THE slow recovery in global consumer spending was underlined yesterday when electronics distributor Premier Farnell issued a shock profit warning exactly a year after hailing its climb out of the recession.
Shares in the Leeds-based group plunged 20 per cent to their lowest level in 16 months after it said growth had tailed off in all markets in June, particularly in Europe and North America.
The trading update came a year after chief executive Harriet Green said Premier had come out of the recession “fast, early and well”.
Yesterday the firm, which supplies thousands of components ranging from LEDs to microchips and batteries, said it had seen significant demand from industrial and technology customers in April and early May after the Japanese earthquake but it went on to achieve growth of only 1.4 per cent in May and June.
“As a result of the rapid change in the global business environment since our last statement, and recognising the limited visibility in our business model, the board now expects that second quarter revenue growth will be less than the targeted range of six to eight per cent over the prior year,” it said.