2nd Jun 2008 07:00
2 June 2008
e2v technologies plc
Final results for the year ended 31 March 2008
e2v technologies plc, a leading developer and manufacturer of high-technology electronic components and sub-systems to the medical & science, aerospace & defence, and commercial & industrial sectors, announces its final results for the year ended 31 March 2008.
|
Year ended 31 March 2008 £ million |
Final year ended 31 March 2007 £ million |
% change |
|
|
Revenue |
204.6 |
173.9 |
+18% |
|
Adjusted* profit before tax |
24.2 |
21.7 |
+11% |
|
Profit before tax |
13.7 |
13.7 |
unchanged |
|
Adjusted* earnings per share |
31.05p |
25.82p |
+20% |
|
Earnings per share |
19.36p |
16.46p |
+18% |
|
Full year dividend |
7.70p |
6.95p |
+11% |
Highlights
Record Group revenue up 18%
- Strong performance from Electronic Tubes
- Sensors and Semiconductors growth due to full year contribution from Grenoble acquisition
Adjusted* profit before tax up 11%, gross margin of 35.4%, up from 34.0%
Business improvement programme ahead of schedule
Adjusted* earnings per share up 20%
Full year dividend increased by 11% to 7.70p
Strengthened order book since year end increases confidence in current year outcome
*Adjusted profit is before amortisation of acquired intangibles, business improvement programme costs, share based payment charges, fair value losses on financial instruments, integration and other non-recurring costs associated with acquisitions including exceptional interest charges. Adjusted earnings is adjusted profit less tax impacts where applicable.
Commenting on the results, Keith Attwood, Chief Executive said:
"This is a sound overall performance for the year. e2v is well positioned to capitalise on organic growth opportunities across both product groups, following the integration of the Grenoble business and the restructuring and refocusing of our sales organisation. Our ongoing focus on internal efficiencies further underpins anticipated performance improvement.
We continue to review acquisition opportunities, with a view to strengthening our geographic and market sector positioning.
Overall, we are confident of continued progress through 2008/9."
Further enquiries:
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e2v technologies plc |
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Keith Attwood, Chief Executive Mike Hannant, Group Finance Director |
Today: 020 7269 7291 Thereafter: 01245 493 493 |
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Website: www.e2v.com |
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|
Financial Dynamics |
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Jon Simmons / Sophie Kernon |
Tel: 020 7269 7291 |
Chief Executive's review
Introduction
e2v is focussed on the supply of specialist components and subsystems into the professional electronics market. The Group specifically targets markets that exhibit steady growth, high barriers to entry, require a significant proportion of bespoke design and have limited competition. e2v does not seek to compete in commoditised markets.
e2v is seeking to establish itself as the leading supplier of specialised components within the market sectors we choose to compete in. To achieve this e2v's business strategy has four key aspects:
To focus our resources on high growth/high margin product opportunities in current and adjacent niche market sectors
To extend our scope of supply, where appropriate, thereby maximising revenues from established market positions as well as developing new market positions
To continue our internal focus on productivity improvements
To acquire complementary businesses and technologies to accelerate growth
The Group has three engineering and manufacturing sites in the UK, one in France and one in Switzerland.
Sales throughout the world are achieved through a combination of e2v's own sales and support offices and a network of distribution partners and representatives.
2007/8 has been a year of integration and consolidation, following the acquisition of the Grenoble facility in 2006/7. We have taken steps to reconfigure the organisation in line with the significantly increased size of the Group. In particular, we have restructured our sales teams, improved our processes and systems and refreshed the sales leadership at Group and regional level.
We also launched our "Fit for the Future" business improvement programme in the UK with the principal objective of sharpening up customer service by simplifying product lines and processes. Good progress has been made, though there is more opportunity and the project will continue through 2008/9.
From a trading perspective, of particular strategic relevance was the receipt of our first order, for a subsystem based on our electronic tubes technology, from the US Department of Defence. This is a significant step towards positioning ourselves as a strategic supplier to this important customer.
