19 Jul 2010 07:00
Monday 19 July, 2010
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 2010 to 16 July 2010.
Summary
The Group's trading since the 31 March 2010 year end has been significantly ahead of the comparable period in 2009/10. Current demand levels and order book strength, along with cost control, indicate that this year's trading performance has the potential to be towards the upper end of management's range of expectations.
Electron devices and sub-systems division
Medical and science is ahead of the comparable period, with radiotherapy experiencing continuing strong OEM demand. Commercial and industrial has experienced further growth, reflecting a recovery in the underlying markets. The defence sector is up on the prior period, mainly reflecting short term activity to support the transfer of the operations from the Lincoln site to the Chelmsford site, though order placement continues to be weak.
Imaging division
Commercial and industrial experienced continuing strong demand for machine vision. Medical and science showed growth in scientific imaging, while dental is down from the same period last year. Sales in the space sector were lower due to some technical and order phasing issues.
Specialist semiconductors division
Aerospace and defence experienced continuing growth due to test and assembly services. Commercial and industrial is up compared to last year due to some recovery of overdue orders.
Order book
The order book for delivery over the next 12 months as at 30 June 2010 was £146m (30 June 2009: £127m). The increase of £19m reflects improved underlying demand from certain sectors as well as 'one off' orders of £15m associated with the restructuring. Although overdue orders have reduced, these are still at an unusually high level and should return to normalised levels during the third quarter of this financial year.
Restructuring programme
The restructuring programme continues to progress well and is marginally ahead of plan. Whilst there remains ongoing risk pending the completion of the implementation phase, management currently anticipate that the programme will be delivered in line with plan.
R&D spend
During the course of the strategic review, R&D spend has continued to be restrained.
Financial Position
Net borrowings (see note 4) at 30 June 2010 increased, as anticipated, by £5m from 31 March 2010 to £50m. This reflects the expected working capital changes and operating cash flow being used to fund reorganisation costs.
Strategy Briefing
The Group is executing a three step recovery programme: re-financing the Group; ongoing implementation of the accelerated business improvement programme; and returning the Group to organic growth. A strategy briefing is taking place on 26 July 2010 to analysts and institutional investors, to communicate the outcome of our strategic review and the resulting implementation plans.
Enquiries:
| e2v technologies plc | Tel: +44 (0)1245 493 493 |
| Keith Attwood/Charles Hindson |
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| www.e2v.com |
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| Financial Dynamics | Tel: +44 (0)20 7831 3113 |
| Jon Simmons/Sophie McMillan |
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Notes for editors
1. The next timetabled trading update is the release of the Period End Update on Monday 11th October 2010 followed by the release of the Group's interim results for the six months ending 30 September 2010 on Monday 15th November 2010.
2. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.
3. All financial information included in this release is sourced from management accounts.
4. Net borrowings exclude capitalised borrowing costs.
e2v's objective is to be a global leader in the design and supply of specialised components and sub-systems that enable the world's leading systems companies to deliver innovative solutions for medical & science, aerospace & defence, and commercial & industrial markets.
e2v is organised into three divisions:
Electron devices and sub-systems division
High performance microwave electron devices and subsystems for applications including defence electronic countermeasures, radiotherapy cancer treatment, radar systems, microwave radar, safety and arming devices, industrial heating, satellite communications amplifiers and digital television transmitters.
Imaging Division
Advanced CCD and CMOS imaging sensors and cameras for applications including space, science and life science imaging, industrial process control, intra-oral and panoramic dental X-ray systems, military surveillance and automotive imaging.
Specialist semiconductors division.
Specialist Semiconductors - including logic, memory and microprocessors for high reliability microprocessor and MRAM requirements, in partnership with Freescale Semiconductor and Everspin, mission-critical avionics and defence programs requiring high reliability integrated circuits, high speed data converters and sensor data acquisition utilising mixed signal application specific devices.
The Company is headquartered in the United Kingdom and has six production facilities across Europe and North America. e2v also operates a global network of sales and technical support offices, supported by local distributors and resellers.
Further information is available from www.e2v.com