Farnell Electronics Plc, Wetherby, Yorkshire has once again produced favourable interim results with pre-tax proft up 35.8% to UKP28.7m on turnover up 77% to UKP250.5m. Increased turnover and sales are in part due to the success of its newly acquired overseas operation, Farnell Electronic Services, which contributed UKP93.7m to group turnover and UKP2.2m to operating profit. Over the last six months the company has completed integration of Astronics in Germany and Compower in Denmark into Farnell Electronic Services operations. The group has secured franchises from SGS Thomson Microelectronics NV in the UK and Italy, and IBM Corp and National Semiconductor Corp in Germany which it forecasts will increase the product supply base to manufacturing customers accross Europe. Further integration is also planned between Farnell Electronic Services in the UK and its overseas counterpart. In terms of overseas catalogue operations, the company says its German outfit has consistently raised its profit levels, France is approaching breakeven on turnover that has more than trebled, and Australia is also doing well, having increased its cash flow while growing market share. The group’s manufacturing division, Farnell Instruments, has according to the company struggled to produce results much above last year. To address this problem its has consolidated manufacturing activities at the Bognor Regis site. In percentage terms Farnell has gone from a position of doing roughly 80% of its business in the UK to a 60-40 split between UK and foreign markets. It plans to continue to expand its worldwide distribution and is currently considering the Far East and the US. It is also looking to diversify beyond electronics into something which has a good margin, can be handled through a warehouse and is capable of being pushed out worldwide.