We continue to review acquisition opportunities with a view to strengthening our geographic and market sector positioning and at the current time, we are in exclusive discussions on one particular project.
As part of our on-going Group wide strategic planning process we are actively reviewing our R&D expenditure from both a risk and reward perspective.
Market Overview
The global market for professional electronic components and subsystems is estimated by e2v to be £3.2bn with a compound average growth rate (CAGR) of c8%. e2v currently participates in £1.8bn of this market, £0.6bn of which is in Europe with a further £0.7bn in the USA and £0.5bn in Asia. The levels of penetration achieved to date by the Group are estimated to be 20% in Europe, 8% in the larger USA market and 5% in Asia. The lower penetration rates in USA and Asia represent significant opportunities for the Group. We are seeking to capitalise on these opportunities by extending our levels of sales and technical support in these regions.
e2v is focussed on three key market sectors; medical and science, aerospace and defence, and commercial and industrial. The largest of these market sectors is aerospace & defence, estimated to be £0.8bn, which is relatively stable with modest growth. e2v has participated in this market for more than 60 years establishing a strong, and in some niches, a market leading position. The next largest sector is commercial and industrial which is estimated to be £0.7bn and this sector has low double digit growth. Whilst e2v has established significant positions in a number of key sub-segments, this sector remains the most competitive. Medical and science is the smallest sector estimated at £0.3bn, again with low double digit growth.
The technologies sold into these markets are reported within two product groups; the sensors and semiconductors product group incorporates imaging, specialist semiconductors, solid-state microwave and a range of specialist sensor technologies. Electronic tubes and associated sub-systems form the second product group.
e2v differentiates itself from competitors by offering customers high levels of bespoke design, high reliability and long term supply of products.
The diversified nature of the business across both geographies and market sectors provides a natural hedge against global volatility.
Group Performance
Reported revenue for the Group increased by 17.7% to £204.6m for the year ended 31 March 2008. The growth is primarily driven by organic growth in electronic tubes and the inclusion of 12 months sales from the Grenoble facility acquired in the prior fiscal year. Adjusted* profit before tax increased by 11.4% to £24.2m and profit before tax was £13.7m (2007: £13.7m). Order book as at 31 March was £122.2m, down 10.9% year on year. The reduction in order book is primarily related to the timing of placement of multi year orders from key electronic tubes customers in the medical sector. As at 30 April the order book amounts to £130.5m (2007: £134.4m).
Sensors and Semiconductors PRODUCT GROUP
Sales of sensors and semiconductors at £128.8m (2007: £104.3m) were 23.5% higher than last year. The growth was entirely driven by the inclusion of a full 12 months of sales from the Grenoble facility (compared with 8 months in the previous year). The order book as at 30 April was £74.3m and overall organic sales and margin improvement is anticipated in 2008/9.
Medical and Science
Sales in the medical and science sector consist of imaging technology for digital dental x-ray and scientific instrumentation as well as detectors used in microscopy.
The OEM market for digital dental x-ray systems has undergone a consolidation phase, which included the Danaher Corporation acquiring a range of system suppliers as well as some system suppliers acquiring imaging companies. The net impact has been a reduction in e2v's market share but the Group remains one of the major suppliers of imaging devices for this market. The core technology is moving from CCD technology, which the group manufactures in wafer fabrication plants, to CMOS technology, which utilises an outsourced business model. e2v is well placed to support both CCD and CMOS technologies and now believe the market has stabilised at current levels.
In scientific instrumentation, e2v has a technology lead in "low light" imaging, utilised in scientific analysis and drug discovery and this continues to deliver sales growth. The introduction of larger devices is strengthening e2v's position in this growing market.
Our x-ray detector business, e2v scientific instruments, supplies a specialised range of cooled and un-cooled detectors and is growing strongly from a relatively small base.
