques and Cary Nolan will retire with effect from the end of the Company's Annual General Meeting on 17 June 2008. Both John and Cary have provided wise counsel, valuable guidance and continued support to their Board colleagues throughout their tenure. Their presence will be missed and the Board wishes them well in the future.
Dennis Millard will take over the chairmanship of the Audit Committee and a new Senior Independent Director will be announced in due course.
Outlook
The fourth quarter saw our strongest Group sales per day growth andprovided a strong finish to the year. This reflects the benefits of thestrategy, announced a year ago, to focus on the EDE segment, the web and theinternationalisation of our high service business model. The fourth quartersaw good progress in all aspects of the strategy and, when combined with thecontinued gross margin stability and cost focus, led to a full year reportedpre-tax profit improvement of 14%, despite the impact of exchange rates.
We have made a good start to the new financial year and have carried the momentum from the fourth quarter into the first quarter. The proposed dividend increase reflects the Board's confidence in our strategy, the increasing benefits that the strategy is bringing to the Group and confidence in the global opportunities on which Premier Farnell continues to capitalise.
This press release contains certain forward-looking statementsrelating to the business of the Group and certain of its plans and objectives,including, but not limited to, future capital expenditures, future ordinaryexpenditures and future actions to be taken by the Group in connection withsuch capital and ordinary expenditures, the expected benefits and futureactions to be taken by the Group in respect of certain sales and marketinginitiatives, operating efficiencies and economies of scale. By their natureforward-looking statements involve risk and uncertainty because they relate toevents and depend on circumstances that will occur in the future. Actualexpenditures made and actions taken may differ materially from the Group'sexpectations contained in the forward-looking statements as a result ofvarious factors, many of which are beyond the control of the Group. Thesefactors include, but are not limited to, the implementation of initiativessupporting the Group's strategy, recruitment and integration of new personnel,the implementation of cost-saving initiatives to offset current marketconditions, continued use and acceptance of e-commerce programs and systems,the ability to expand into new markets and territories, the implementation ofnew sales and marketing initiatives, changes in demand for electronic,electrical, electromagnetic and industrial products, rapid changes indistribution of products and customer expectations, the ability to introduceand customers' acceptance of new services, products and product lines, productavailability, the impact of competitive pricing, fluctuations in foreigncurrencies, and changes in interest rates and overall market conditions,particularly the impact of changes in world-wide and national economies. TheGroup does not intend to update the forward-looking statements made herein.
Condensed Consolidated Income Statement
For the fourth quarter and financial year ended 3rd February 2008
2007/8 2006/7 2007/8 2006/7 Fourth Fourth Full Full quarter quarter year year (14
weeks) (13 weeks) (53 weeks) (52 weeks)
unaudited unaudited unaudited unaudited
(restated) (restated) Notes ‚£m ‚£m ‚£m ‚£m Continuing operationsRevenue 2 197.7 170.8 744.7 723.3Cost of sales (119.3) (103.2) (449.2) (437.8)Gross profit 78.4 67.6 295.5 285.5Net operating expenses (54.6) (47.6) (207.5) (202.4)Operating profit 2 23.8 20.0 88.0 83.1Finance income (interest receivable)
0.5 0.2 0.9 0.6Finance costs- interest payable (3.3) (3.1) (11.7) (13.6)- preference dividends (1.0) (1.6) (5.6) (6.7)- premium on redemption of preference shares (0.4) (0.4) (1.3) (1.4)- gain on purchase of preference shares 11
0.7 0.3 0.9 0.3Total finance costs (4.0) (4.8) (17.7) (21.4)Profit before taxation 3 20.3 15.4 71.2 62.3Taxation 4 (5.0) (5.0) (21.4) (20.0)
Profit after taxation from continuing operations 15.3 10.4 49.8 42.3(Loss)/profit after taxation from discontinued operations 6 - - (13.5) 10.1Profit for the period (attributable to ordinary shareholders)
15.3 10.4 36.3 52.4 Earnings per share (pence) 7Basic 4.2p 2.9p 10.0p 14.4pDiluted 4.2p 2.9p 9.9p 14.4p Earnings per share from continuing operations (pence) 7Basic 4.2p 2.9p 13.7p 11.6pDiluted 4.2p 2.9p 13.6p 11.6p Ordinary dividendsInterim - proposed 4.0p 4.0pFinal - proposed 5.2p 5.0pPaid 9.0p 9.0p
Impact on shareholders' funds (‚£m) 32.7 32.6
Prior year figures have been restated to reflect the reclassification of the BuckHickman business as a discontinued operation following its disposal on 10th April 2007. Further details are given in note 6.
