11th Sep 2007 07:00
Premier Farnell plc 11 September 2007 Results for the Second Quarter and Half Year ended 29 July 2007 of the Financial Year ending 3 February 2008Key Financials ‚£m Q2 07/8 Q2 06/7 Q2 growth H1 07/8 H1 06/7 H1 growth (restated) at CER (b) (restated) at CER (b)Continuing operations (a) ‚£m ‚£m ‚£m ‚£m(Unaudited)Revenue 178.9 181.0 3%¢â‚¬ 362.5 369.6 4%¢â‚¬ Operating profit 20.5 20.4 5% 42.7 42.5 7%Profit before 16.3 15.0 14% 33.8 31.4 15%taxationEarnings per share - total 3.0p 2.8p 13% 2.6p 5.9p -53% - continuing 3.0p 2.8p 13% 6.3p 5.9p 15%operationsNotes:(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.Further details are given in note 7 to the financial information.
(b) CER - constant exchange rates
Strategic Highlights
- Rigorous implementation of our business strategy continued during the quarter with further investment in international markets and the transitioning of our North American business
- Highest ever global web sales in the quarter, increasing 30% on the prior year, reflecting the benefits of our new, state of the art web front end and major infrastructure investments
- 20 significant franchise wins and territorial extensions with high technology suppliers in the second quarter, including 5 niche technology `greenhouse' suppliers, enhancing our proposition to the Electronic Design Engineer (EDE) segment. Fifty thousand new products added in the first half
- Significant strengthening of the senior management team with seven new appointments of industry experienced individuals
Financial Highlights
- Gross margin stability continues to underpin our strategic progress, with stable gross margin for the last seven quarters
- Improvement in operating margin to 11.5% in the second quarter compared to 11.3% in the prior year, with first half operational gearing* at 21% reflecting ongoing cost control
- Profit before tax up 14% in the second quarter and earnings per share from continuing operations up 13%, both at constant exchange rates
- Continued strong cash performance with cash generated from continuing operations in the second quarter representing 115% of operating profit after investing in new product additions
- Second quarter sales growth in all divisions with total year on year growth of 3%, despite a more challenging North American market
- Interim dividend of 4.0 pence per share (2006/7: 4.0 pence)
Commenting on the results, Harriet Green, Group Chief Executive, said:
"We continue to make good progress with the rigorous implementation of our business strategy and are especially pleased with the 30% increase in web sales in the quarter and our success in winning major new franchises.
"Whilst market conditions in North America in the second quarterwere rather more challenging than in the first quarter, we delivered growthacross all divisions with double digit growth in pre-tax profit and earningsper share, at constant exchange rates. The start of the third quarter has seenimproving year on year sales growth compared to the second quarter. Weanticipate delivering a second half performance in line with ourexpectations."
* Operational gearing represents the year on year increase in operating profit as a percentage of the increase in sales, both at constant exchange rates.
¢â‚¬ percentage changes in SALES
Comparison of sales for specific periods is affected by three variables:
1. Changes in exchange rates used to translate the overseas sales in different currencies into sterling;
2. Differences in the number of working days;
3. Disposal or acquisition of businesses.
Throughout this statement, in order to reflect underlying business performance, percentage changes in sales are based on sales per day for continuing businesses at constant exchange rates and for like periods, unless otherwise stated.
For further information, contact:
Harriet Green, Chief Executive Premier Farnell +44 (0) 20 7851 4100
Officer plc
Mark Whiteling, Chief Financial
OfficerElaine Ryman Financial +44 (0) 20 7269 7121 Dynamics
Premier Farnell's announcements and presentations are published at www.premierfarnell.com, together with business information, the 2007 Annual Report and Accounts, and links to all other Group web sites.
The results for the third quarter of the financial year to 3 February 2008 will be announced on 6 December 2007.
Premier Farnell plc
SECOND QUARTER STATEMENT
Results for the Second Quarter and Half Year ended 29 July 2007 of the Financial Year ending 3 February 2008
Premier Farnell, the leading multi-channel, high service distributor supporting millions of engineers and purchasing professionals globally, announces its results for the second quarter and half year ended 29 July 2007.
Note: percentage changes in SALES
Comparison of sales for specific periods is affected by three variables:
1. Changes in exchange rates used to translate the overseas sales in different currencies into sterling;
2. Differences in the number of working days;
3. Disposal or acquisition of businesses.
Throughout this statement, in order to reflect underlying business performance, percentage changes in sales are based on sales per day for continuing businesses at constant exchange rates and for like periods, unless otherwise stated.
Chief Executive's Operational Overview
The second quarter has been one of sustained focus on the rigorous execution of our strategy and the building of momentum for profitable growth. We have continued to make good progress in the key areas of our strategic drive, namely targeting the rapidly growing electronic design engineering community, driving increased web sales, continuing to internationalise our model into new markets and maintaining our solid Manufacturing, Repair and Operations (MRO) core.
We continue to drive towards our central goal, to target profitablegrowth ahead of average market growth rates, and we believe that the directionwe are taking will strengthen the business for the longer term. Progress hascontinued in North America despite a more challenging market. In mainlandEurope, we have now seen seven consecutive quarters of double digit year onyear sales growth. We continue to manage costs tightly and have implemented amore robust set of internal processes, leading to demonstrable improvements inour business model. The increase in operating margin and strong operationalgearing, at 21% for the first half, alongside the cash performance aretangible evidence of the benefits these actions are delivering.We have continued to build and strengthen our senior managementteam through a combination of internal promotions and some significantexternal appointments globally, adding real industry experience to the teamresponsible for driving and embedding our strategic progress. Most notably therecent appointment of a President for the Asia Pacific region; a new GlobalHead of Technology Marketing to drive EDE support and programmes; investmentin our supplier and product management resources, both regional and global,including a new Senior Vice President, Product and Regional SupplierManagement, for Newark; together with a further two supplier and productmanagement industry experts, the appointment from within of a General Managerfor Eastern Europe; a new President for MCM, and some imminent additions toour eCommerce team as we continue to develop our leading edge web proposition.The additional knowledge and expertise these new appointments bring willfurther differentiate us in the market.Our drive to support the millions of electronic design engineersglobally continues apace with major advances in customer acquisition andtechnology marketing. Our multi-channel approach continues to support ouroffering with the product selection in the new, current year, cataloguesreflecting our greater focus on design centric products. Our global technologycampaigns have particularly utilised the power of the web with the launch ofGlobal EDWorld, a microsite incorporating new tools and information for designengineers. We have concluded 26 new franchise negotiations in the first half.Of these, 20 were in the second quarter, including some compelling EDEsuppliers such as Linear Technology for the Americas, KOA for Europe,pan-European agreements with SHARP Microelectronics and Cirrus Logic,including all non-EU countries, Cornell Dubilier and Littelfuse for Europe andAsia Pacific, and Bourns for Asia Pacific. These new agreements include 5niche technology `greenhouse' suppliers, enhancing our proposition to thedesign engineering segment, with names such as Nanotron and Memsic. Additionsto our product range have continued, with a further fifty thousand lines addedglobally as we work to ensure the very latest technology products areavailable.
