Monday, September 11, 2006
Sales and profits rise for Farnell
Premier Farnell has published its results for the second quarter.
Premier Farnell, the leading global marketer and distributor of electronic, maintenance, repair and operations (MRO) and specialist products and services, has announced its results for the second quarter and half year ended 30th July 2006. Sales in the first half from continuing operations were GBP 421.3 million (2005-06: GBP 377.5 million). Sales per day from continuing businesses increased 10.5% on the prior year, or 9.4% before acquisitions made in the prior year.
Sales in the second quarter from continuing operations were GBP 206.4 million (2005-06: GBP 190.8 million).
Sales per day from continuing businesses increased 10.8% on the prior year, or 10.1% before acquisitions made in the prior year.
In the second quarter, the average exchange rate for the US dollar against sterling was $1.85 (Q2 2005-06: $1.78) compared with the first quarter of $1.76 (Q1 2005-06: $1.91).
At constant exchange rates, the sales increase in the second quarter over the prior year was GBP 18.6 million.
Gross margin from continuing operations in the first half was 38.2% (2005-06: 38.4%), above that achieved in the second half of last year of 37.9%.
Operating profit in the first half from continuing businesses was GBP 41.8 million (2005-06: GBP 33.5 million), producing an operating margin of 9.9% (2005-06: 8.9%).
The gross margin from continuing operations in the second quarter was 38.3% (2005-06: 38.3%), the third consecutive quarter of underlying gross margin improvement.
Operating profit from continuing operations was GBP 20.2 million (2005-06: GBP 16.1 million), producing an operating margin of 9.8% (2005-06: 8.4%).
At constant exchange rates, the increase in operating profit compared with the prior year was GBP 4.4 million.
The net interest payable in the first half of GBP 7.1 million (2005-06: GBP 6.7 million) was covered 5.9 times by operating profit.
Included in finance costs for the first half is a charge of GBP 4.0 million (2005-06: GBP 4.1 million) in respect of the company's convertible preference shares.
Reported profit before tax from continuing operations in the first half was GBP 30.7 million (2005-06: GBP 22.7 million).
At constant exchange rates, profit before tax increased 32.3% year-on-year, significantly ahead of the rate of sales growth achieved.
The taxation charge for the first half was at an effective rate of 29.0% of profit before tax and preference dividends (2005-06: 23.8%).
Return on net operating assets for the first half was 26.2% (2005-06: 24.8%).
Total earnings per share in the first half were 5.9 pence (2005-06: 4.6p).
Earnings per share from continuing operations in the first half were 5.7 pence (2005-06: 4.5 pence).
The board is declaring an interim dividend of 4.0 pence per share (2005-06: 4.0 pence) to be paid on 18th October 2006 to shareholders on the register on 22nd September 2006.
Net cash generated from continuing operations before exceptional items was GBP 43.8 million, 11.5% up on the prior year.
Working capital levels remained stable in the second quarter.
Net cash inflow during the first half was GBP 2.8 million (2005-06: net cash outflow of GBP 0.8 million before the cost of businesses acquired).
Net financial liabilities at the end of the quarter were GBP 317.4 million (29th January 2006: GBP 330.1 million), including GBP 110.8 million attributable to the Company's preference shares.
During the quarter the Group repaid $155 million of 7.2% senior notes by drawing on existing committed bank facilities.
On 31st July 2006, the group completed the disposal of its Kent business, part of the Industrial Products Division, to Barnes Group for cash consideration, before associated costs, of approximately GBP 22 million (on a cash and debt free basis).
Kent is a specialist automotive consumables business with sales in 2005-06 of GBP 40.5 million and an operating profit of GBP 2.1 million.
Premier Farnell, the leading global marketer and distributor of electronic, maintenance, repair and operations (MRO) and specialist products and services, has announced its results for the second quarter and half year ended 30th July 2006. Sales in the first half from continuing operations were GBP 421.3 million (2005-06: GBP 377.5 million). Sales per day from continuing businesses increased 10.5% on the prior year, or 9.4% before acquisitions made in the prior year.
Sales in the second quarter from continuing operations were GBP 206.4 million (2005-06: GBP 190.8 million).
Sales per day from continuing businesses increased 10.8% on the prior year, or 10.1% before acquisitions made in the prior year.
In the second quarter, the average exchange rate for the US dollar against sterling was $1.85 (Q2 2005-06: $1.78) compared with the first quarter of $1.76 (Q1 2005-06: $1.91).
At constant exchange rates, the sales increase in the second quarter over the prior year was GBP 18.6 million.
Gross margin from continuing operations in the first half was 38.2% (2005-06: 38.4%), above that achieved in the second half of last year of 37.9%.
Operating profit in the first half from continuing businesses was GBP 41.8 million (2005-06: GBP 33.5 million), producing an operating margin of 9.9% (2005-06: 8.9%).
The gross margin from continuing operations in the second quarter was 38.3% (2005-06: 38.3%), the third consecutive quarter of underlying gross margin improvement.
Operating profit from continuing operations was GBP 20.2 million (2005-06: GBP 16.1 million), producing an operating margin of 9.8% (2005-06: 8.4%).
At constant exchange rates, the increase in operating profit compared with the prior year was GBP 4.4 million.
The net interest payable in the first half of GBP 7.1 million (2005-06: GBP 6.7 million) was covered 5.9 times by operating profit.
Included in finance costs for the first half is a charge of GBP 4.0 million (2005-06: GBP 4.1 million) in respect of the company's convertible preference shares.
Reported profit before tax from continuing operations in the first half was GBP 30.7 million (2005-06: GBP 22.7 million).
At constant exchange rates, profit before tax increased 32.3% year-on-year, significantly ahead of the rate of sales growth achieved.
The taxation charge for the first half was at an effective rate of 29.0% of profit before tax and preference dividends (2005-06: 23.8%).
Return on net operating assets for the first half was 26.2% (2005-06: 24.8%).
Total earnings per share in the first half were 5.9 pence (2005-06: 4.6p).
Earnings per share from continuing operations in the first half were 5.7 pence (2005-06: 4.5 pence).
The board is declaring an interim dividend of 4.0 pence per share (2005-06: 4.0 pence) to be paid on 18th October 2006 to shareholders on the register on 22nd September 2006.
Net cash generated from continuing operations before exceptional items was GBP 43.8 million, 11.5% up on the prior year.
Working capital levels remained stable in the second quarter.
Net cash inflow during the first half was GBP 2.8 million (2005-06: net cash outflow of GBP 0.8 million before the cost of businesses acquired).
Net financial liabilities at the end of the quarter were GBP 317.4 million (29th January 2006: GBP 330.1 million), including GBP 110.8 million attributable to the Company's preference shares.
During the quarter the Group repaid $155 million of 7.2% senior notes by drawing on existing committed bank facilities.
On 31st July 2006, the group completed the disposal of its Kent business, part of the Industrial Products Division, to Barnes Group for cash consideration, before associated costs, of approximately GBP 22 million (on a cash and debt free basis).
Kent is a specialist automotive consumables business with sales in 2005-06 of GBP 40.5 million and an operating profit of GBP 2.1 million.
# posted by Swathi @ 12:29 AM 
