Premier Farnell eyes growth in emerging markets

British electronic parts distributor Premier Farnell said strong emerging markets demand and increased market share would see it return to growth this year after it posted profit below expectations in a tough global industrial sector. Premier Farnell, which in July issued a profit warning after sales were hit by the global economic slowdown, said adjusted pretax profit for the year to Jan.29 was 88.5 million pounds ($138.8 million), down 1.3 per cent on last year and below a consensus of 90.7 million in a Reuters poll of 14 analysts. The firm is one of two exclusive distributors of a popular British designed credit card-sized computer named Raspberry Pi, which is seeing increasing demand from around the globe and winning Premier Farnell new customers. “We have delivered pretty much the same level of profit this year in markets much tougher than last year,” Chief Executive Harriet Green told Reuters on Thursday. “We remain cautious on the economic outlook as the market continues to be uncertain and the nature of our business gives us limited forward visibility. However, as comparators become easier from the middle of the year and we benefit from a 53rd week, we expect growth to return this year,” she said. Shares in the FTSE 250 firm, which maintained its full-year dividend at 10.4 pence, slipped 3.4 per cent to 221.1 pence at 0947 GMT, with Panmure Gordon analyst Andy Brown maintaining a sell rating. “Full-year results are a touch disappointing with adjusted pretax profit below expectations. Recent PMI data around the globe has softened suggesting some difficult months ahead. Against that backdrop we stay on the cautious tack,” he wrote. Fourth-quarter profit dropped 11 per cent on last year to 20.3 million pounds, and followed a 7 per cent drop in third-quarter earnings. Sales in the quarter, however, improved by 1.2 per cent from this year’s third quarter. Premier Farnell, which sells products such as batteries, computer parts and security products to engineers in over 100 countries through operations in Europe, North America and Asia Pacific, said sales in its core European market were up 5 per cent on last year, helped by a growing e-commerce business.