Live Edge, our electronic design challenge for the global environment, is making exciting progress, gaining profile and industry recognition, with an expert global judging panel established and thousands of registrations by electronics engineers from over 80 countries.
The web continues to be another area of significant progress withsecond quarter web sales increasing 30% on the prior year, up in all parts ofour MDD businesses this quarter. Overall, eCommerce sales now account for 27%of our total MDD sales.The launch of the new web platform in Europe has seen web activitygrow ahead of expectations, with some countries now transacting more than 50%of their business through eCommerce channels. This quarter has seenparticularly dramatic year on year growth in web sales in France, up 85%, andHolland, up 41%. In the USA the ability to bring new products and data tomarket at speed remains a key driver of our transition to an EDE centricbusiness. We continue to enhance the speed, simplicity and search capabilitiesof our global web platform with new functionality, enhanced performance andreliability. These capabilities have been further augmented by our investmentin a central global database and critical IT infrastructure, a programme setto continue through the second half. Through our multi-channel strategy wecontinue to make more products available to more customers worldwide, and theweb remains critical to our customer acquisition plans. As with our expansioninto China, the web will play a critical part as we unfurl our EasternEuropean plans during Q3.The internationalising of our business model continues, withChina's transition to the more profitable EDE segment continuing to makeprogress and our next day delivery service offering to most Chinese citiesproving to be a significant differentiator for us. We now have customers in 34cities and over 90% of our product sold in Greater China is RoHS compliant, aswe lead engineers and purchasing professionals through the legislativechanges, drawing on our global knowledge and expertise. During Q3 our plansfor expansion into Eastern Europe will become more evident, but these arealready well advanced as we build local language channels to market. Ourinvestment in people and resources in this vital growth region continues asindigenous electronics companies increase in number alongside the existingmulti-national corporations. The Indian electronics market also continues togrow, rapidly emerging as another high technology centre for the future.Overall, the second quarter has been another positive one forPremier Farnell, reflected in our strategic progress and the growth across alldivisions with double digit growth in pre-tax profit and earnings per share,at constant exchange rates. This progress is further underpinned by continuedgross margin stability.Financial ResultsNote: 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.Further details are given in note 7 to the financial information.
Revenue
Half Year
Sales for the first half from continuing operations were ‚£362.5million (2006/7: ‚£369.6 million or ‚£349.3 million at constant exchange rates).Sales per day from continuing businesses increased 3.5% on the prior year. Theaverage exchange rate for the US dollar against sterling was $1.99 (2006/7:$1.81).
Second Quarter
Sales for the second quarter from continuing operations were ‚£178.9million (2006/7: ‚£181.0 million or ‚£173.3 million at constant exchange rates).Sales per day from continuing operations increased 2.6% on the prior year withall segments producing positive sales growth.
Margins and Operating Profit
Half Year
The gross margin from continuing operations in the first half was39.7%, an increase of 0.3 percentage points on the prior year, demonstratingthe Group's continued commitment to maintaining gross margin stability.Operating profit from continuing operations was ‚£42.7 million (2006/7: ‚£42.5million) producing an operating margin of 11.8% (2006/7: 11.5%). At constantexchange rates, the increase in operating profit compared with the prior yearwas 6.8%. A one cent movement in the exchange rate between the US dollar andsterling impacts the Group's operating profit by approximately ‚£250,000 perannum. Operational gearing remained strong in the first half at 20.5%.
Second Quarter
The gross margin from continuing operations in the second quarterwas 39.6%, an increase of 0.2 percentage points on the prior year. Operatingprofit from continuing operations was ‚£20.5 million (2006/7: ‚£20.4 million),producing an operating margin of 11.5% (2006/7: 11.3%). This reflects theimproved gross margin and is after the investment in our strategy. There wasan adverse impact on operating profit of ‚£0.9 million from the translation ofoverseas results compared with the prior year, principally as a result of theweakness of the US dollar. At constant exchange rates, the increase inoperating profit compared with the prior year was 5.1%.
Finance Costs
Net finance costs in the first half were ‚£8.9 million (2006/7:‚£11.1 million). This comprises net interest payable of ‚£5.4 million (2006/7:‚£7.1 million), which was covered 7.9 times by operating profit, and a chargeof ‚£3.7 million (2006/7: ‚£4.0 million) in respect of the Company's convertiblepreference shares.During the second quarter, the Company purchased and cancelled250,000 of its preference shares for a total cash consideration of ‚£3.6million. This resulted in a benefit to finance costs in the second quarter of‚£0.2 million, being the difference between the book value and fair value ofthe debt element of the preference shares at the date of purchase.
The reduction in net finance costs reflects the benefit of the improved net borrowing position, with the underlying level of net financial liabilities at 29 July 2007 (after adjusting for exchange rates) being ‚£43 million lower than a year ago.
Profit Before Tax and Taxation Charge
Reported profit before tax from continuing operations in the secondquarter was ‚£16.3 million (2006/7: ‚£15.0 million). Reported profit before taxfrom continuing operations in the first half was ‚£33.8 million (2006/7: ‚£31.4million). At constant exchange rates, profit before tax in the first halfincreased 15.0% year-on-year, significantly ahead of the rate of sales growthachieved.
