PFL.L Regulatory News (PFL)

Premier Farnell plc - Interim Management Statement 12th November 2013 Premier Farnell plc ("the Group"), a global leader in high service distributionof technology products and solutions, today announces its interim managementstatement for the period 5th August to 11th November 2013. The financial andoperational data set out below are in respect of the Group's third quarterended 3rd November 2013. GROUP SALES TRENDS IMPROVING Group sales per day grew 3.3% in the third quarter with all our divisionsreporting improving trends compared to the first half, except for MDD Otherwhere sales improved 2.8% sequentially over the second quarter. Excluding sales of Raspberry Pi, Group sales grew 2.1% year on year in thethird quarter from a decline of 1.4% in the first half. Over nine months, Groupsales excluding Raspberry Pi declined 0.3% year on year. Sales growth(a) Q3 2013/14 9m 2013/14 Europe 4.1% 1.9% APAC 10.5% 10.2% MDD Europe & APAC 5.3% 3.2% MDD Americas -0.3% -1.7% MDD Other 3.4% 4.0% MDD Division 2.8% 1.3% IPD Division(b) 10.5% 6.7% Group 3.3% 1.7% Notes: a. Sales growth is based on sales per day for continuing businesses at constant exchange rates and for like periods. b. Sales growth in IPD division excludes sales resulting from the acquisition of assets of Reach Engineering LLC Europe sales per day grew 4.1% year on year in the third quarter. ContinentalEurope continued to perform well and the UK returned to growth, following theexecution of targeted marketing initiatives and benefitting from our secondquarter inventory investments. Asia Pacific again delivered a strong performance in the third quarter withsales up 10.5% year on year, underpinned by the key emerging markets of Chinaand India. Customer-focused initiatives enabled Asia Pacific to grow its activecustomer base by 13.5% at the end of October, providing the Group withsignificant opportunity to take market share and leverage our existinginfrastructure in the region. Americas' sales per day were broadly flat year on year in the third quarter,despite the impact of the Federal Government shutdown, as we implemented ourtargeted sales and marketing initiatives, whilst also benefitting from oursecond quarter inventory investments. We remain focused on developing ourAmericas business into a digital enterprise and optimising its performance overthe medium term. Other Distribution Businesses continued to perform well with sales growth of3.4% year on year as the impact of year on year comparators eased compared tothe second quarter. Sales growth in our Industrial Products Division (IPD), Akron Brass, increasedin the third quarter to 10.5%. Following its major contract win in the firsthalf, Akron Brass benefitted from sales to the Hindustan Petroleum CompanyLimited, the majority of which will be recognised in the fourth quarter. STRATEGIC PROGRESS The progress made as we execute our strategic vision has delivered activecustomer base growth of 1.0%, whilst service metrics remain at record levels.This reflects the enhancements we have made to our high service offering,including recent investments in inventory. We continue to enrich our customerproposition, such as through the rollout of our new web platform. We have alsomade further progress as we grow our business in emerging markets such asEastern Europe, China and India. FOREIGN CURRENCY IMPACT During the third quarter, sterling strengthened against the US dollar with anaverage exchange rate of £1 = US$1.59. This will have an adverse impactcompared to the first half when the average exchange rate was £1 = US$1.52. Theaverage exchange rate on the Euro was unchanged at £1 = €1.17. A one centmovement in the exchange rate between the US dollar and sterling impacts thetranslation of the Group's operating profit by approximately £250,000 perannum. FINANCIAL POSITION There have been no significant changes to the Group's financial position duringthe period with cash flow and net debt in line with our expectations. SUMMARY & OUTLOOK Laurence Bain, Group Chief Executive Officer, commented: "Sales trends in the third quarter improved across the business compared to thefirst half, despite the impact of the US Federal Government shutdown on theAmericas. We are focused on optimising our financial performance in line with marketconditions and anticipate that our full year operating margin will be broadlysimilar to that achieved in the first half. As we execute our strategy andposition the Group for the longer term, we will continue to seek to drive ouroperating margin towards our targeted range. We have limited forward order visibility, however we continue to expect to growour active customer base, gain market share and position the business forenhanced financial performance." A conference call for analysts and investors will be held at 8.30am on 12thNovember 2013, details for which are as follows: Participant Access: Dial in 5-10 minutes prior to the start time using thenumber / Conference ID below. Confirmation 5979601 Code: Dial-in: +44 (0) 20 3427 1909 For further information, contact: Laurence Bain, Chief Executive Officer Premier Farnell plc +44 (0) 20 7851 4107 Mark Whiteling, Chief Financial Officer Thomas Churchill, Investor Relations Andrew Lorenz FTI Consulting +44 (0) 20 7269 7291 Richard Mountain 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 Annual Report and Accounts are available atannualreport2013.premierfarnell.com. The preliminary results for the 52 weekfinancial year ending 2 February 2014 will be announced on 20 March 2014.