e2v technologies reports ‘creditable’ performance but piles up losses
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The high-tech manufacturer e2v technologies said today (8 June) that it had put in a “creditable” performance in response to “challenging” markets.
Reporting its results for the year ended 31 March e2v – which develops and manufactures high-technology electronic components and sub-systems for the aerospace & defence, medical & science, and commercial & industrial sectors – said its programmes to improve customer service and productivity delivered savings of £3.6 million in the year.
Chief executive Keith Attwood (pictured) said: "e2v faced increasingly challenging markets in the final quarter of the year and the group responded with a range of actions delivering a creditable trading performance. The strong cash performance exemplifies our commitment to reducing the debt profile of the group, despite the rapidly softening demand across a range of sectors. Looking forward, conditions remain tough in the first half of the new financial year, though the stronger than normal order book, along with a good order pipeline, is encouraging for the second half. In light of increasing uncertainty in our markets, we are focused on further improving the scalability of our operations during the year."
E2v said it was seeing general market softness with order deferments in the defence sector. In the medical sector, new equipment sales were declining, while demand for spares was flat. The outlook for the industrial sectors remained weak. The company had therefore implemented a range of actions.
The business improvement programme had seen 40 people leave the group in the current financial year and further actions to contain costs, including discretionary spend and reduced working hours, had been instigated in anticipation of making further cost reductions of around £6 million in the current half year.
However, the second half of the financial year ending 31 March 2010 should benefit from a stronger than normal order book for this period, opportunities for defence projects in the order pipeline and strength in specific sectors, including space imaging and the scientific markets, the company said.
Sales for the year ended 31 March were 14% up at £233.2 million (2008: £204.6m) but impairment provisions and the costs associated with the business improvement programme were the primary reasons for a pre-tax loss of £28.4 million (2008: £13.7 million profit).
