LONDON Premier Farnell has seen strong second quarter sales growth performance, with sales per day from continuing operations up 10.8 percent on the prior year and slightly ahead of the seasonally strong first quarter.
In its results for the second quarter and half year to July 30, the company has seen growth in operating profit of 24.8 percent in the first half, significantly ahead of sales growth.
The company has restated its historical results to exclude the Kent business, part of the Industrial Products Division, which was sold on July 31. Revenue for the quarter was £206.4million up from £190.8million in the same period last year. Operating profit at £20.2million, up from £16.1million.
For the first half revenue was £421.3million, up from £377.5million in 2005 with an operating profit of £41.8mllion, up from £33.5million. “Premier Farnell's strong second quarter performance follows the advances made in the first quarter and positions the Group well at the end of the first half,” said Harriet Green, group chief executive. “The year-on-year and sequential quarter-on-quarter growth in sales, and the stable gross margin, are encouraging and based primarily on solid execution of our service fundamentals and the benefit of our RoHS leadership position.”
“The strategic business review, commenced in May, is making good progress as we continue to focus on what we do well – as evidenced by our latest results – and consider what we can improve upon and develop further in the future.” Results of the review are expected in the autumn.
“I am optimistic that the operational progress we have made so far in 2006 will continue. Despite the second half having more challenging comparators and the uncertainty over whether the market will remain as buoyant, we still anticipate making progress in the second half against the comparable period last year.”