The taxation charge from continuing operations for the quarter was at an effective rate of 29.5% of profit before tax and preference dividends (2006/7: 29.0%).
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 provisional pre-tax loss on disposal, which was incurred in the firstquarter, was ‚£13.6 million, after the write-off of goodwill allocated to thisbusiness of ‚£19.3 million, and the net cash consideration received during thefirst half was ‚£24.5 million. BuckHickman is a leading UK distributor ofindustrial tools and supplies: in 2006/7, it generated sales of ‚£99.8 millionand an operating loss of ‚£0.8 million.
Return on Net Operating Assets
Return on net operating assets for the first half, based on continuing operations, was 29.7% (2006/7: 29.2%).
Earnings per Share
Earnings per share from continuing operations for the first half were 6.3pence, up from 5.9 pence in the prior year, reflecting the reduction in netfinance costs. At constant exchange rates, earnings per share from continuingoperations increased 14.5% in the first half as a result of the improvedoperating profit and lower net finance costs. Total earnings per share in thefirst half were 2.6 pence (2006/7: 5.9 pence) reflecting the impact of theloss after taxation from discontinued operations.The Board is declaring an interim dividend of 4.0 pence per share (2006/7: 4.0pence per share) to be paid on 17 October 2007 to shareholders on the registeron 21 September 2007.Balance Sheet and Cash FlowNet cash generated from continuing operations in the second quarterwas ‚£23.6 million, representing 115% of operating profit. Working capitallevels increased only slightly in the second quarter. The net cash inflowduring the first half was ‚£15.1 million (2006/7: ‚£2.8 million), reflecting thenet proceeds from the disposal of the BuckHickman business (‚£24.5 million),the cost of purchasing the Company's preference shares (‚£3.6 million) and thecost of purchasing ordinary shares by the Premier Farnell Executive Trust(‚£2.5 million). Net financial liabilities at the end of the quarter were‚£258.5 million (30 July 2006: ‚£317.4 million), including ‚£100.0 million (30July 2006: ‚£110.8 million) attributable to the Company's preference shares.
Operations
Marketing and Distribution Division (MDD)
MDD comprises: Newark, Farnell, MCM and CPC.
Continuing Q2 07/8 Q2 06/7 Q2 growth H1 07/8 H1 06/7 H1 growthbusinesses (restated) at CER* (restated) at CER* ‚£m ‚£m ‚£m ‚£m Revenue 160.8 162.6 2.1% 325.9 332.3 3.0%Operating profit 19.7 19.5 4.8% 41.1 40.7 5.9%Operating margin 12.3% 12.0% 12.6% 12.2%%*Constant exchange ratesSecond quarter sales grew 2.1% on the prior year, despite thechallenging market conditions in the Americas, although monthly year on yearsales per day growth increased through the quarter. First half sales growthwas 3.0%. Year on year improvements in operating margins reflect continuedcontrol over costs and operational gearing in the first half was 21.9%. Theadverse impact on operating profit in the second quarter and first half fromthe translation of overseas results was ‚£0.7 million and ‚£1.9 millionrespectively, due principally to the relatively weak US dollar.The implementation of the new web front end across the Americas atthe end of last year and the successful roll out to Europe and Asia Pacific inApril 2007, is now having a significant impact on our web sales, with secondquarter web sales up 30% on the prior year. Total eCommerce sales accountedfor 27% (Q2 2006/7: 22%) of total MDD sales in the quarter.The AmericasNewark and MCM. Q2 07/8 Q2 06/7 Q2 growth H1 07/8 H1 06/7 H1 growth at CER* at CER* ‚£m ‚£m ‚£m ‚£mRevenue 78.5 82.9 0.4% 159.4 171.5 1.4%Operating profit 6.9 7.2 4.5% 14.8 15.5 6.5%Operating margin 8.8% 8.7% 9.3% 9.0%%*Constant exchange ratesStatistics from the Semiconductor Industry Association (SIA) show ayear on year decline in billings in the Americas in the second quarter, withother market indicators also showing a slowdown in growth rates in the period.Despite the challenging market conditions, sales in the second quarterincreased on the prior year, with first half sales growth of 1.4%. At constantexchange rates, the sales increase in the first half was ‚£3.3 million, and theoperating profit increase was ‚£0.9 million. Operating margin in the first halfof 9.3% compared with 9.0% last year, with operational gearing remainingstrong.
During the second quarter, Newark continued its focus on the EDE segment with the launch of a programme promoting over 100,000 products from the Farnell business in to the North American market. As the EDE strategy gathers traction, we are attracting quality management who will help to accelerate our transition programme as we transform the business model. Targeted marketing, together with sales process and customer database improvements, have continued to drive strong sales growth from the small customer segment, which grew 19% in the second quarter year on year. Newark's annual catalogue, scheduled for delivery in the third quarter, will promote over 24,000 new products, many of which will target the EDE segment.
Web sales in the Americas for the second quarter were up 21% on theprior year. This reflects the success of the new web platform, where wecontinue to register thousands of new customers each month and are receivingvery positive feedback. Search engine marketing continues to drive increasedweb traffic and attract new customers. Further enhancements are planned forproduct data and search functionality in the next quarter.
Newark's second quarter sales were flat year on year despite the challenging market conditions.
MCM's second quarter sales were up 5.9% year on year reflecting the benefits of advertising campaigns, web marketing and the issue of a first ever summer catalogue, which has been positively received. Web sales continue to grow strongly, up 29% over the prior year, with total eCommerce sales now accounting for 42% of total sales.
Europe and Asia PacificFarnell and CPC.Continuing Q2 07/8 Q2 06/7 Q2 growth H1 07/8 H1 06/7 H1 growthbusinesses (restated) at CER* (restated) at CER* ‚£m ‚£m ‚£m ‚£mRevenue 82.3 79.7 3.9% 166.5 160.8 4.7%Operating profit 12.8 12.3 4.9% 26.3 25.2 5.6%Operating margin 15.6% 15.4% 15.8% 15.7%%* Constant Exchange Rates
Sales from continuing operations were up 3.9% in the second quarter. The operating margin of 15.6% was ahead of last year, reflecting continued cost control.