Aerospace and Defence
The largest sub-sector of this market is space imaging where e2v is one of the world's leading suppliers of visible to near infra red imaging technology and has supplied devices that are flying on significant missions for leading space agencies throughout the world. During the past year, e2v sensors have provided the first 3D images of Mercury, been part of the system developed to allow the Jules Verne Automated Transfer Vehicle to dock with the International Space Station and returned pictures of the moon from Chinese and Japanese satellites. Whilst this market is challenging due to customer budget constraints, e2v continues to win significant orders in Europe and elsewhere. An example being the recent contract to supply CCD sensors to the Space Application Centre (SAC), part of the Indian Space Research Organisation (ISRO), for their new earth observation satellites.
e2v also supplies a range of specialist semiconductors, in particular high reliability broadband data converters (ADC/DAC) and microprocessors, used in a wide range of applications including radar, electronic warfare, engine control and flight recorders. This significant capability also enables e2v to provide high reliability test and assembly services and demand for these services is increasing. We anticipate continued sales development over the medium term through the introduction of a range of new products and services.
Within e2v's range of solid state microwave and micro-electronic products the Group has seen significant demand for safety and arming technology. This world leading technology is drawing increasing interest from a range of defence contractors and, in many cases, is replacing electro-mechanical 'in-house' solutions.
Commercial and Industrial
e2v supplies high speed imaging sensors and cameras into the growing industrial inspection market. The sensors utilise both CCD and CMOS technology. We are developing a range of identification imaging products for use within sophisticated bar code reading systems to extend our footprint in this sector.
Specialist semiconductor products include Application Specific Integrated Circuits (ASIC's) that are designed to operate with a range of specific sensor applications such as seismology, pressure monitoring, rain and position sensors for automotive, as well as utility meter reading. ASICs are custom designed for the application and require a long design phase prior to entering production.
Smaller, but still growing areas are marine radar, driven by the continued strong shipping market and fire cameras where the Group has launched an updated and extended product range and strengthened distribution.
Following the acquisition of the MiCS business in 2007, e2v has a market leading technology for automotive air quality applications, and this business is now growing strongly, albeit from a small base after a slower than anticipated start.
ELECTRONIC TUBES
Sales in the electronic tube product Group were £75.8m (2007: £69.6m) up 8.9%
Strong organic growth was driven primarily by the Aerospace and Defence market where sales were up 36.8% year on year.
The order book as at 30 April was £56.3m (2007: £61.9m) impacted by the phasing of multi-year radiotherapy orders at £12.7m (2007: £23.6m). Continued organic sales growth is anticipated in 2008/9.
Medical and Science
e2v's principal customers in this sector are OEM's manufacturing radiotherapy equipment for the treatment of cancer. e2v has longstanding relationships with all the significant OEM's. As well as the on-going demand for new equipment there is a significant spares requirement for the Group's magnetrons. Underlying demand in this market remains strong and following a period of de-stocking by one of our major customers we anticipate revenue growth in 2008/9 and these key strategic partnerships underpin future growth for e2v.
Aerospace and Defence
The heritage of e2v is electronic tubes for radar applications and these products, as well as sub-systems continue to be supplied for military and civil requirements. e2v has also developed electronic tubes for counter measure and other applications. In particular, e2v is currently the sole source for the towed decoy tubes for the Typhoon Eurofighter and has recently supplied defence electronic subsystems to the UK Ministry of Defence and others. In the last month of the year, the Group received a small, but strategically significant, order for the defence sub-systems from the US Department of Defence. This was followed in April by a larger order of £6.3m which, in the medium term, represents a significant step forward in developing our relationship with this important customer.
Overall demand for our products into this sector remains robust and is reflected in the 30 April order book of £33.1m (2007: £28.0m).
Commercial and Industrial
e2v has been the leading supplier for high power tubes for UHF Terrestrial TV broadcasting, particularly in the USA, for many years. Following completion of the digital switchover in the USA this business has reverted to mainly spares and is expected to stabilise at its current level. e2v also supplies satellite communication products into the broadcast market and in March of last financial year, launched a new product, demand for which currently outstrips e2v's ability to supply and we are increasing capacity accordingly.
