LONDON (Alliance News) - e2v technologies PLC Monday increased its interim dividend as it posted rising revenue and a decline in pretax profit in the half year ended September 30.
e2v produces electronic components for the medical, science, aerospace, defence, commercial and industrial markets. It proposed an interim dividend of 1.4 pence, up 7.7% from 1.3 pence.
The company posted revenue, excluding disposal businesses, of GBP98.1 million, up from GBP90.7 million in the previous year. It said that growth in revenue had benefited from increased demand in Asia for industrial cameras. In the US, the company had seen slower demand for semiconductors for defence applications, which it expects to continue into the second half.
Pretax profit declined to GBP10.8 million from GBP14.4 million in the previous year. Revenue growth was offset by increased headcount, foreign exchange losses, and warranty and inventory provisions.
Activity is expected to increase in the second quarter, the company said, which has led to the recruitment of additional staff. Exchange-rate movements in the period led a to currency losses of GBP800,000, e2v said. Warranty and inventory provisions increased due to the launch of new products and the resolution of an issue with a dental product line in the first quarter, e2v said.
The company's full-year trading performance expectations remain unchanged, it said, assuming there is no further deterioration in market conditions. However, e2v said that it would continue to be cautious over the wider economic environment, particularly in the US defence sector.
Earnings per share was 3.8 pence, down from 5.3 pence. Shares in e2v were trading down 1.2% pence at 146.50 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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