Condensed Consolidated Statement of Recognised Income and Expense
For the fourth quarter and financial year ended 3rd February 2008
2007/8 2006/7 2007/8 2006/7 Fourth Fourth Full Full quarter quarter year year (14 weeks) (13 weeks) (53 weeks) (52 weeks) unaudited unaudited unaudited audited (restated) (restated) Notes ‚£m ‚£m ‚£m ‚£m Profit for the period 15.3 10.4 36.3 52.4 Net exchange adjustments 5.2 1.2 6.6 (0.6)Actuarial (losses)/gains onpensions and other post-retirementobligations (1.8) 12.2 (1.8)
12.2
Deferred tax credit/(charge) onactuarial (losses)/gains 0.8 (4.4) 0.8
(4.4)
Net gains not recognised in theincome statement 10 4.2 9.0 5.6
7.2
Total recognised income for theperiod 19.5 19.4 41.9
59.6
The accompanying notes form an integral part of this unaudited condensed consolidated financial information.
Condensed Consolidated Balance Sheet
As at 3rd February 2008 3rd February 28th January 2008 2007 unaudited audited Notes ‚£m ‚£mASSETSNon-current assetsGoodwill 31.1 49.6Other intangible assets 20.1 22.2
Property, plant and equipment 55.2
58.8Retirement benefit assets 53.4 56.8Deferred tax assets 0.2 0.2Total non-current assets 160.0 187.6 Current assetsInventories 154.5 162.7Trade and other receivables 121.2 127.9Cash and cash equivalents 9 37.6 32.2Total current assets 313.3 322.8 LIABILITIESCurrent liabilitiesFinancial liabilities 9 (3.0) (11.1)Trade and other payables (84.3) (94.9)Current tax payable (22.2) (28.0)Short-term provisions - (0.8)Total current liabilities (109.5) (134.8) Net current assets 203.8 188.0 Non-current liabilitiesFinancial liabilities 9 (288.7) (302.4)
Retirement and other post- employment benefits (22.0)
(29.6)Deferred tax liabilities (33.0) (30.7)Other provisions - (0.9)Total non-current liabilities (343.7) (363.6) NET ASSETS 20.1 12.0 EQUITYOrdinary shares 18.2 18.2
Equity element of preference shares 15.2
18.4Share premium 23.0 21.6Capital redemption reserve 2.6 1.4Hedging reserve (2.9) (0.1)
Cumulative translation reserve 3.7
(2.9)Retained earnings (39.7) (44.6)SHAREHOLDERS' FUNDS 10 20.1 12.0
The accompanying notes form an integral part of this unaudited condensed consolidated financial information.