Cargo screening is a market that is estimated to grow at 10% per annum and e2v is well placed to continue to benefit from this growth by leveraging products (originally designed for use by radiotherapy OEM's) for industrial linear accelerators used in cargo screening systems.
Operational efficiencies
During the year, our business improvement project "Fit for the Future" progressed ahead of schedule, with a range of customer focussed metrics demonstrating positive improvement. In particular, overdue orders in the UK have been significantly reduced during the year. In addition, the first phase of product rationalisation has been completed with minimal disruption. Costs for the programme were lower than anticipated at £2.0m, whilst annualised savings are expected to be ahead of plan at £2.0m per annum from 2008/9. The project will continue through the new financial year, with a particular emphasis on inventory reduction.
On a related note, we continue to apply concerted effort to improve the effectiveness of our supply chain and following the establishment of our Asian/US procurement teams, we are seeking to leverage our buying power throughout the world. Furthermore, our fledgling sub-contract assembly facility in Mexico has obtained ISO 9001 quality approval and is currently manufacturing certain sensor components. We expect to extend the utilisation of this facility over the coming months.
Following the significant downturn in the UK housing market, our site development/relocation plans for our Lincoln business unit have been temporarily put on hold.
Outlook
e2v is well positioned to capitalise on organic growth opportunities across both product Groups, following the integration of the Grenoble business and the restructuring and refocusing of our sales organisation. Our ongoing focus on internal efficiencies further underpins anticipated performance improvement.
We continue to review acquisition opportunities, with a view to strengthening our geographic and market sector positioning.
Overall, we are confident of continued progress through 2008/9.
Keith Attwood
2 June 2008
*Adjusted profit is before amortisation of acquired intangibles, business improvement programme costs, share based payment charges, fair value losses on financial instruments, integration and other non-recurring costs associated with acquisitions including exceptional interest charges. Adjusted earnings is adjusted profit less tax impacts where applicable.
Group Finance directors Review
Introduction
The Group has delivered a strong set of results for the year to 31 March 2008. Despite the challenges of a weakening US$ exchange rate against sterling, adjusted* profit before taxation at £24.2m was up 11.4% on last year and profit before tax flat at £13.7m. The results include a full year in respect of the Grenoble facility (2007 included 8 months). The tax rate was reduced by maximising claims in the UK and France for Research and Development tax credits with the result that adjusted* earnings per share increased by 20% and earnings per share by 18%. The strengthening euro has had an adverse impact on the finance charges and net debt as the majority of the Group's borrowings are denominated in this currency.
Operating Performance
Total sales
Total sales for the year increased by 17.7% to £204.6m (2007: £173.9m). Acquisitions contributed £28.0m of growth and a further £4.6m (2.3%) was organic. Sales were impacted by £1.9m due to the stronger € only partly offsetting the adverse impact of the weaker US$.
Segment results - sensors and semiconductors
Sales in the sensors and semiconductors product Group grew by 23.5% to £128.8m (2007: £104.3m) and reflect a full year of sales from our Grenoble facility (2007 includes sales of £52.7m for an 8 month period). The growth across market sectors was as follows:
|
Growth |
31 March 2008 |
31 March 2007 |
||
|
Medical and Science |
8.4% |
£36.3m |
£33.5m |
|
|
Aerospace and Defence |
23.2% |
£50.9m |
£41.3m |
|
|
Commercial and Industrial |
41.0% |
£41.6m |
£29.5m |
|
|
23.5% |
£128.8m |
£104.3m |
Sales in the medical and science sector increased to £36.3m (2007: £33.5m) up 8.4%. The largest sub-sector is dental imaging where sales were up 6.9% year on year, but on an organic basis were down 23%. This was due to the continued impact of market consolidation which has now stabilised. Sales of Imaging products into the Life Science market increased by 10.0% and sales for x-ray detectors supplied by e2v scientific instruments increased by 15%.
