After failing to grow sales over the five years that followed the credit crunch, e2v (E2V) returned to growth in 2014 and the niche electronics company's new chief executive, Steve Blair, has a plan to keep sales and profits moving forward. But despite tangible signs of progress and a target to double operating profit by 2020, e2v's shares still trade at a paltry rating compared with peers.
- Commercial focus expected to double operating profit by 2020
- Balance sheet strength provides headroom for further acquisitions
- High barriers to entry
- Exposed to structural growth trends
- Trades at a discount to peers
- Exposed to the economic cycle
- US defence budget uncertainty
The Chelmsford-based manufacturer of radio frequency and microwave components came to market in 2004 after being spun out of Marconi two years earlier. While revenues have stagnated, the group has been through a period of cost-cutting and overseas expansion. Under new boss Mr Blair, who joined from Spectris (SXS) in March, the company plans to remove the shackles of its conglomerate past with its 'bringing life to technology' programme, which centres on customer responsiveness, innovation and operational excellence.