Premier Farnell outlook reassures

LONDON (Reuters) - Electronics components distributor Premier Farnell (PFL.L) said market conditions are broadly unchanged since its last quarter, squashing immediate fears of a sector slowdown and making it the biggest mid-cap gainer in London.

The stock rose 5 percent to 176.75p by 8:36 a.m. as it posted first-quarter growth broadly in line with forecasts.

Premier Farnell distributes components such as batteries and diodes internationally to clients around the world and has over 4,000 employees.

"This is yet another strong quarter of growth, far outstripping its competitors and a confident outlook statement that does not indicate a change in market conditions," said Deutsche analyst Andy Chu in a note, with a buy rating.

Shares in the Leeds-based company had fallen 10 percent from a May peak of 186.5p on fears worsening economic conditions in the U.S. and Europe would dent growth.

The stock fell sharply when peer Electrocomponents (ECM.L) said on May 28 its growth had halved in recent months.

Premier Farnell said operating profit rose 6 percent to 24.2 million pounds in the first quarter, slightly short of broker UBS's forecast of 24.6 million pounds.

But the figure was 4.8 percent above Deutsche's operating profit forecast and in-line with broker Cazenove's estimate.

Sales rose 6 percent to 199.3 million pounds in the first quarter to May 4, broadly in line with forecasts.