e2v sees demand soften

Electrical component supplier e2v technologies said that first half trading has been in line with expectations but it is seeing demand soften in the defence market.Underlying revenues for the six months ended 30 September were 16% higher, up 9% on a reported basis, which was helped by one-off revenues of £6m."The broader macro economic environment remains of concern and there are some signs of softening demand," the firm said. This softening is being seen in the RF Power Solutions division, as European demand for electronic countermeasures (hardware used by combat forces to deceive, detect and destroy in-coming hostile threats) continues to be lower.The total order book at 30 September was £146m, lower than the £167m seen on the same day the year before, reflecting a £7m reduction in the level of one-off orders and the cycle of multiyear radiotherapy order of £9m.By 13:49, shares were trading 1.29% lower at 96p.Nevertheless, brokerage Investec says that trading has been in line with expectations and leaves its forecasts unchanged. "e2v has been significantly improved over the last few years, operationally and financially, and we believe this positions the group relatively well under either recessionary or expansionary conditions."BC