E2V.L Share News (E2V)

Electronic components manufacturer e2V Technologies has launched a £56m fund raising at the same time as reporting sharply lower underlying interim profits. The improved balance sheet offset worries about trading and the share price, which has been in decline in recent days, started to recover. Demand for e2v's products continued to decline in the six months to September 2009. Like-for-like revenues fell by 26% compared with the first half of 2007-08 and e2v is assuming that there will be no significant recovery for three years. Stripping out amortisation and foreign exchange gains, the underlying profits fell from £8.52m to £1.56m. The company will raise £22m from a firm placing at 70p a share and a further £34m from a seven-for-nine rights issue at 28p a share - a 60% discount to the placing price. Investors in the placing will be able to apply for shares through the rights issue.Net borrowings had been cut by £32.1m in the past six months. Capital spending was cut back and working capital reduced. That still leaves e2v with net debt of nearly £102m. The cash call will make a significant dent in that figure. New bank facilities totalling £105m have been negotiated. This facility will be available after the cash call is completed and will last until the end of 2012. Costs are being cut and e2v believes that it can reduce its cost base by £26m a year, although there will be a one-off cost of £33m. The company will focus on electron devices, imaging products and specialist semiconductors. Profits are always second half-weighted but the outlook remains uncertain. There are £65m of orders due for delivery in the second half. Leo Quinn is replacing Graham Love as chief executive of QinetiQ Group. The share price initially fell slightly but has powered ahead since then. Quinn has been boss of bank note printer De La Rue for eight years and he will start his new job at the defence technology group on 16 November 2009. A government inquiry yesterday held QinetiQ partly responsible for a crash involving an RAF Nimrod over Afghanistan in 2006 which killed all 14 passengers.FTSE TechMARK - RisersQinetiQ Group (QQ.) 166.50p +16.52%Phytopharm (PYM) 15.25p +10.91%Oxford Instruments (OXIG) 232.00p +10.48%CSR (CSR) 434.00p +7.93%E2V Technologies (E2V) 74.00p +7.25%NXT (NTX) 15.75p +5.00%Skyepharma (SKP) 79.00p +4.29%Wolfson Microelectronics (WLF) 121.25p +2.75%Biocompatibles International (BII) 236.00p +2.61%Antisoma (ASM) 35.50p +2.16%FTSE TechMARK - FallersTrafficmaster (TFC) 31.75p -9.29%Emblaze (BLZ) 50.00p -4.76%Sepura (SEPU) 40.75p -4.12%Dialight (DIA) 188.00p -3.59%GB Group (GBG) 21.25p -3.41%Domino Printing (DNO) 301.50p -3.05%Kofax (KFX) 175.00p -2.78%Optos (OPTS) 92.00p -2.65%Consort Medical (CSRT) 408.00p -2.39%Intec Telecom (ITL) 107.50p -2.27%