Business Review
The world in which we live is changing. This change will continue to affect the demands of our customers. Breadth and depth of product range and superior logistics remain important, but increasingly customers are also looking for the latest new-to-market technologies, accurate product data and information, industry leading environmental guidance as well as the services, software and technology solutions that are an integral part of the design engineering workplace.
Markets
The global electronics distribution market in which the Group operates is serviced by high service distributors and high volume distributors.
See Markets
Strategy
At the inception of our strategy three years ago we completed a full strategic review to identify the activities and opportunities that we would target for profitable growth.
See Strategy
Results
Group sales for the financial year were £795.3 million (2009: £804.4 million), reflecting a year-on-year sales decline, based on sales per day for continuing businesses at constant exchange rates, of 9.7%.
See Results
Operations
The challenging global economic environment over the past twelve months impacted the performance of the Division, particularly in the first half of the year. MDD sales were down 9.5% and underlying operating profit was down 26.4% for the year, however for the final quarter of the year the Division returned to strong year-on-year growth at both revenue and underlying operating profit levels.
See Review of Operations
Financial Review
A review of the Group’s results and operations is given in the Review of Operations section. Other financial matters are in Financial Review.
See Financial Review
Risks and Uncertainties
The principal risks and uncertainties facing the Group are provided below. We have taken the opportunity to review how we disclose these risks and uncertainties to more fully reflect the way those risks are managed at Premier Farnell.
See Risks and Uncertainties
Resources and Relationships
Premier Farnell is a high service distributor and a high performing company. This culture of high performance runs throughout the business at every level and is integral to the business’ ability to achieve service excellence, with 99.6% of all customer orders delivered the same day or next day.
See Resources and Relationships
Corporate Social Responsibility Report
At Premier Farnell we believe that behaving as a responsible business and earning the trust of our stakeholders is a significant competitive advantage, particularly during a time when people may have become distrustful of large corporations.
See Corporate Social Responsibility Report
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