PFL.L Regulatory News (PFL)

Premier Farnell plc - Interim Management Statement 14th November 2014 Premier Farnell plc ("the Group"), a global leader in the high servicedistribution of technology products and solutions, today issues its interimmanagement statement for the period 4 August to 13 November 2014. The financialand operational data set out below are in respect of the Group's third quarterended 2 November 2014. Trading performance Over the period, element14 sales per day grew 3.7% year on year, with continuedunderlying momentum in the Americas, strong but moderating growth in AsiaPacific, a robust performance in Continental Europe and the UK market impactedby increased competition. Overall, Group sales per day grew 2.7% (includingRaspberry Pi), principally reflecting a lower contribution from Akron Brassagainst exceptionally strong comparatives. Gross margin declined 0.5 percentage points reflecting softer market conditionsin Asia and Europe as well as the mix of business. We expect gross margin toincrease in the fourth quarter but, given the recent trends through the thirdquarter, we now anticipate that full year operating margin will be slightlybelow prior year levels. Divisional sales growth rates Sales growth Q3 2014/15 Q3 2014/15 Excluding Raspberry Pi element14 Europe 1.0% 1.6% APAC 13.6% 13.1% Americas 1.8% 3.9% 2.5% 3.7% CPC & MCM (MDD other) 9.2% 5.6% Akron Brass (IPD) -5.8% -5.8% Group 2.7% 3.1% Note: Sales growth is based on sales per day for continuing businesses atconstant exchange rates and for like periods. For reference, in the thirdquarter, the average exchange rates for sterling against the US dollar and theEuro were, respectively, £1 = US$1.63 (Q3 2013/14: £1 = US$1.59) and £1 = €1.27(Q3 2013/14: £1 = €1.17). Europe delivered third quarter sales per day growth of 1.6%1 despite morechallenging market conditions throughout Europe in September and October. Wehave strengthened our management team with the appointment of a new BusinessPresident for sales and marketing in Europe. Asia Pacific sales growth remains strong but moderated in the third quarterwith sales per day up 13.1%1. The region's emerging markets provide the Groupwith significant growth opportunities. Americas' sales per day grew 3.9%1 year on year. This was the third consecutivequarter of improved underlying sales growth, following investments in Americas'product range, as well as the implementation of our new web platform in theregion last year. With the launch of further online enhancements over thecoming months, we are confident that our Americas business has the foundationto attract and retain profitable engineering and manufacturing customers anddeliver improved medium term financial performance. CPC & MCM's third quarter sales performance remained strong, up 9.2% year onyear (5.6% ex Raspberry Pi). CPC & MCM have benefitted from selling RaspberryPi by leveraging their product range to `maker' and hobbyist customers. Sales in our Industrial Products Division, Akron Brass, declined 5.8% againstexceptionally strong comparatives as a result of the major contract win withthe Hindustan Petroleum Company Limited in the second half last year. Thecurrent year has seen a delay in a number of larger international projectswhich means that, adjusted for currency, we now expect Akron Brass' full yearsales and operating profit to be broadly consistent with the prior year. AkronBrass continues to execute its strategy and is well placed to drive futurefinancial performance. We remain focused on the execution of our strategic priorities with somenotable progress made through the period: * New web platform now live across Continental Europe; first implementation in Asia completed. * Continued progress to enhance offering at front end of technology: + Sales of development kits rose 24.9% year on year. + Exclusive software distribution agreement signed with Altium to enhance engineering customers' offering. * Refinancing of the company's banking debt completed providing the Group with funding through September 2019. Laurence Bain, Group Chief Executive Officer, commented: "We made good progress in the execution of our strategy in the third quarterwith underlying sales growth from element14 up 3.7% year on year. Gross margindeclined 0.5 percentage points reflecting softer market conditions in Asia andEurope as well as the mix of business during the quarter. Whilst we expectgross margin to increase in the fourth quarter, we now anticipate that theimpact of a softer trading environment and lower gross margin for the year willresult in full year operating margin slightly below prior year levels.Following the completion of the planned strategic investments over theremainder of this year and the global reorganisation of our element14distribution business, the Group will be well positioned to accelerate itstop-line growth and deliver profitability in line with our targeted operatingmargin range of 10% to 12% through-the-cycle." A conference call for analysts and investors will be held at 8.00am on 14November 2014, details for which are as follows: Participant Access: Dial in 5-10 minutes prior to the start time using thenumber / Conference ID below. Confirmation 9381507 Code: Dial-in: +44(0)20 3427 1909 For further information, contact: Laurence Bain, Chief Executive Premier Farnell plc +44 (0) 20 7851 4107Officer Mark Whiteling, Chief FinancialOfficer Thomas Churchill, InvestorRelations Richard Mountain FTI Consulting +44 (0) 20 3727 1374 Premier Farnell's announcements and presentations are published at www.premierfarnell.com together with business information and links to all otherGroup web sites. The 2013/14 Annual Report and Accounts is now available for download atreporting2014.premierfarnell.com. The results for the 52 week financial yearending 1 February 2015 will be announced on 19 March 2015.