Premier Farnell warns annual profits will fall

Electronics and technology products distributor Premier Farnell warned that its full year operating profit for 2015 would be lower than in the previous 12 months.The FTSE 250 group said it expected operating profit to fall to between £86m and £88m for the 12 months to 1 February, from the £91.5m generated last year, adding that full year sales would rise 3.3%.The company cited discounting of the credit-card sized computer Raspberry Pi and strategic initiatives as the main factors weighing on its gross margins, while it warned in November that its full year operating profit would be affected by challenging market conditions in Europe and Asia.Premier Farnell shares plunged 11.28% to 150.30p at 09:54 on Thursday.