Condensed Consolidated Cash Flow Statement
For the fourth quarter and financial year ended 3rd February 2008
2007/8 2006/7 2007/8 2006/7 Fourth Fourth Full Full quarter quarter year year (14 weeks) (13 weeks) (53 weeks) (52 weeks) unaudited unaudited unaudited unaudited (restated) (restated) Notes ‚£m ‚£m ‚£m ‚£m Cash flows from operatingactivitiesOperating profit fromcontinuing operations 23.8 20.0 88.0 83.1Depreciation and amortisation 4.5 4.6 19.1 18.7Changes in working capital 5.2 6.6 (4.7) (5.8)Additional pension scheme
funding (UK defined benefit plan) (0.8) (0.8) (3.1)
(2.4)Other non-cash movements (2.1) (2.5) (1.5) (1.8)Cash generated fromcontinuing operations 8 30.6 27.9 97.8 91.8Cash generated fromdiscontinued operations 8 (0.1) (1.2) (1.2) (1.2)Total cash generated fromoperations 8 30.5 26.7 96.6 90.6Interest received 0.5 0.1 0.9 0.6Interest paid (4.9) (4.7) (11.8) (14.1)Dividends paid on preferenceshares (2.5) (3.3) (5.6) (6.7)Taxation paid (4.7) (5.4) (23.1) (18.7)Net cash generated fromoperating activities 18.9 13.4 57.0 51.7 Cash flows from investingactivitiesAcquisition of business 5 (0.6) - (0.6) -Disposal of business 6 - (0.4) 24.4 20.4Proceeds from sale ofproperty, plant and equipment 1.8 3.0 1.9 5.1Purchase of property, plantand equipment (2.1) (2.6) (7.1) (7.4)Purchase of intangible assets(computer software) (4.0) (2.8) (10.4) (7.0)Net cash (used in)/generatedfrom investing activities (4.9) (2.8) 8.2 11.1 Cash flows from financingactivitiesIssue of ordinary shares - 0.1 1.4 1.3Purchase of ordinary shares 10 - - (2.5) -Purchase of preference shares 11 (14.1) (8.4) (17.7) (8.4)New bank loans 10.7 - 32.1 78.9Repayment of bank loans - (9.5) (29.3) (115.1)Dividends paid to ordinaryshareholders - - (32.7) (32.6)Net cash used in financingactivities (3.4) (17.8) (48.7) (75.9) Net increase/(decrease) incash, cash equivalents andbank overdrafts 10.6 (7.2) 16.5 (13.1)Cash, cash equivalents andbank overdrafts at beginning ofperiod 26.5 28.9 21.3 35.6Exchange losses 0.5 (0.4) (0.2) (1.2)Cash, cash equivalents andbank overdrafts at end ofperiod 37.6 21.3 37.6 21.3 Reconciliation of netfinancial liabilitiesNet financial liabilities atbeginning of period (281.3) (330.1)Net increase/(decrease) incash, cash equivalents andbank overdrafts 16.5 (13.1)(Increase)/decrease in debt (2.8) 36.2Decrease in preference shares 18.5 8.4Premium on redemption ofpreference shares (1.3) (1.4)Derivative financialinstruments (2.8) 0.1Exchange movement (0.9) 18.6Net financial liabilities at endof period 9 (254.1)
(281.3)
Prior year figures have been restated to reflect the reclassification of the BuckHickman business as a discontinued operation following its disposal on 10th April 2007. Further details are given in note 6.
The accompanying notes form an integral part of this unaudited condensed consolidated financial information.
Notes 1 Basis of preparation
The unaudited consolidated financial information in this report has been prepared in accordance with International Financial Reporting Standards (IFRSs) and applying the accounting policies disclosed in the Group's 2007 Annual Report and Accounts on pages 53 to 55.
The financial year ended 3rd February 2008 was a 53 week period (financial year ended 28th January 2007: 52 week period) with the fourth quarter being a 14 week period (fourth quarter ended 28th January 2007: 13 week period).
