Premier Farnell in strong start to year

City A.M. Reporter
Electronic components distributor Premier Farnell said 2011 had started strongly as it posted an expected 70 percent jump in 2010 profit, helped by strong growth in emerging markets.

"Sales momentum from the fourth quarter has continued into the new financial year," the company said on Thursday, adding that group sales were up eight per cent year on year.

"The group is well positioned to deliver sales growth in the new financial year that is in excess of our targeted level of sales growth."

Premier Farnell said while the extent of disruption to the electronics supply chain by the recent tsunami in Japan was not yet fully understood, its Japanese customer base and direct supply chain were very small.

The company, which sells items ranging from batteries to microchips, said 2010 underlying pre-tax profit was £93.3 million pounds, in line with analysts' average forecast of £93.8m.

Sales at Premier Farnell, whose customers include Philips, Microsoft and Nokia, rose 21 percent to 990.8 million, a touch above analysts average forecast of £980.7m.