Semiconductor maker e2v Technologies is looking leaner and fitter after having completed a strategic rationalisation. The group also grew underlying sales by a robust 10 per cent in the year – yet its shares trade at a discount to the sector average.
The group has also agreed the disposal of three non-core businesses for £14.7m and this, combined with impressive cash generation, is helping to cut borrowings. Accordingly, analysts at Investec Securities expecting e2v to become "near cash positive" by the end of the current year.
Divisionally, meanwhile, sales at the core RF power solutions unit have stabilised, growing 5 per cent to £86.1m, while revenues from the high reliability semiconductor unit rose 8 per cent to £67.5m.
The group has also been working to widen its geographic footprint, with more than half of sales now being generated outside of Western Europe. Sales in Asia Pacific grew 13 per cent to £34m, while revenues in North America rose 8 per cent to £82.7m – that more than offset contractions in Europe. Although tougher comparatives did mean a 6 per cent fall in sales at the high performance imaging unit.
Investec expects 2013 pre-tax profit of £40.6m, giving EPS of 13.5p (2012: £39.4m/13.4p).
E2V TECHNOLOGIES (E2V) | ||||
|---|---|---|---|---|
| ORD PRICE: | 133p | MARKET VALUE: | £282.7m | |
| TOUCH: | 132-136p | 12-MONTH HIGH: | 151p | LOW: 85p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 62p* | NET DEBT: | 23% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 205 | 13.7 | 12.3 | 7.2 |
| 2009 | 233 | -28.4 | -21.8 | 2.7 |
| 2010 | 201 | -9.70 | -1.66 | nil |
| 2011 | 229 | 25.8 | 9.14 | 3.6 |
| 2012 | 235 | 32.0 | 11.1 | 4.1 |
| % change | +3 | +24 | +22 | +14 |
Ex-div: 11 Jul Payment: 3 Aug *Includes intangible assets of £80.4, or 38p per share | ||||
