Financial Performance Continuing Operations (excludes Akron Brass) 2015/16:
Sales per day growth of 1.7% year-on-year, reflecting growth in Continental Europe and Asia-Pacific, weakness in North America and UK.
Gross profit margin reduction, 2015/16 34.0% (2014/15: 36.5%) due to adverse exchange rate movements, price positioning and product mix.
Adjusted operating profit of £57.4m (2014/15: £73.0m).
Total Operations (including Akron Brass) adjusted operating profit of £73.0m (2014/15: £88.0m) in line with management guidance.
Operational Review:
Sale of Akron Brass for $224.2m completed on 16 March 2016, reducing net debt and enabling increased focus on core distribution business.
On track to deliver expected annualised costs savings of £19m 2017/18.
CEO Appointment:
Jos Opdeweegh joining as Chief Executive 11 April 2016.
Dividend:
Proposed final dividend of 3.6p per share, a reduction of 40% on the prior year. Total proposed 2015/16 dividend of 6.2p a reduction of 40% on the prior year, following previously announced dividend rebasing.
Val Gooding, Chairman, commented:
"We have commenced implementation of a series of actions in the past year to address a challenging period for Premier Farnell. The operational review has already yielded positive results which we will continue to build on. On 16 March 2016, we completed the sale of Akron Brass for $224.2m, enabling the company to reduce its net debt and concentrate on its core activities. We have also rebased the dividend to a level from which we aim to deliver a sustainable and progressive dividend policy.
"Following an extensive global search, we were delighted to announce last week the appointment of Jos Opdeweegh as Chief Executive of Premier Farnell. His strong international experience and track record of value creation provides a strong platform for the next stage of our development."
