Premier Farnell underlying sales growth 2.9%Staff writer ▼ | September 17, 2015
Premier Farnell plc announced its results for the first half of the financial year ending 31 January 2016. Underlying sales growth was 2.9% year on year.
Premier Farnell plc Adjusted operating profit was £41m
Adjusted free cash flow was 8.4% of sales driven by strong working capital management. Adjusted earnings per share of 6.4p were down 11.1% on the prior period.
Full year adjusted operating profit now expected to be in the range £73m to £77m.
Val Gooding, Chairman, commented: “The review announced in July is progressing rapidly. One of the key early decisions is to dispose of Akron Brass which, although an excellent business, does not fit strategically within the portfolio given the Group’s refocus on its core distribution activities. The Board has also given careful consideration to the current shape and capacity of the Group’s balance sheet and we have concluded that it is appropriate to rebase our dividend.
"The Board recognises the significance of the dividend to our shareholders, but also the importance of it being sustainable and progressive and we will therefore target dividend cover in the range 1.5x to 2.0x going forward.
The review has highlighted the extent of change in the business that is necessary to allow it to compete effectively in an increasingly digital market.
"Further work is required to determine the scale, timing, benefits and costs involved, and the Board expects to be in a position to provide this information at the time of its Q3 trading update in December 2015.” ■