Revenue by region Q2 07/8 Q2 06/7 Revenue H1 07/8 H1 06/7 RevenueContinuing (restated) growth (restated) growthbusinesses ‚£m ‚£m ‚£m ‚£mUK (including 43.4 42.7 1.5% 87.7 85.5 2.6%exports)Mainland Europe 31.4 28.9 10.5% 64.1 59.3 10.6%Asia Pacific 7.5 8.1 -7.1% 14.7 16.0 -6.1%Latest available market data from the Association of FranchisedDistributors of Electronic Components (AFDEC) indicated a year on year declinein sales in the UK for the second quarter. The division's UK sales (includingexport) increased 1.5% in the second quarter and 2.6% in the first half. CPCcontinued to perform well in the second quarter, with sales up 4.8% and firsthalf sales up 4.6%, despite tough comparators. This was driven primarily bydirect marketing initiatives, web activity and an emphasis on expanding thecustomer base. CPC's web sales growth accelerated to 35% year on year and thebusiness saw a record number of unique visitors to the web site, up 49% on thesame period last year. Sales through the Farnell brand in the UK finished thequarter showing positive growth despite a slight decline in the first part ofthe period.In mainland Europe, Farnell continued its strong performance withsecond quarter sales up 10.5%, the seventh consecutive quarter of double digityear on year growth. This reflects benefits from marketing activities, salesinitiatives, growth in new product sales and a strong web performance, all ofwhich have contributed to the development of our differentiated EDE serviceproposition and which are expected to produce further growth going forward.Following the launch of the new web front end in April 2007, websales have out-performed expectations, with second quarter growth for thedivision of 33%. Year on year web sales in France grew 85% and in Holland 41%,with some countries now transacting over half their sales through eCommercechannels. Enhancements have continued to improve further the speed, simplicityand search capabilities of the web platform and to increase performance andreliability. Total eCommerce sales in the quarter accounted for 36% of totalsales for the division.Sales in the Asia Pacific region were down 7.1% in the secondquarter. The transition of the China business from its mainly MRO, lowermargin, customer base to become more focused on the growing, higher margin EDEsegment, continued to make progress during the quarter. The business is nowable to offer next day delivery to most Chinese cities, and over 90% of itssales are RoHS compliant. As anticipated, this phase of our strategy resultedin a sales decline in the quarter, albeit at a lower rate than the firstquarter. In the Australian and New Zealand markets, Newark recently launched adedicated web business (our first web-only business) offering customers inthese increasingly cost competitive markets access to US pricing and stock.
Industrial Products Division (IPD)
Q2 07/8 Q2 06/7 Q2 growth H1 07/8 H1 06/7 H1 At CER* growth at ‚£m ‚£m ‚£m ‚£m CER*Revenue 18.1 18.4 7.1% 36.6 37.3 8.1%Operating profit 3.5 3.3 12.9% 7.0 6.6 16.7%Operating margin 19.3% 17.9% 19.1% 17.7%%
*Constant exchange rates
Sales grew 7.1% in the second quarter reflecting the continuing strong performance from Akron Brass. At constant exchange rates, operating profit was 12.9% ahead of last year, with an improvement in operating margin to 19.3%.
Akron Brass
Akron Brass sales grew 12.5% in the second quarter. The business benefited from the tail end of the strong order intake from North American fire equipment manufacturers in the fourth quarter of last year, driven by changes in regulatory requirements. In addition, orders continued strongly from the international market with new opportunities in South America and Asia. Operating margin was ahead of last year reflecting continued efficiencies within the manufacturing operation, including improved assembly processes.
TPC Wire & CableTPC's second quarter sales were up 7.1% year on year as a result ofthe continuing successful diversification into non automotive markets. Salesto new markets, including utilities, mechanical assemblies and government,increased 30%. Sales to the domestic automotive market increased 14% as aresult of a focus on improving automotive plant sales and increased productofferings. The business continued to successfully control costs and maintainmargins despite rising material costs.
Board Additions
As announced on 21 June 2007, Dennis Millard joined the Board on 1 September 2007 as a non-executive director. Mr Millard is a non-executive director and Deputy Chairman of Smiths News plc, a non-executive director of Debenhams plc, Xchanging plc and EAG Limited and previously a non-executive director of Exel plc and Finance Director of Cookson Group plc.
We also announced on 3 August 2007 the appointment of Paul Withersas a non-executive director, with effect from 1 September 2007. Mr Withers isa non-executive director of Hyder Consulting plc and advisor to a number ofprivately owned manufacturing companies. From 2000 to 2006 he was a main boarddirector and Group Managing Director, Emerging Markets, at BPB plc.
Risk and uncertainties
The principal risks and uncertainties facing the Group for the remaining six months of the year have been, and are as at the date of this report:
RoHS legislation
The Group continues to regard the legislation implementing the EUDirective on the Restriction of the use of certain Hazardous Substances inelectronic and electrical equipment (the RoHS Directive), as an opportunityand a risk. The transition to a compliant stock holding brings with it thepotential risk of stock write-offs in excess of the provisions made. The Grouphas committed considerable resource to managing this risk and its approach tostocking levels and write-offs has been closely monitored, carefully managedand well communicated. The programme to reduce levels of any write-off ofstock continues to be successful in the EU and to make good progress in NorthAmerica.Market migration
The Group continues to mitigate the risk of its core EDE and MRO markets migrating to lower cost economies by increasing growth in the EDE segment of the Group's customer base, together with increasing presence in China and Eastern Europe.
Systems and infrastructure
A significant proportion of customer orders are despatched from the Group's distribution facilities in South Carolina, US and Leeds, England. The Group minimises the potential impact of damage to, or destruction of, these facilities through physical measures to restrict loss, business continuity planning and, in the case of the UK facility, alternative supply from the Group's Liege warehouse in Belgium.
The Group continues to review its IT infrastructure and develop plans to address and, where relevant, test and rectify areas of potential weakness.
