BZW criticised over advice to Premier
Friday 31 January 1997
The meltdown in the electronic component distributor's share price continued yesterday as finance director Andrew Fisher went on a hasty tour of City brokers to explain Wednesday's warning, which was finally made only two minutes before the market closed.
Shares in Premier Farnell plunged another 112.5p to 520p yesterday as the market took stock of the company's warning that weak trading conditions in both the US and UK, coupled with the strength of the pound, would reduce profits in the year that ends today to 8 per cent less than most analysts expected.
The role of BZW in the share price collapse is the latest embarrassment for the broker, which was criticised before Christmas for its role in CalEnergy's takeover of Northern Electric and for the way in which it handled a downgraded profits forecast for RJB Mining, another client.
Concerns about trading at Premier Farnell trickled into the market throughout the day on Wednesday after the company failed to show up at scheduled meetings with analysts to discuss trading in the year that was drawing to a close.
Brokers were seething yesterday about what what was described as a bungled statement. One analyst said: "They have been extremely naive and had terrible advice."
The broker said the company appeared to have no understanding of the extent of the disappointment felt in the City, only a year after the company had had to work hard to persuade shareholders of the merits of its ambitious acquisition of the much larger US Premier operation.
Analysts said yesterday's meetings with Mr Fisher, who was deputising for chief executive Howard Poulson, on business in California, were "very disappointing". The company, they said, had not really explained the gap between expectations at the time of the Premier deal and the latest forecast from house broker BZW of about pounds 170m for the year to January 1998.
The company blamed trading at a subsidiary which had been sold in December and currency effects but analysts said a question mark still remained.
Comment, page 21
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...