27th Jan 2006 07:00
Premier Farnell plc 27 January 2006 BuckHickman InOne: results of operating review Premier Farnell, the leading global marketer and distributor of electronic,maintenance, repair and operations (MRO) products and services, announces thatit has concluded the operating review of BuckHickman InOne that was announcedat the time of the Company's Interim Results in September 2005.This review, carried out over five months, has led to the creation of a clearplan for the improvement of BuckHickman InOne's business. The review hasincluded the successful piloting of many of the changes, summarised below, thatwill take place as the business migrates to a new model: * a comprehensive restructuring of the sales and logistics operations is proposed under which BuckHickman InOne's branches will focus solely on delivering sales and customer service by relinquishing responsibility for procurement, local inventory and logistics. These activities will be streamlined through the creation of a number of regional distribution centres, supported by the National Distribution Centre (NDC) in Coventry; * tighter commercial disciplines are being put into place to manage customer contracts. The profitability of a number of these has been examined and contract profitability has already been improved in several cases. In the few instances where profitability remains insufficient and cannot be improved, contracts have been, or will be, terminated in accordance with their terms; * better sourcing is being established through the centralisation of procurement and the streamlining of preferred suppliers; and * a discrete management team is being formed under a newly appointed managing director to lead BuckHickman InOne through these changes and to drive the performance of the business. This team will be in place from 30 January 2006. The proposed migration to this new business model is anticipated to begin inMarch 2006, to be rolled out by region, and to be complete by January 2007. Itis expected to result in an estimated gross headcount reduction of 175positions and will also create up to 50 new positions to meet the skillsrequirements of the new model.An exceptional charge of ‚£3.9million will be made in the current financial yearto cover redundancies and other restructuring costs.Sir Peter Gershon, Executive Chairman commented:"This plan has been developed by a dedicated team of specialists and hasinvolved the piloting of key operational and systems changes that will takeplace. It will create a sharper focus on customers and service. It will alsoincrease discipline, simplify the business, reduce inventory and reduce cost.As these proposals are implemented, we anticipate a progressive improvement inthe business' contribution to the Group." - ends - For further information, contact:Sir Peter Gershon, Executive Premier Farnell plc +44 (0) 20 7851 Chairman 4100 Andrew Fisher, Group Finance Director James Garthwaite, Group Director, Communications Richard Mountain / Andrew Lorenz Financial Dynamics (UK) +44 (0) 20 7269 7291 Brian Rafferty / John Sutton Taylor Rafferty (NA) + 1 212 889 4350 Notes to Editors:BuckHickman InOne is A UK marketer and distributor of tools, consumables andhealth and safety equipment typically needed in industrial workingenvironments. It is a specialist in supply chain management and vendor managedinventory.www.bhinone.comENDPREMIER FARNELL PLCRelated Shares:
PFL.L