Competitive pressures
The Group's MDD Division faces numerous competitors in a fragmentedmarket. It is therefore fundamental that the Division's proposition to itscustomers remains attractive and at the forefront of its chosen markets. TheGroup responds to the risk that it fails to do so by seeking to ensure that itis continually aware of market developments and that its customer propositionis attractive, appropriately focused, and differentiated from that of itscompetitors. Recent upgrades to its web platform in Europe and North Americawere effected in response to customer demand for a multi-channel approach toenhance flexibility.Foreign currencyAs a result of the proportion of the Group's trade which takesplace in North America, the Group's reported results could be adverselyaffected by a major weakening of the US dollar against sterling. This profittranslation risk is approximately ‚£0.25 million per annum of operating profitfor each one ƒ¯¢â€š¬‚ cent movement in the exchange rate. The Group has denominateda significant proportion of its external borrowings in US dollars in order tomitigate this risk and provide a hedge against dollar denominated operatingcash flows and the Group's US investments.
Human resources
As a service business, Premier Farnell relies heavily on itsemployees and mitigates the risk implicit in this reliance by seeking toattract and retain personnel at key management levels. The Group invests intraining and career development and has adopted processes to ensure thatemployees have structured input on their past and expected performance. Thisenables the Group to retain staff and promote internally when opportunitiesarise. Where appropriate, the Group recruits externally to ensure that we havethe best and most experienced management in our fields of expertise. The Groupencourages open communications with employees and seeks to motivate employeesand align their interests with those of the Group, involving a cross sectionof employees in the strategic decision making process and relating pay toperformance for many.
Legal risks
The Group's risk of non-compliance with its legal obligations isincreased by the number of countries in which it operates and the large numberof customers and suppliers with whom it deals. The Group addresses this riskthrough a variety of controls, including reviews and training by its in-houselegal department, advice from outside counsel where appropriate, the work ofits Internal Audit function and internal reporting on areas of potentialnon-compliance.
Outlook
We continue to make good progress with the rigorous implementation of our business strategy and are especially pleased with the 30% increase in web sales in the quarter and our success in winning major new franchises.
Whilst market conditions in North America in the second quarterwere rather more challenging than in the first quarter, we delivered growthacross all divisions with double digit growth in pre-tax profit and earningsper share, at constant exchange rates. The start of the third quarter has seenimproving year on year sales growth compared to the second quarter. Weanticipate delivering a second half performance in line with our expectations.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, the effect of RoHS and similar legislationand regulatory enactments, recruitment and integration of new personnel, theimplementation of cost-saving initiatives to offset current market conditions,continued use and acceptance of e-commerce programs and systems, the abilityto expand into new markets and territories, the implementation of new salesand marketing initiatives, changes in demand for electronic, electrical,electromagnetic and industrial products, rapid changes in distribution ofproducts and customer expectations, the ability to introduce and customers'acceptance of new services, products and product lines, product availability,the impact of competitive pricing, fluctuations in foreign currencies, andchanges in interest rates and overall market conditions, particularly theimpact of changes in world-wide and national economies. The Group does notintend to update the forward-looking statements made herein.
Condensed Consolidated Income Statement
For the second quarter and half yearended 29th July 2007 2007/8 2006/7 2007/8 2006/7 2006/7 Second Second First First Full quarter quarter half half year unaudited
unaudited unaudited unaudited unaudited
(restated) (restated) (restated) Notes ‚£m ‚£m ‚£m ‚£m ‚£m Continuing operationsRevenue 4 178.9 181.0 362.5 369.6 723.3Cost of sales (108.1) (109.6) (218.6) (223.9) (437.8)Gross profit 70.8 71.4 143.9 145.7 285.5Net operating expenses (50.3) (51.0) (101.2) (103.2) (202.4)Operating profit 4 20.5 20.4 42.7 42.5 83.1
Finance income (interest receivable) 0.2
0.2 0.3 0.3 0.6Finance costs- interest payable (2.8) (3.6) (5.7) (7.4) (13.6)- preference dividends (1.5) (1.7) (3.1) (3.4) (6.7)
- premium on redemption of preference shares (0.3) (0.3) (0.6) (0.6) (1.4)- gain on purchase of preference shares 5 0.2
- 0.2 - 0.3Total finance costs (4.4) (5.6) (9.2) (11.4) (21.4)Profit before taxation 16.3 15.0 33.8 31.4 62.3Taxation 6 (5.3) (4.9) (10.9) (10.1) (20.0)
Profit after taxation from continuing operations 11.0 10.1 22.9 21.3 42.3Profit/(loss) after taxation from discontinuedoperations 7 - 0.2 (13.5) 0.1 10.1Profit for the period (attributable to ordinary shareholders) 11.0 10.3 9.4 21.4 52.4 Earnings per share 8Basic 3.0p 2.8p 2.6p 5.9p 14.4pDiluted 3.0p 2.8p 2.6p 5.9p 14.4p Earnings per share from continuing operations 8Basic 3.0p 2.8p 6.3p 5.9p 11.6pDiluted 3.0p 2.8p 6.3p 5.8p 11.6p Ordinary dividendsInterim - proposed 4.0p 4.0p 4.0pFinal - proposed 5.0pPaid 5.0p 5.0p 9.0p
Impact on shareholders' funds (‚£m) 18.2 18.1 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 7.
Condensed Consolidated Statement of Recognised Income and Expense
For the second quarter and half year ended 29thJuly 2007 2007/8 2006/7 2007/8 2006/7 2006/7 Second Second First First Full quarter quarter half half year unaudited unaudited unaudited unaudited audited Notes ‚£m ‚£m ‚£m ‚£m ‚£m Profit for the period 11.0 10.3 9.4 21.4 52.4 Net exchange adjustments (0.3) (0.7) - (0.7) (0.6)Actuarial gains on pensions and other post-retirement obligations - - - - 12.2Deferred tax on actuarial gains - - - - (4.4)Deferred tax arising on purchase of preferenceshares 0.1 - 0.1 - 0.3Net (losses)/gains not recognised in theincome statement 10 (0.2) (0.7)
0.1 (0.7) 7.5
Total recognised income/(expense) forthe period 10.8 9.6
9.5 20.7 59.9
The notes on pages 14 to 17 form an integral part of this unaudited condensed consolidated interim financial information.