2 Segment information (continuing operations)
2007/8 2006/7 2007/8 2006/7 Fourth Fourth Full Full quarter quarter year year (14 weeks) (13 weeks) (53 weeks) (52 weeks) unaudited unaudited unaudited unaudited (restated) (restated) ‚£m ‚£m ‚£m ‚£m Revenue
Marketing and Distribution Division
Americas 84.9 73.8
326.7 329.3
Europe and Asia Pacific 94.1 79.5
344.2 320.6
Total Marketing and Distribution Division 179.0 153.3
670.9 649.9
Industrial Products Division 18.7 17.5 73.8 73.4 197.7 170.8 744.7 723.3 Operating profit
Marketing and Distribution Division
Americas 8.3 7.1
31.0 30.5
Europe and Asia Pacific 14.5 12.0
53.4 49.1
Total Marketing and Distribution Division 22.8 19.1
84.4 79.6
Industrial Products Division 4.0 3.8 14.8 13.7 Head Office costs (3.0) (2.9) (11.2) (10.2) 23.8 20.0 88.0 83.1
Prior year figures have been restated to reflect the reclassification of the BuckHickman business, part of the Marketing and Distribution Division, Europe and Asia Pacific, as a discontinued operation following its disposal on 10th April 2007. Further details are given in note 6.
3 Profit before taxation (continuing operations)
Profit before taxation is stated after charging/(crediting):
2007/8 2006/7 Full Full year year (53 weeks) (52 weeks) unaudited audited ‚£m ‚£m Share-based payments 2.3 2.1 Defined benefit pension schemes (net) (2.5) (2.1) 4 Taxation
The taxation charge for continuing operations represents an effective tax rate for the full year on profit before tax and preference dividends of 27.9% (2006/7: 29.0%).
5 Business acquisition
On 31st January 2008, the Group acquired that part of the trade andnet assets of Hynetics Electronics Private Limited used in carrying on itsbusiness in India as an existing authorised distributor of Farnell products,for a total consideration including costs of ‚£0.9m. The fair value of the netassets acquired, including intangible assets, was not significant, resultingin goodwill arising of ‚£0.9 million. The historic trading results and cashflows of this business are not significant.
6 Discontinued operations
(Loss)/profit after taxation from discontinued operations comprises:
2007/8 2006/7 Full Full year year unaudited unaudited ‚£m ‚£m Current year disposals (BuckHickman)
(13.5) (0.6)
Prior year disposals (Kent)
- 10.7
(13.5) 10.1
On 10th April 2007, the Group disposed of BuckHickman, part of theMarketing and Distribution Division, Europe and Asia Pacific. Consequently,the BuckHickman business has been reclassified as a discontinued operation andits trading results are included in the income statement as a single linebelow profit after taxation from continuing operations, with comparativesrestated accordingly. The impact of the disposal of BuckHickman on the incomestatement is as follows: 2007/8 2006/7 Full Full year year unaudited unaudited ‚£m ‚£m Post tax result Revenue 19.3 99.8 Gross margin 6.0 30.2 Net operating expenses (5.8) (31.0) Operating profit/(loss) 0.2 (0.8) Taxation (0.1) 0.2 Profit/(loss) after taxation
0.1 (0.6)
Provisional loss on disposal
Consideration (net of costs) 25.2 - Net assets disposed (see below) (38.8) - Loss on disposal of net assets (13.6) - Taxation - - Net loss on disposal (13.6) - Total income statement impact
(13.5) (0.6)
Net assets disposed comprises: Goodwill allocated to BuckHickman 19.3 Intangible assets (computer software) 1.2 Property, plant and equipment 2.2 Inventories 14.0 Receivables 16.8 Payables (14.7) 38.8
The net loss on disposal is subject to finalisation and agreement of the completion accounts.
Cash flows from BuckHickman included in the consolidated statement of cash flows are as follows:
Net cash flows from operating activities
(1.2) (1.1)
Net cash flows from investing activities
(including net proceeds on disposal)
24.4 (0.7)
7 Earnings per share
Basic earnings per share is calculated by dividing the profitattributable to ordinary shareholders for the period by the weighted averagenumber of ordinary shares in issue during the period, excluding those sharesheld by the Premier Farnell Executive Trust. For diluted earnings per share,the weighted average number of ordinary shares in issue is adjusted to assumeissue of all dilutive potential ordinary shares, being those share options andawards with a non-market based performance condition granted to employeeswhere the exercise price is less than the average market price of theCompany's ordinary shares during the period. At 3rd February 2008 and 28thJanuary 2007, the performance criteria for the vesting of those awards with amarket based performance condition had not been met and, consequently, theshares in question are excluded from the diluted earnings per sharecalculation.
