Premier Farnell deflated by slipping sales in UK and Europe

 
Michael Bow
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PREMIER Farnell, which distributes electronic parts to engineers, disappointed yesterday with lower third quarter adjusted pre-tax profits versus last year.

The FTSE 250 listed firm, which sells products like batteries and IT parts to customers, said the 18 per cent fall in adjusted pre-tax profit to £17.3m was due to lower revenues from the UK and Europe.

Some 92 per cent of its revenues are generated from marketing and distribution and these parts of the business fell in the region.

The Leeds-based producer, which first listed in London in 1966, said it would cut costs this quarter in a bid to save £4m a year.

“Market conditions remained volatile in September and October and we saw year on year sales declines in those months,” group chief executive Laurence Bain said.

“As a result, our third quarter sales declined 1.6 per cent, in line with that reported in the second quarter.”