Share Name Share Symbol Market Type Share ISIN Share Description
Premier Farnell LSE:PFL London Ordinary Share GB0003318416 ORD 5P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 185.00 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 903.90 29.20 8.10 22.8 687
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 185.00 GBX

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Date Time Title Posts
04/10/201616:49Premier Farnell - Big upside ahead656
23/2/200405:06Heading Down43
27/6/200209:528% fall are the results going to be bad ?1

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typo56: In case you're wondering about the large uncrossing volume tonight, PFL are promoted to the FTSE 250 tomorrow.
cc2014: The share price hit 166.0 for a while this morning a penny above the bid price. Interesting. Lots of trades are still going through at 164.5/164.75 which is higher than you would normally expect in this situation unless Datwyler is soaking them up.
josephrobert: Olivetree’s deal summary from FT Alphaville: Given the presence of activists on the register, and the general underperformance of Premier Farnell stock, the market has often speculated as to a creative outcome for the company. One of the more popular ideas in the last couple of years has been a merger with Electrocomponents (ECM LN). The latter established a new management team only last year, replacing a previous CEO who had run the company for 13 years, so there was hope that such developments could lubricate such a transaction. There were also calls for a break up of Premier Farnell, the pressure was to sell its Akron Brass fire-fighting subsidiary, perceived to be a poor fit with the larger electronics business. This sale was eventually announced in September last year and the details of the sale were confirmed in February 2016. Hence the next step for activists was likely to be consolidation with another industry player – something we are now seeing today. Datwyler has secured irrevocables from 18.5% of Premier Farnell’s register, from JO Hambro, Majedie and (activist) GO Investment Partners. These irrevocables generally release in the event of an offer from a third party that is only 5% better than the Datwyler offer (ie 173.25p). It is worth noting that Electrocomponents equity rating continues to look powerful relative to that of Premier Farnell, so a potential merger could continue to make sense. Rumours of such a transaction have never been far from the market, as recently as 9th October 2015 the press reported such speculation. The perception was generally that GO had taken its stake, post two profit warnings from Premier Farnell, in order to engineer such a tie-up. The industry backdrop continues to appear ripe for consolidation, so such a transaction cannot be entirely ruled out, especially given that Datwyler’s irrevocables are released so easily. With a current market cap of £1.2bn, Electrocomponents is much larger than Premier Farnell, although it is still smaller than Datwyler’s £1.7bn market cap. Electrocomponents217; equity currently trades on some 10.8x EV/EBITDA, compared with Premier’s 6.5x, so it does have a powerful acquisition currency, both on a relative and absolute basis: RBC from FT Alphaville Our view: The 165p cash offer compares well with our previous 155p target and given weak trading, historic issues, management change and gross margin pressures, we feel this is a good price, although wouldn’t rule out a counterbid. We downgrade to Sector Perform and increase our target to 165p in line with the bid from Daetwyler. Key points: Recommended cash offer – Daetwyler has made a recommended cash offer at a 51% premium to last night’s close of 165p per share, which values the group at £792m. This compares to our prior DCF target price of 155p and equates to a calendar 2016E PE of 16x and EV/EBITA of 12x. Shareholders will also receive the 3.6p final dividend payable on 23 June. Management believes it can extract CHF50-70m (£37-51m) synergies from the deal (50% gross profit and 50% cost). Decent price – Given weak trading, the history of disappointments, management change, gross margin pressures, and the cycle – we see this as a good price. However, the valuation is below that of key peer Electrocomponents,(2016E PE 20x, EV/EBITDA 16x). The synergy target is a big number for a business that doesn’t have huge overlap, hence we would think that the synergy number for one of the closer peers e.g. Electrocomponents would be larger – indeed we have previously stated that we think £60m could be achieved by a combination with it, although the new management team has plenty on its plate with its own restructuring plans. Mouser and Digikey in the US also have good overlap and a strong dollar potentially to entice them. As such, despite this being a good price we wouldn’t rule out a counterbid. Q1 Trading weak – PFL has also put out a Q1 trading update – LFL growth was -1.4% down from +0.4% in Q4, with weakness in the UK (-7%) and USA (-9%) offset by Europe (+4.8%) and Asia (+26%). Cost savings do appear to be on track and management has initiated some restructuring in the USA. Downgrade to Sector Perform – Given our view that this is a fair price, we downgrade to Sector Perform and increase our target price to 165p, in line with the offer. This compares to our previous DCF derived target price of 155p.