Sales in the aerospace and defence sector increased to £50.9m (2007: £41.3m) .The largest sub-sector of this market is space and defence imaging and sales into this sector were down 4.5% year over year. The £20m GAIA contract for the European Space Agency was largely completed in the year and the level of sales attributable to this contract amounted to £4.8m (2007: £4.7m). Grenoble supplies specialist semiconductors as well as test and assembly services into this sector and on a reported basis, sales are up 46% but on an organic basis were flat. Sales of Microwave devices from the Lincoln facility increased by 25%, all of which was organic growth. This is primarily due to market leading technology in safety and arming units. The order book at the year end for the aerospace and defence sector amounted to £34.6m, of which £20.1m is deliverable within 12 months. This compares to the prior year when the order book was £41.3m, with £29.1m due in the current fiscal year 2008. The reduction is primarily in space imaging and microwave technology.
Sales into the commercial and industrial market sector showed the largest growth, up 41% in the year. Sales of imaging sensors and industrial line scan cameras into the machine vision market increased by 91%, of which 26% was organic growth. Sales of ASICs increased by 45% but organically, sales declined by 20%. The acquisition of MiCS in May 2007 increased sales by £1.5m but elsewhere sales in this sector were flat.
Segment profit of £13.2m at 10.2% of revenue was down by £0.6m due to the lack of organic growth from a relatively fixed manufacturing cost base, the expected loss from the MiCS business of £0.7m, adverse currency impacts and increased costs to support the enlarged business. This segment also requires significantly higher levels of research and development expenditure and selling costs to support the on-going business as compared to the electronic tubes segment. However there exists a basis for growth.
Segment results - electronic tubes
Sales in the tubes product group grew by 8.8% to £75.8m (2007: £69.6m). The growth across market sectors was as follows:
|
Growth |
31 March 2008 |
31 March 2007 |
||
|
Medical and Science |
1.2% |
£25.1m |
£24.8m |
|
|
Aerospace and Defence |
36.9% |
£30.4m |
£22.2m |
|
|
Commercial and Industrial |
-10.2% |
£20.3m |
£22.6m |
|
|
8.9% |
£75.8m |
£69.6m |
Sales in the medical and science market sector showed modest growth due to the reduced value of sales into the radiotherapy market. Most of the sales into this market are denominated in US$ and hence the weakened US$ exchange rate against sterling has impacted reported sales. Sales in the aerospace and defence market sector showed significant growth due to additional contracts to supply electronic sub-systems into the defence market. Sales into the commercial and industrial market sector showed a decline of 10.2% driven by the anticipated decline in the requirement for Inductive Output Tubes in the US broadcast market, following the introduction of new digital transmitters. Sales into the marine radar business grew by 13.3% and sales into general industrial applications remained flat.
Segment profit of £17.5m at 23.1% of revenue was up by £5.3m principally due to the organic growth in higher margin product lines, contract over-runs in the previous year reducing profits together with constant levels of research and development expenditure and allocated selling and administration costs.
adjusted* profit before taxation
The adjusted* profit before taxation more accurately reflects the underlying performance of the business and is calculated as follows:
|
Year ended 31 March 2008 |
Year ended 31 March 2007 |
|
|
£000 |
£000 |
|
|
Profit before taxation |
13,747 |
13,716 |
|
Amortisation of acquired intangible assets |
7,310 |
6,047 |
|
Costs associated with acquisition |
- |
300 |
|
Integration costs of acquisition |
- |
755 |
|
Business improvement programme costs |
1,996 |
- |
|
Share based payment charges |
821 |
654 |
|
Fair value losses on financial instruments |
357 |
- |
|
Abnormal write off of debt issue costs |
- |
276 |
|
Adjusted* profit before taxation |
24,231 |
21,748 |
Adjusted* profit before taxation increased by 11.4% to £24.2m (2007: £21.7m).
Adjusted items
The increase in amortisation charges in the Group income statement for the current year reflects a full year of amortisation of intangibles arising from the acquisition of the Grenoble facility. In addition, it includes amortisation of intangibles arising from the acquisition of MiCS Microchemical Systems SA during the year.