Reconciliations of earnings and the weighted average number of ordinary shares used in the calculations are set out below.
2006/7 2007/8 2007/8 Full year Full year Full year (52 weeks) 2007/8 (53 weeks) (53 weeks) 2006/7 basic and Full year Basic Diluted Full year diluted (53 weeks) earnings earnings (52 weeks) earnings Earnings per share per share Earnings per share unaudited unaudited unaudited unaudited unaudited (restated) ‚£m pence pence ‚£m pence Continuing operations 49.8 13.7 13.6 42.3 11.6 Discontinued operations (13.5) (3.7) (3.7) 10.1 2.8 Total (attributable to ordinary shareholders) 36.3 10.0 9.9 52.4 14.4 Number Number Weighted average number of shares 363,476,320 363,328,421 Dilutive effect of share options 1,913,997 1,293,627 Diluted weighted average number of shares 365,390,317 364,622,048
8 Cash generated from operations
2007/8 2006/7 Full Full year year (53 weeks) (52 weeks) unaudited unaudited ‚£m ‚£m Continuing operations Profit after tax from continuing operations 48.5 42.3 Adjustment for: - tax 22.7 20.0 - depreciation 7.9 8.5 - amortisation of intangible assets 11.2 10.2
- profit on sales of property,
plant and equipment (0.8) (1.4) - preference dividends 5.6 6.7 - interest income (0.9) (0.6) - interest expense 11.7 13.6 - premium on redemption of preference shares 1.3 1.4 - gain on purchase of preference shares (0.9) (0.3)
- additional pension scheme
funding (UK defined benefit plan) (3.1) (2.4)
- decrease in net pension asset
(other defined benefit plans) (3.0) (2.7)
- increase in other
post-retirement obligations - 0.2 - share-based payments 2.3 2.1
Changes in working capital
(excluding the effect of
disposals/acquisitions):
- increase in inventories (2.2) (12.7)
- increase in trade and
other receivables (6.7) (1.8)
- increase in trade and
other payables 4.2 8.7
Cash generated from
continuing operations 97.8 91.8
Discontinued operations
(Loss)/profit after tax from
discontinued operation (13.5) 10.1 Adjustment for: - loss/(gain) on disposal 13.6 (10.1) - tax 0.1 0.1 - depreciation 0.1 0.9 - amortisation of intangible assets 0.1 0.5 - decrease in reorganisation provision (0.1) (2.7)
Changes in working capital:
- (increase)/decrease
in inventories (0.1) 0.6
- decrease in trade
and other receivables 1.1 0.8
- decrease in trade
and other payables (2.5) (1.4)
Cash generated from
discontinued operations (1.2) (1.2) Total cash generated from operations 96.6 90.6 9 Net financial liabilities 3rd February 28th January 2008 2007 unaudited audited ‚£m ‚£m Cash and cash equivalents 37.6 32.2 Unsecured loans and overdrafts
(202.9) (210.3)
Net financial liabilities before
preference shares and derivatives
(165.3) (178.1)
Preference shares
(85.9) (103.1)
Derivative financial instruments (2.9) (0.1) Net financial liabilities
(254.1) (281.3)
Net financial liabilities are analysed
in the balance sheet as follows:
Current assets Cash and cash equivalents 37.6 32.2 Current liabilities Bank overdrafts - (10.9) Other loans (0.1) (0.1) Derivative financial instruments (2.9) (0.1) (3.0) (11.1) Non-current liabilities Bank loans (85.7) (82.0) 5.3% US dollar Guaranteed Senior Notes payable 2010 (33.5) (33.7) 5.9% US dollar Guaranteed Senior Notes payable 2013 (80.7) (81.1) Other loans (2.9) (2.5) Preference shares (85.9) (103.1) (288.7) (302.4)
10 Consolidated statement of changes in shareholders' equity
2007/8 2006/7 Full Full year year (53 weeks) (52 weeks) unaudited audited ‚£m ‚£m Shareholders' funds/(deficit) at beginning of year 12.0 (18.4) Profit for the year 36.3 52.4 Net gains and losses recognised directly in equity 5.6 7.2 Ordinary dividends paid (32.7) (32.6) Ordinary shares issued 1.4 1.2 Purchase of ordinary shares (2.5) - Purchase of preference shares (note 11) - reduction in equity element (3.2) (1.5) - gain arising on equity element 3.1 1.2 - deferred tax 0.6 0.3 Share-based payments 2.3 2.1 Derivative financial instruments (2.8) 0.1 Shareholders' funds at end of year 20.1 12.0 During the second quarter, the Premier Farnell Executive Trustacquired 1,153,693 of the Company's ordinary shares, through purchases on theLondon Stock Exchange for a total cash consideration of ‚£2.5 million, in orderto meet future obligations under the Company's performance share plan. Thisamount has been deducted from shareholders' equity.