edmundshaw: BEZ is one I know well. That historic yield is based on a last year's dividend of 28.3p at a share price of 335p. That includes a special dividend of 18.4p and a "normal" dividend of 9.9p. Around 3% yield plus whatever special they give - and the last three years have been good due to the state of the insurance market, there is no guarantee of perennial repetition. BP's dividend yield is in spite of a massive full year loss. If the oil price remains anything like this low that dividend is doomed within 3 years maximum. Laura Ashley is controlled from Malaysia via MUI. That may be fine, but for me the risk based on not knowing the major owner's personal goals there is toouncomfortable. Fenner's share price has fallen by 2/3rds in the last two years. The dividend is maintained though cover is quite low. Nevertheless, on an oil price recovery, and chinese recovery that looks an interesting play, but the yield is high for a reason: risk. I could go on. 5% is a good yield where risk is low. Whether that is the case here is of course another question... yer pays yer money....
simon templar qc: garycook, Think u are right on share price falling. What investors need to do is look at forecast earnings now excluding disposal and forecast dividend. I haven't had time to do the research albeit fairly sure earnings will continue to suffer in a difficult market. The report contained too much uncertainty for my liking. edit: Company has also indicated it will rebase its dividend to 1.5 or 2 times earnings that suggests to me further cuts to come. I base that on reduced eps per share dependant which figure they are using.
market sniper3: Long on PFL Premier Farnell, had my eye on the chart for a while. This article swayed me. Stockwatch: This share looks too cheap By Edmond Jackson | Tue, 9th February 2016 - 12:02 Stockwatch: This share looks too cheap Is there value in electronics distributor Premier Farnell (PFL), given the sale of just one division is fetching 40% of the group's near-£400 million market value? Or, is the de-rating prescient of a wider downturn ahead, with electronics distribution a significant indicator of the business cycle? It was expected to happen, but the US sale of Akron Brass, an Ohio-based fire-fighting equipment business for US $224 million (£155 million) in cash, represented nearly nine times operating profit. On those "attractive" terms, Premier's management can pursue "significant opportunities to improve the group's operational and financial performance", with a view to restoring profits growth in the financial year to 1 February 2017. As global economic indicators waver, the stockmarket is cautious to assume this scenario given a down-dip for Premier's latest financial year, and with the board yet to confirm the extent of a dividend cut. If a recession beckons, then this kind of stock can become a value trap - but if wider sentiment is overly bearish and fails to recognise the positive benefits of cheaper oil for economic demand, then it can recover in 2016. There are both technical and fundamental reasons why. Chart assumes 'saucer' profile The "saucer" is a technical pattern that, according to principle, indicates a stock's price is low and the downward trend has come to a close. In practice, I would not assume economic life accords with deterministic patterns - there is always a risk of force majeure taking over - but charts can be interesting to assess probabilities, especially when you consider fundamentals also. Premier's one-year chart largely accords with the theory, i.e. a sharp drop and "saucer" about three-quarters complete. Strict technicians might prefer more evidence of that, but it's certainly worth watching. Valued lower than major rival The one-year chart for £930 million peer Electrocomponents (ECM) shows far less de-rating, mainly due to a sharp recovery from 172p to 237p. That followed an early October trading update which affirmed that its largest business area, continental Europe, is doing well with 13% revenue growth. Premier is more exposed to difficult markets in North AmericaHowever, North America slipped 3% and Asia Pacific was flat. In its last financial year, Electrocomponents' revenue profile was 35% continental Europe, 29% UK and 24% North America, while Premier's was 46% Americas, 30% UK and 25% Europe and Asia Pacific. Premier's last trading statement on 17 December cited a 6.9% revenue drop in the Americas for its third quarter, offset by 14.9% growth in Asia Pacific and with Europe off just 0.5%. Group revenue edged up 0.5%, or 2.1% annualised. So, while Premier is more exposed to difficult markets in North America, and this likely explains much of the valuation differential, it's not altogether a bad story. Weighing valuations What's perturbing in a macro sense is the extent of drop happening in the Americas (excluding Brazil) despite a 13.6% advance in sales for the Akron Brass fire-fighting equipment business being sold. It exemplifies why stockmarkets are so edgy, after years of exceptional monetary stimulus in the US have apparently had little effect on its industrial base. And South America has its own problems, with low commodity prices and dollar-denominated