Condensed Consolidated Balance SheetAs at 29th July 2007 29th July 30th July 28th January 2007 2006 2007 unaudited unaudited audited Notes ‚£m ‚£m ‚£mASSETSNon-current assetsGoodwill 30.2 49.8 49.6Other intangible assets 18.6 22.6 22.2
Property, plant and equipment 54.9 62.3
58.8Retirement benefit asset 56.3 50.8 56.8Deferred tax assets 0.5 0.5 0.2Total non-current assets 160.5 186.0 187.6 Current assetsInventories 155.3 169.8 162.7Financial assets 9 0.4 - -Trade and other receivables 114.4 134.1 127.9Cash and cash equivalents 9 30.2 32.8 32.2 300.3 336.7 322.8
Assets relating to discontinued operation - 14.9
-Total current assets 300.3 351.6 322.8 LIABILITIESCurrent liabilitiesFinancial liabilities 9 (0.6) (1.4) (11.1)Trade and other payables (82.4) (96.0) (94.9)Current tax payable (27.3) (35.5) (28.0)Short-term provisions - (2.2) (0.8) (110.3) (135.1) (134.8)
Liabilities relating to discontinued operation - (6.4)
-Total current liabilities (110.3) (141.5) (134.8) Net current assets 190.0 210.1 188.0 Non-current liabilitiesFinancial liabilities 9 (288.5) (348.8) (302.4)
Retirement and other post-employment benefits (28.1) (36.8)
(29.6)Deferred tax liabilities (29.7) (23.0) (30.7)Other provisions - (0.9) (0.9)Total non-current liabilities (346.3) (409.5) (363.6) NET ASSETS/(LIABILITIES) 4.2 (13.4) 12.0 EQUITYOrdinary shares 18.2 18.2 18.2
Equity element of preference shares 17.7 19.9
18.4Share premium 23.0 21.4 21.6Capital redemption reserve 1.7 0.8 1.4Hedging reserve 0.4 (0.1) (0.1)
Cumulative translation reserve (3.0) (3.0)
(2.9)
Retained earnings (53.8) (70.6)
(44.6)
SHAREHOLDERS' FUNDS/(DEFICIT) 10 4.2 (13.4)
12.0
The notes on pages 14 to 17 form an integral part of this unaudited condensed consolidated interim financial information.
Condensed Consolidated Cash Flow Statement
For the second quarter and half year ended29th July 2007 2007/8 2006/7 2007/8 2006/7 2006/7 Second Second First First Full quarter quarter half half year unaudited unaudited unaudited unaudited unaudited (restated) (restated) (restated) Notes ‚£m ‚£m ‚£m ‚£m ‚£m Cash flows from operating activitiesOperating profit from continuing operations 20.5 20.4 42.7 42.5 83.1Depreciation and amortisation 5.0 4.6 9.8 9.4 18.7Changes in working capital (1.2) 0.4 (8.4) (8.7) (5.8)Additional pension scheme funding (UK definedbenefit plan) (0.8) (0.4) (1.5) (0.9) (2.4)Other non-cash movements 0.1 0.3 0.4 0.6 (1.8)Cash generated from continuing operations 23.6 25.3 43.0 42.9 91.8Cash generated from discontinued operations (0.7) (1.0) (1.0) (0.4) (1.2)Total cash generated from operations 22.9 24.3 42.0 42.5 90.6Interest received 0.1 0.2 0.3 0.4 0.6Interest paid (4.3) (7.4) (5.9) (7.9) (14.1)Dividends paid on preference shares (3.1) (3.4) (3.1) (3.4) (6.7)Taxation paid (9.1) (5.7) (12.4) (8.2) (18.7)Net cash generated from operating activities 6.5
8.0 20.9 23.4 51.7
Cash flows from investing activitiesDisposal of business 7 (1.3) - 24.5 - 20.4Proceeds from sale of property, plant andequipment 0.1 1.8 0.1 2.1 5.1Purchase of property, plant and equipment (0.9) (1.8) (3.3) (3.0) (7.4)Purchase of intangible assets (computer software) (2.0) (1.6) (4.2) (2.7) (7.0)Net cash (used in)/generated from investingactivities (4.1)
(1.6) 17.1 (3.6) 11.1
Cash flows from financing activitiesIssue of ordinary shares 0.8 0.4 1.4 1.1 1.3Purchase of ordinary shares 10 (2.5) - (2.5) - -Purchase of preference shares 5 (3.6) - (3.6) - (8.4)New bank loans 21.4 78.9 21.4 78.9 78.9Repayment of bank loans - (83.8) (27.8) (85.8) (115.1)Dividends paid to ordinary shareholders (18.2) (18.1) (18.2) (18.1) (32.6)Net cash used in financing activities (2.1)
(22.6) (29.3) (23.9) (75.9)
Net increase/(decrease) in cash, cash equivalentsand bank overdrafts 0.3 (16.2) 8.7 (4.1) (13.1)Cash, cash equivalents and bank overdrafts atbeginning of period 29.5 47.1 21.3 35.6 35.6Exchange losses (0.1) 0.7 (0.3) 0.1 (1.2)Cash, cash equivalents and bank overdrafts atend of period 29.7
31.6 29.7 31.6 21.3
Reconciliation of net financial liabilitiesNet financial liabilities at beginning of period (281.3) (330.1) (330.1)Net increase/(decrease) in cash, cash equivalentsand bank overdrafts 8.7 (4.1) (13.1)Decrease in debt 6.4 6.9 36.2Decrease in preference shares 3.6 - 8.4Premium on redemption of preference shares (0.6) (0.6) (1.4)Derivative financial instruments 0.5 0.1 0.1Exchange movement 4.2 10.4 18.6Net financial liabilities at end of period 9
(258.5) (317.4) (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 7.
The notes on pages 14 to 17 form an integral part of this unaudited condensed consolidated interim financial information.
