Commenting on the results, Harriet Green, Group Chief Executive, said:
"The quarter's profit was in line with our expectations, compared with last
year's strong performance. Although we remain cautious on the global economic
outlook, the business has responded well to the challenging environment and we
remain focused on margin management, improving our cost ratios and investing in
our strategy. As markets remain uncertain it is encouraging to note that our
strategy delivered third quarter operating profit up 40.2% on two years ago
when markets were similarly challenged, with sales up by 21.8% over the same
period.
November sales per day showed progression on Q3 but a small decline from
November of last year. Gross Margin was up from Q3 levels.
The balance sheet has been further strengthened through the successful
refinancing of our bank facilities and the raising of $235m through US private
placement notes. This provides the company with flexibility to repay short term
debt and the confidence to execute its plans.
Through focus on the strategic delivery of our key metrics - web penetration,
growing our EDE active customer base and growth in profitable MRO segments -
Premier Farnell has proven its resilience and agility through the economic
cycle, maintaining an industry leading return on sales and with a track record
of acting swiftly and decisively to shape our business. This will allow us to
continue to generate cash and benefit strongly from the recovery when
confidence returns."