debts. Only a worsening economic situation can explain why Premier trades on such a low 12-month PEBut, weighing the valuations, only a worsening economic situation can explain why Premier trades on a 12-month forward price/earnings (PE) multiple of about nine times with its stock currently about 102p. A prospective yield of near 6% is covered nearly twice by forecast earnings, and there's strong cash flow backing. By comparison, at 208p, Electrocomponents is on a PE near 16 times, yielding about 5.5% and covered just over once by forecast earnings. It will be interesting to see what Electrocomponents has to say in a trading update due this Wednesday, but, even allowing for some differences in the businesses, that's some valuation contrast. The Premier forecasts are recent, so should significantly factor in earnings due to be lost from the disposal which was first mooted last year. Balance sheets offer explanation Both these groups have made acquisitions i.e. have accumulated goodwill and intangibles. Premier's end-August 2015 balance sheet shows they represented 105% of £81.7 million net assets. At that point there were £59 million short-term financial liabilities and £229.4 million longer-term, hence Premier's recent gearing in the order of 335% versus 45% for Electrocomponents. It would be encouraging to see directors back Premier's improving underlying potential with share purchasesHowever, Premier's interim income statement showed net finance costs clipping barely 20% off operating profit, and the latest £155 million disposal will radically improve the balance sheet. So the market appears to be overlooking this, or could not anyway anticipate the sale proceeds when the stock was de-rating. A cash injection will improve Premier's risk profile and dividend security, in terms of circa 6.0p per share forecast for the full-year, which is consistent with a 40% cut in the interim dividend. Such a payout ought now to be supporting the stock, unless economies lurch lower. 'Buy' case improved I drew attention at 105p in September during the early stage of what now appears a "saucer", with the stock testing 92p amid January's sell-off. The Akron Brass deal deserves noting in this context, given the substantial proceeds. It would be more encouraging to see the directors back their claims as to Premier's improving underlying potential with share purchases - now they should be free of any restrictions around the disposal, although they may still apply with prelims only six weeks away. One is quite reminded of Home Retail Group (HOME), where the market's caution as to its trading outlook has led to a buyer - Sainsbury's (SBRY) - exploiting aspects of underlying value. Premier shares may remain pressured if markets continue to sell off, but if a deflationary scenario applies then it becomes more of a target for rivals seeking growth. For more information see their website. Premier Farnell - financial summary Consensus estimates Year ended 1 Feb 2011 2012 2013 2014 2015 2016 2017 13 months Turnover (£ million) 991 973 952 968 960 IFRS3 pre-tax profit (£m) 93.3 105 69 74.8 69.1 Normalised pre-tax profit (£m) 93.3 88.2 74.7 77 74 58.1 64.3 IFRS3 earnings/share (p) 18 20.9 13.2 13.9 12.8 Normalised earnings/share (p) 18 15.8 14.8 14.5 14.1 10.9 11.4 Earnings per share growth (%) 68.4 -12.4 -6.4 -1.8 -2.5 -22.9 4.6 Price/earnings multiple (x) 7.2 9.4 8.9 Cash flow/share (p) 15.6 18.4 20 12.9 13.3 Capex/share (p) 5.3 6 6 3.7 5.8 Dividend per share (p) 9.6 10.4 10.4 10.4 10.4 6 6 Yield (%) 10.3 5.9 5.9 Covered by earnings (x) 1.9 1.5 1.4 1.4 1.4 1.8 1.9 Net tangible assets per share (p) -5.6 1.8 0.9 3.7 -2.8 Source: Company REFS
eastbourne1982: Simon Templar QC, ECM tells us nothing, anyone expecting good growth from PFL in the short term is living in cloud cuckoo land, if decent growth was on the agenda don't you think the share price would be a lot lot higher ?? The market has priced very challenging trading conditions into PFL. If PFL achieved any growth at all in the next year I'd be delighted. You seem to be expecting the world from PFL yet you wouldn't pay the current valuation, all seems rather bizarre to me.
eastbourne1982: Simon, Your market is making it's own mind up comment is a bit cheap imho. The wider markets tanked today with many FTSE 100 co's dropping 3 - 6%, PFL was very unlikely to escape the carnage. The share price rose 6 - 7% on Friday and even after the drop today is up nearly 10% in around a week, not bad going is it but they I'm only listing the facts. Short term this is likely to be all over the shop however I'm happy to have a position here averaging around £1.06, I will look to add if we hit the low 90p area again.
bs76: At 5.6 (2.6 + 3 which is the worst case scenario) dividend At share price 106, yield is 5.29% when share price was 87.75 (52 week low), yield was 6.38% For yield to be 4.5%, share price has to be 125. Risk and reward is more skewed to upside.
simon templar qc: ECM updated on trading today and sees growth slow to 3% from 5% but margins fall as well. US falls the worse. Could put pressure on PFL share price as both are similar business models.
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