Premier Farnell share price dives as Raspberry Pi maker cuts dividend after profits slump and names Jos Opdeweegh new chief executive
The company behind the Raspberry Pi mini computer Premier Farnell has slashed its dividend after profits slumped as pressure from rivals mounts.
Shares fell as much as six per cent in early trading after revealing a final dividend for the year of 3.6 pence per share, down from 10.4 pence per share a year earlier.
Pre-tax profit for the year fell 22 per cent on an adjusted basis to £57.3m while revenue inched up two per cent to £960.1m.
The struggling firm issued two profit warnings last year and ousted chief Laurence Bain.
"Although we continued to face difficult trading conditions in our North America and UK markets, we are making good progress in achieving increased operating efficiency and are on track to deliver expected cost savings of £19m in financial year 2017/2018," said interim chief executive Mark Whiteling.
However, it cited "variable" global market conditions in its outlook for the year ahead, and is "not anticipating any near-term diminution in the competitive pressures on our businesses."
The Leeds-based business named former Neovia Logistics boss Jos Opdeweegh as its new chief, starting in April.
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