Steve Blair took over the hot seat at radio frequency, microwave and semiconductor expert e2v Technologies (E2V) less than three months ago, so had little to do with slightly better-than-expected full-year results. A blueprint for the company's future will be ready "by December", but the former Spectris man is already making his mark.
An initial three-pronged strategy centres on customer focus, operational performance and simplifying the business, which was part of the GEC conglomerate until a management buy-out in 2002. Stripping out the inherent complexity and associated cost is a big job, but essential given the modest revenue growth predicted for this year. Broker Investec Securities expects adjusted pre-tax profit of £35m in fiscal 2015, giving adjusted EPS of 11.8p (from £33.6m and 11.6p in 2014), then mid-single-digit growth after that.
After a strong fourth quarter, operating profit rose 8 per cent to £34.7m - excluding last year's £6.8m gain from the sale of land and the Swiss business. Barcode scanners sold well in Asia, a backlog at the space business was reduced, radiotherapy returned to growth and demand for semiconductors from US defence contractors picked up. e2v starts this year with an order book worth £128m.
E2V TECHNOLOGIES (E2V) | ||||
|---|---|---|---|---|
| ORD PRICE: | 156p | MARKET VALUE: | £338m | |
| TOUCH: | 156-160p | 12-MONTH HIGH: | 173p | LOW: 115p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 75p* | NET CASH: | £0.8m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 201 | -9.7 | -1.7 | nil |
| 2011 | 229 | 25.8 | 9.1 | 3.6 |
| 2012 | 235 | 32.0 | 11.1 | 4.1 |
| 2013 | 200 | 34.2 | 12.5 | 4.1 |
| 2014 | 218 | 33.1 | 11.6 | 4.4 |
| % change | +9 | -3 | -8 | +7 |
Ex-div: 9 Jul Payment: 5 Aug *Includes intangible assets of £76m, or 35p a share | ||||