Notes
1 General information
Premier Farnell plc (the "Company") is a company incorporated and domiciled inthe UK and is listed on the London Stock Exchange. The address of theCompany's registered office is Farnell House, Forge Lane, Leeds, LS12 2NE, England. TheCompany's registered number is 876412.
This condensed consolidated financial information was approved for issue on 11th September 2007.
This interim financial information does not comprise statutory accounts withinthe meaning of Section 240 of the Companies Act 1985. Statutory accounts forthe financial year ended 28th January 2007, were approved by the Board ofDirectors on 28th March 2007, and delivered to the Registrar of Companies. Thereport of the auditors on those accounts was unqualified and did not contain any statementunder Section 237 of the Companies Act 1985. Copies of the Company's AnnualReport 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.
2 Basis of preparation
This condensed consolidated financial information for the second quarter andhalf year ended 29th July 2007, has been prepared in accordance with theDisclosure and Transparency Rules of the Financial Services Authority and with IAS 34,Interim Financial Reporting, as adopted by the European Union. This condensedconsolidated financial information should be read in conjunction with theconsolidated financial statement included in the Company's Annual Report andAccounts for the financial year ended 28th January 2007, which have been prepared inaccordance with International Financial reporting Standards (IFRSs) as adoptedby the European Union. The interim financial information has not been audited orreviewed by auditors pursuant to the Auditing Practices Board's guidance onReview of Interim Financial Information.
3 Accounting policies
The accounting policies adopted are consistent with those of the consolidated financial statements for the year ended 28th January 2007, as described in those annual financial statements.
The following new standards, amendments to standards or interpretations are mandatory for the first time for the financial year ending 3rd February 2008 and are relevant to the Group.
- IFRS 7, Financial Instruments: Disclosures, and IAS 1, Amendments to Capital Disclosures, both effective for annual periods beginning on or after 1st January 2007.
The full IFRS 7 disclosures, including the sensitivity analysis to market risk, and capital disclosures required by the amendment of IAS 1, will be given in the annual financial statements;
- IFRIC 8, Scope of IFRS 2, effective for annual periods beginning on or after1st May 2006. This interpretation has not had any impact on the recognition ofshare-based payments in the group; and- IFRIC 10, Interims and Impairment, effective for annual periods beginning onor after 1st November 2006. This interpretation has not had any impact on thetiming or recognition of impairment losses.
The following new standards, amendments to standards or interpretations are mandatory for the first time for the financial year ending 3rd February 2008 but have no material impact to the Group.
- IFRIC 7, Applying the Restatement Approach under IAS 29, effective for annual periods beginning on or after 1st March 2006; and
- IFRIC 9, Reassessment of Embedded Derivatives, effective for annual periods beginning on or after 1st June 2006.
The following new standards, amendments to standards and interpretations havebeen issued, but are not effective for the financial year ending 3rd February2008, and have not been early adopted.
- IFRIC 11, IFRS 2 - Group and Treasury Share Transactions;
- IFRIC 12, Service Concession Arrangements; and
- IFRS 8, Operating Segments.
4 Segment information (continuing operations)
2007/8 2006/7 2007/8 2006/7 2006/7 Second Second First First Full quarter quarter half half year unaudited unaudited
unaudited unaudited unaudited
(restated) (restated) (restated) ‚£m ‚£m ‚£m ‚£m ‚£m Revenue
Marketing and Distribution Division
Americas 78.5 82.9
159.4 171.5 329.3
Europe and Asia Pacific 82.3 79.7
166.5 160.8 320.6
Total Marketing and Distribution Division 160.8 162.6 325.9 332.3 649.9
Industrial Products Division 18.1 18.4
36.6 37.3 73.4 178.9 181.0 362.5 369.6 723.3 Operating profit
Marketing and Distribution Division
Americas 6.9 7.2
14.8 15.5 30.5
Europe and Asia Pacific 12.8 12.3
26.3 25.2 49.1
Total Marketing and Distribution Division 19.7 19.5 41.1 40.7 79.6
Industrial Products Division 3.5 3.3
7.0 6.6 13.7 Head Office costs (2.7) (2.4) (5.4) (4.8) (10.2) 20.5 20.4 42.7 42.5 83.1 Prior year figures have been restated to reflect the reclassification of theBuckHickman business, part of the Marketing and Distribution Division, Europeand Asia Pacific, as a discontinued operation following its disposal on 10th April2007. Further details are given in note 7.
5 Purchase of preference shares
During the second quarter the Company purchased and cancelled 250,000 of itspreference shares at a total cash cost of ‚£3.6 million. Based on the bookvalue and fair value of the instrument at the date of purchase, the financialliability element of the preference shares was reduced by ‚£3.7 million and theequity element by ‚£0.7 million. A gain of ‚£0.2 million was recognised in the income statementbeing the difference between the book value and fair value of the financialliability element at the date of purchase. The gain arising from the difference betweenthe book value and fair value of the equity element of ‚£0.6 million wasrecognised as a movement in retained earnings. A deferred tax credit of ‚£0.1 million arosewhich is recognised through the Consolidated Statement of Recognised Incomeand Expense. A transfer from retained earnings of ‚£0.3 million tonon-distributable reserves was made in order to maintain the legal nominalvalue of share capital.
