E2V.L Regulatory News (E2V)

30 Jul 2009 07:00



30 July 2009

e2v technologies plc

Interim Management Statement

e2v technologies, the specialist developer and manufacturer of high technology components and sub-systems, is providing this Interim Management Statement covering the period from 1 April to 30 July 2009 to coincide with the Group's Annual General Meeting to be held later today.

Trading since the start of the financial year has been in line with the Board's expectations, at levels lower than those experienced for the comparable period in 2008/09. This reflects general market softness with order deferments in the defence sector, although we have an active opportunity pipeline. In the medical sector, new equipment sales have declined, whilst demand for spares is flat. The commercial and industrial sector has been most seriously impacted by the economic downturn and remains the most challenging. 

Cost reduction activities are delivering the expected levels of savings for the first half and revenue for the full financial year is increasingly second half weighted. 

Net debt at 30 June 2009 decreased from 31 March 2009 by £17m to £120m due to the strengthening of the pound compared with the euro and the dollar and cash generation. To reduce exposure to currency fluctuations, the Group has converted its euro denominated debt into sterling.

Following the announcement on 18 June 2009 that George Kennedy, Chairman, is due to retire, the search for his successor is well underway.

With the continuing uncertainty in our markets, trading remains challenging and we are reviewing the appropriate scale of operations to support the anticipated level of sustainable demand.

As previously announced, e2v continues to work with its financial advisors and is reviewing a range of options for the most appropriate long term capital structure for the Group.

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