The Group continues its drive to seek efficiencies and has invested significantly in its business improvement programme in the year incurring costs of £2.0m (2007: £nil)
Share based payment charges increased to £0.8m (2007: £0.7m). Charges are expected to be more consistent from one year to the next now a full programme of share options has been established.
A number of the US$ forward exchange contracts do no qualify for hedge accounting and a mark to market adjustment was required. This amounted to a loss of £0.4m and is described as fair value losses on financial instruments.
Gross profit
Gross profit increased to £72.4m and represented 35.4% of sales (2007: 34.0%). The 1.4% increase in margins was primarily due to improved productivity and product mix in electronic tubes offsetting lower margins in the sensors and semiconductors product range.
Expenses
Research and development costs increased by £3.1m in the year and amounted to 6.8% of sales (2007: 6.3%). This reflects both a full year of the Grenoble facility as well as a general increase demonstrating the Groups commitment to invest into new technologies.
The total selling, distribution and general administrative expenses (excluding itemised expenses) for the year amounted to £28.5m (2007: £22.8m) representing 13.9% (2007: 13.1%) of sales revenue. The increase reflects investment in an improved selling organisation as well as several executive level appointments throughout the business.
Finance charges
Higher interest charges this year primarily reflect a full year of the increased banking facilities arranged in July 2006, as follows:
|
Year ended 31 March 2008 |
Year ended 31 March 2007 |
|
|
£000 |
£000 |
|
|
Interest paid on bank borrowings |
5,802 |
3,741 |
|
Amortisation of debt issue costs - ongoing |
355 |
197 |
|
Fair value adjustments to financial instruments |
26 |
- |
|
Other interest |
- |
3 |
|
6,183 |
3,941 |
|
|
Abnormal write off of debt issue costs |
- |
276 |
|
Bank interest receivable |
(501) |
(382) |
|
Net finance costs |
5,682 |
3,835 |
The interest paid on bank borrowings includes euro denominated interest on both the Group's term loan and on certain revolving credit facilities. The foreign exchange impact in these interest charges is not hedged. If the 2007 exchange rates had been applied in the current year, interest on bank borrowings would have been lower by £0.2m.
The Group has an interest rate hedge covering 54% of borrowings at 31 March which secures LIBOR rates to a maximum of 5%.
Taxation
The effective tax rate on profits for the year ended 31 March 2008 (excluding adjustments to the tax charge in respect of prior years) amounts to 21.6% compared with 29.5% in the previous year. The tax charge in the current year has benefited from an increased deduction in respect of tax credits for research and development in both the UK and France that not only relate to the current year but also prior years. This has more than offset the impact of higher overseas tax rates on the increased levels of profits arising overseas. This has resulted in an actual tax rate for the year of 14.2% (2007: 29.5%).
Whilst the effective tax rate should reduce following the reduction in UK Corporate tax rates to 28%, from April 2008, the favourable impact of R&D tax credits could diminish.
Currency
The Group's primary exposure to foreign currency continues to be the US$ which accounts for 31% (2007: 33%) of the Group's sales revenue. In the year to 31 March US$ were sold at an average rate of $1.99 = £1 (2007: $1.85 = £1). The net impact on profits was a reduction of £2.5m. Sales revenue denominated in the euro accounts for 31% (2007: 34%) of the total but the majority of this exposure is offset by expenditure. However 85% of the Groups borrowings are denominated in the euro and this lead to increased net debt of £12.9m (16%).
In the year ended 31 March exchange rates applied were:
|
Average |
Year End |
|||
|
2008 |
2007 |
2008 |
2007 |
|
|
US dollar |
2.01 |
1.89 |
1.99 |
1.96 |
|
Euro |
1.43 |
1.47 |
1.26 |
1.47 |
earnings and Earnings Per Share
Profit after tax of £11.8m (2007: £9.7m) increased by 21.6% and equated to 19.36p (2007: 16.46p) per share. Adjusted* earnings of £18.9m (2007: £15.2m) increased by 24.3% over the prior year and equated to earnings per share of 31.05p (2007: 25.82p). The undiluted weighted average number of shares in issue during the year increased by 3.0%. This increase reflects both the full year impact of a placing of 5,511,727 shares representing a 10% increase in 31 July 2006, together with additional share issues arising on the exercise of share options.
