2009 Year End Trading Update

6 Apr 2009 07:00



6 April 2009

e2v technologies plc

2009 Year End Trading Update

e2v technologies, the specialist developer and manufacturer of high technology components and sub-systems, is providing this regular period end trading update for the year ended 31 March 2009.

The full year adjusted profit before tax, which includes the contribution from the QP Semiconductor acquisition, is anticipated to be in line with current market expectations. Group revenue for the full year increased by approximately 14% as a result of the acquisition and positive exchange rate movements. The Group order book at the year end increased by 25% to £153m primarily for the same reasons.

Market conditions and trading have remained largely unchanged since the Interim Management Statement was issued in January except as follows: within the Specialist Semiconductor division, whilst QP's strong market position remains unchanged, programme phasing is having an impact on its sales growth. In both the Imaging and the Electron Devices & Subsystems divisions the Group benefited from improved operational execution on contracts. 

Net debt at year end was below £138m and free cash flow for the year is estimated to have doubled to c. £30m. We are in constructive dialogue with our syndicate of relationship banks with regard to minimizing the currency translation risk to debt.

Our priority for the new financial year is to reduce net debt whilst safeguarding both cash and profit generation. A wide ranging programme has been put in place to reduce our cost base by c. £5m, on an annualised basis. This programme includes a reduction in headcount in both the UK and France. One-off costs associated with this programme are anticipated to be c. £5m and these will be provided for in the 2008/09 financial year, with initial benefits of c. £4m in 2009/10. 

Following a review of e2v's portfolio, the Group has decided to seek a buyer for our Lincoln based microwave microelectronics business unit, which forms part of the Sensors division. The formal disposal process has been launched today, with the support of our advisory team. If a deal goes ahead, this is likely to constitute a Class 1 transaction.

The search for a new Group Finance Director to replace Mike Hannant, who will step down from the role on the appointment of a replacement, is progressing well and we will make a further announcement in due course.

Keith Attwood, Chief Executive, commented: "Although e2v's markets are being affected by the global downturn, the company has a strong order book. We continue to actively manage our cost base in the light of greater general uncertainty and have actioned initiatives to reduce debt levels.

Whilst trading in certain sectors is difficult, our sales in others are bearing up well. We believe our exposure to a broad range of end-markets will help insulate e2v in these challenging times."

e2v will announce full year results for the year ended 31 March 2009 on 8th June 2009.

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