6 Taxation
The taxation charge for continuing operations represents an effective tax ratefor the period on profit before tax and preference dividends of 29.5% (2006/7:29.0%),being the estimated effective rate of taxation for the financial year ending3rd February 2008.7 Discontinued operations
Profit/(loss) after taxation from discontinued operations comprises:
2007/8 2006/7 2007/8 2006/7 2006/7 Second Second First First Full quarter quarter half half year unaudited unaudited unaudited unaudited unaudited ‚£m ‚£m ‚£m ‚£m ‚£m Current year disposals (BuckHickman) - (0.1) (13.5) (0.5) (0.6)Prior year disposals (Kent) - 0.3 - 0.6 10.7 - 0.2 (13.5) 0.1 10.1 On 10th April 2007, the Group disposed of BuckHickman, part of the Marketingand Distribution Division, Europe and Asia Pacific. Consequently, theBuckHickman business has been reclassified as a discontinued operation and its tradingresults are included in the income statement as a single line below profitafter taxation from continuing operations, with comparatives restated accordingly. The impact ofthe disposal of BuckHickman on the income statement is as follows: 2007/8 2006/7 2007/8 2006/7 2006/7 Second Second First First Full quarter quarter half half year unaudited unaudited unaudited unaudited unaudited ‚£m ‚£m ‚£m ‚£m ‚£mPost tax resultRevenue - 25.4 19.3 51.7 99.8 Gross margin - 7.6 6.0 15.4 30.2Net operating expenses - (7.8) (5.8) (16.1) (31.0)Operating (loss)/profit - (0.2) 0.2 (0.7) (0.8)Taxation - 0.1 (0.1) 0.2 0.2(Loss)/profit after taxation - (0.1) 0.1 (0.5) (0.6) Provisional loss on disposalConsideration (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 - (0.1) (13.5)
(0.5) (0.6)
Net assets disposed comprises:Goodwill allocated to BuckHickman 19.3Intangible assets (computer software) 1.2Property, plant and equipment 2.2Inventories 14.0Receivables 16.8Payables (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 (0.7) (0.9) (1.0) (0.3) (1.1)Net cash flows from investing activities (including net proceeds on disposal) (1.3) (0.1) 24.5 (0.3) (0.7)8 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable toordinary shareholders for the period by the weighted average number ofordinary shares in issue during he period, excluding those shares held by the PremierFarnell Executive Trust. For diluted earnings per share, the weighted averagenumber of ordinary shares in issue is adjusted to assume issue of all dilutivepotential ordinary shares, being those share options granted to employeeswhere the exercise price is less than the average market price of theCompany's ordinary shares during the period.
Reconciliations of earnings and the weighted average number of ordinary shares used in the calculations are set out below.
2007/8 2006/7 2006/7 First First Full half half year unaudited unaudited unaudited (restated) (restated) ‚£m ‚£m ‚£mEarnings per share
Profit attributable to ordinary shareholders 9.4 21.4
52.4
Earnings per share from continuing operationsProfit after taxation from continuing operations 22.9 21.3
42.3 Number Number Number
Weighted average number of shares 363,716,034 363,315,125
363,328,421
Dilutive effect of share options 1,653,381 1,516,352
1,293,627
Diluted weighted average number of shares 365,369,415 364,831,477 364,622,048 9 Net financial liabilities 29th July 30th July 28th January 2007 2006 2007 unaudited unaudited audited ‚£m ‚£m ‚£m Cash and cash equivalents 30.2 32.8 32.2
Unsecured loans and overdrafts (189.1) (239.3)
(210.3)
Net financial liabilities before preferenceshares and derivatives (158.9) (206.5)
(178.1)
Preference shares (100.0) (110.8)
(103.1)
Derivative financial instruments 0.4 (0.1)
(0.1)
Net financial liabilities (258.5) (317.4)
(281.3)
Net financial liabilities are analysed in the balance sheet as follows:
Current assetsFinancial assets (derivative financial instruments) 0.4 -
-Cash and cash equivalents 30.2 32.8 32.2 30.6 32.8 32.2 Current liabilitiesBank overdrafts (0.5) (1.2) (10.9)Other loans (0.1) (0.1) (0.1)
Derivative financial instruments - (0.1)
(0.1) (0.6) (1.4) (11.1) Non-current liabilitiesBank loans (75.1) (114.4) (82.0)5.3% US dollar Guaranteed Senior Notespayable 2010 (32.5) (35.5)
(33.7)
5.9% US dollar Guaranteed Senior Notespayable 2013 (78.3) (85.5) (81.1)Other loans (2.6) (2.6) (2.5)Preference shares (100.0) (110.8) (103.1) (288.5) (348.8) (302.4)
10 Consolidated statement of changes in shareholders' equity
2007/8 2006/7 2006/7 First First Full half half year unaudited unaudited audited ‚£m ‚£m ‚£m Shareholders' funds/(deficit) at beginning of year 12.0 (18.4) (18.4) Profit for the period 9.4 21.4 52.4 Net gains and losses recognised directly in equity 0.1 (0.7) 7.5 Ordinary dividends paid (18.2) (18.1) (32.6) Ordinary shares issued 1.4 1.0 1.2 Purchase of ordinary shares (2.5) - - Purchase of preference shares (note 3): - reduction in equity element (0.7) - (1.5) - gain arising on equity element 0.6 - 1.2 Share-based payments 1.6 1.3 2.1 Derivative financial instruments 0.5 0.1 0.1 Shareholders' funds/(deficit) at end of period 4.2 (13.4) 12.0 During the second quarter, the Premier Farnell Executive Trust acquired1,153,693 of the Company's ordinary shares, through purchases on the LondonStock Exchange for a total consideration of ‚£2.5 million, in order to meet futureobligations under the Company's performance share plan. This amount has beendeducted from shareholders' equity.
11 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 2006/7 Second Second First First Full quarter quarter half half year US dollar 2.01 1.85 1.99 1.81 1.86Euro 1.48 1.46 1.48 1.45 1.47 12 Ordinary dividend
An interim dividend of 4.0 pence per share (2006/7: 4.0 pence per share) will be paid on 17th October 2007 to ordinary shareholders on the register at close of business on 21st September 2007.
Statement of Directors' Responsibilities
The directors named below confirm that, to the best of their knowledge andbelief, this condensed set of financial statements has been prepared inaccordance with IAS 34 as adopted by the European Union, and that the interim managementreport herein includes a fair review of the information required by DTR 4.2.7and DTR 4.2.8.The directors of Premier Farnell plc are listed in the Company's 2007 AnnualReport and Accounts with the exception of the appointment of two new Boardmembers with effect from 1st September 2007, details of which are given on
page 9 tothis interim statement.By order of the BoardHarriet Green Mark WhitelingChief Executive Officer Chief Financial Officer11th September 2007 11th September 2007
PREMIER FARNELL PLCRelated Shares:
PFL.L