Essex: Annual profits at technology group e2v ‘in line with expectations’

Chelmsford-based e2v, which supplies imaging, power and semi-conductor products to markets including medical, defence, space, aerospace and industrial, posted adjusted pre-tax profits for the 12 months to March 31 of £30.8million, down from £38.6m the previous year, with revenue from continuing business falling from £219.9m to £196.8m.

However, e2v said net borrowing had been slashed from £30m to 9.8m and its order book stood at a record level.

Bottom-line pre-tax profits, including contributions from businesses now sold, were also in positive territory, at £34.2m against £32m.

Chief executive Keith Attwood said: “The full year trading performance reflected the ongoing restructuring and increased flexibility in our cost base which we have utilised to mitigate the challenging trading environment experienced during the year.

“We have significantly reduced net borrowings and we have built the order book to record levels.

“Looking forward, whilst we expect a slow start, we continue to anticipate modest revenue growth for the coming year, reflecting the strength of our order book. We remain cautious about the broader economic environment, and the potential impact on orders received and delivered in the year.”

Chairman Neil Johnson added: “We are pleased to report performance for the year which was in line with expectations in a challenging trading environment with delayed order placement and slower progress than planned on space programmes.

“Action taken to control costs and implement ongoing restructuring, combined with utilising the flexibility that we established in the group, have helped to maintain operating margins in line with expectations.

“Strong cash generation during the year included the benefit of completing the strategic realignment of the group with the sale of the non-core businesses and has significantly reduced net borrowings to £9.8m.”