11 Purchase of preference shares
During the year the Company purchased and cancelled 1,236,500 ofits preference shares (250,000 in the second quarter and 986,500 in the fourthquarter) at a total cash cost of ‚£17.7 million. Based on the book value andfair value of the instrument at the date of purchase, the financial liabilityelement of the preference shares was reduced by ‚£18.5 million and the equityelement by ‚£3.2 million. A gain of ‚£0.9 million was recognised in the incomestatement (‚£0.2 million in the second quarter and ‚£0.7 million in the fourthquarter) being the difference between the book value and fair value of thefinancial liability element at the date of purchase. The gain arising from thedifference between the book value and fair value of the equity element of ‚£3.1million was recognised as a movement in retained earnings. A deferred taxcredit of ‚£0.6 million arose which is also recognised as a movement inretained earnings. A transfer from retained earnings of ‚£1.2 million tonon-distributable reserves was made in order to maintain the legal nominalvalue of share capital.In the prior year, the Company purchased and cancelled 565,000 of itspreference shares at a total cost of ‚£8.4 million, resulting in a gain of ‚£0.3million being recognised in the income statement. The prior year ConsolidatedStatement of Recognised Income and Expense (SORIE) included the associateddeferred tax credit arising of ‚£0.3 million. However, the deferred tax creditshould not be reflected through the SORIE and thus the prior year SORIE hasbeen restated to exclude this amount. The restatement has no impact onretained earnings or shareholders' funds.
At 3rd February 2008, the Company had 5,773,721 preference shares in issue (28th January 2007: 7,010,221).
12 Exchange rates
The principal average exchange rates used to translate the Group's overseas profits were as follows: 2007/8 2006/7 2007/8 2006/7 Fourth Fourth Full Full quarter quarter year year (14 weeks) (13 weeks) (53 weeks) (52 weeks) US dollar 2.00 1.95 2.00 1.86 Euro 1.36 1.49 1.44 1.47 13 Ordinary dividend The directors are proposing a final dividend in respect of the year ended 3rd February 2008, of 5.2p per share which will absorb ‚£18.9 million of shareholders' funds. As the final dividend is subject to approval at the Annual General Meeting of the Company, to be held on 17th June 2008, it has not been provided for at 3rd February 2008. Once approved, the final dividend will be paid on 25th June 2008 to shareholders on the register of members on 30th May 2008.
14 Annual Report and Accounts
This financial information does not constitute the Group's 2008 statutory accounts within the meaning of the Companies Act 1985. The Group's 2007 statutory accounts have been filed with the Registrar of Companies. The auditors report on these accounts was unqualified and did not include a statement under Section 237(2) or (3) of the Companies Act 1985. Copies of the Group's Annual Report and Accounts will be posted to all shareholders no later than 30 April 2008. Additional copies will be available from Premier Farnell plc, 150 Armley Road, Leeds, LS12 2QQ.
PREMIER FARNELL PLCRelated Shares:
PFL.L