HIGHLIGHTS
Full year sales per day up 2.6% versus prior year. Sales excluding Raspberry Pi grew 1.0%.
Momentum improved in line with market conditions in the second half and sales per day growth accelerated to 4.4% with all divisions delivering year on year growth.
Full year operating margin was 9.6% in line with our expectations, reflecting strategic focus to optimise business performance. Second half operating margin of 9.7% improved slightly compared to the first half despite two fewer trading days.
- Gross margin declined 0.4 percentage points from the first half but stabilised through the period.
- Efficiency initiatives and ongoing management of costs underpinned operating margin performance.
- Adjusted operating profit was up 1.2% and adjusted EPS grew 4.3% year on year.
Full year cash performance reflected our planned inventory investments to further support customers' requirements.
Strategic progress made in 2013/14 positions the Group for the future:
- Agreement to acquire AVID Technologies, Inc.(e) will enhance technology capability at the front end of design cycle as we support suppliers' new product introduction strategies and extend our business model.
- Signed significant agreements to partner more closely with major embedded suppliers, including Freescale and AMD.
- Continued to develop online user experience with upgrade to web platform successfully implemented in North America. Improved content on the element14 Community driving increased membership and participation levels.
- Enhanced our product range through completion of inventory investments.
- Continued to deliver accelerated sales growth in key emerging markets of China, India and Eastern Europe.
Further investment in 2014/15 to accelerate our growth strategy:
- Build on the investment in our capability at the front end of design cycle through Embest and AVID.
- Development Tool Superstore to be launched, a unique online destination for customers designing new products.
- Enhancing our eCommerce customer interfaces with roll-out of upgraded web platform across Europe and Asia Pacific and further developments in mobile and personalisation.
The Board has approved a final dividend of 6.0p per share (2012/13: 6.0p) resulting in a proposed full year dividend of 10.4p per share (2012/13: 10.4p)