DIVIDENDS
The final dividend for the year of 5.25p (2007: 4.75p) represents a 10.5% year on year increase and is payable on 1 August 2008 to shareholders registered at the close of business on 4 July 2008. The full year dividend of 7.70p (2007: 6.95p) is a year on year increase of 10.8%.
CAPITAL INVESTMENT
Investment in capital equipment (including software) totalled £12.3m (2007: £10.9m) and represented 6.0% of sales (2007: 6.3%). The major item of expenditure in the year was the completion of the plc head office and new reception at the Chelmsford site of £1.8m.
acquisition of MiCS micrOchemical systems sa
On 14 May 2007 the Group completed the acquisition of MiCS Microchemical Systems SA, a company based in Switzerland specialising in the design and manufacture of specialist electronic components and sub-systems, for a total cash consideration of £5.1m. The acquisition was financed by bank borrowings.
Cash Flow and net Debt
The net cash inflow from operating activities of £26.1m was £15.5m higher than that achieved in the year ended 31 March 2007. This increase reflects the fact that the prior year was lower primarily due to the need to finance trade debtors following the Grenoble acquisition.
Cash expended on tangible assets and software amounted to £12.6m in the year (2007: £10.6m), of which £3.1m, (2007: £1.9m) relates to capital expenditure at our Grenoble facility, reflecting a full year of investment.
Taxation payments continue to exceed the tax charge in the year as the Group was required to pay additional payments on account in the year to the French tax authorities.
Working capital continues to be closely monitored and whilst days inventory improved by 11% and debtor days by 7% working capital requirements overall increased by £9.7m, principally as a result of phasing.
Net debt at 31 March 2008 amounted to £93.2m (2007: £78.7m). Of the total increase of £14.5m, £12.6m is attributable to a revaluation of bank borrowings denominated in euros and a further £5.1m is due to the cost of the MiCS acquisition.
treasury policy
The Group operates a central treasury function with clearly defined policies approved by the Board. The Group's treasury policy is designed to manage currency and interest rate risk. The central treasury function monitors group-wide exposures to currency and exchange rate risk and hedges exposure by means of forward contracts and interest rate swaps. It is not the Group's policy to undertake speculative transactions.
BORROWING FACILITIES
The Group's multi currency borrowing facilities do not expire until July 2011 and currently consist of a term loan of €69.6m and general corporate purposes facilities of €35m and £76.1m. At 31 March 2008 a total of £111.2m had been drawn on these facilities, consisting of £17.0m and €104.6m. The term loan is payable in six monthly instalments until 31 March 2011, of which €9.2m of the term loan is due for repayment during the year ended 31 March 2009. The balance is repayable on 11 July 2011. The general corporate purposes facilities are available to the Group in full until 11 July 2011. Interest is payable at between 60 and 125 basis points over LIBOR/EURIBOR dependant upon the levels of borrowings to EBITDA. An interest rate hedging contract is in place for 100% of the term loan drawn at 31 March 2008.
Mike Hannant
2 June 2008
*Adjusted profit is before amortisation of acquired intangibles, business improvement programme costs, share based payment charges, fair value losses on financial instruments, integration and other non-recurring costs associated with acquisitions including exceptional interest charges. Adjusted earnings is adjusted profit less tax impacts where applicable.
|
GROUP INCOME STATEMENT |
Year ended 31 March 2008 |
Year ended 31 March 2007 |
|
|
Notes |
£000 |
£000 |
|
|
Revenue |
2 |
204,607 |
173,925 |
|
Cost of sales |
(132,213) |
(114,870) |
|
|
Gross profit |
72,394 |
59,055 |
|
|
Research and development costs |
(13,988) |
(10,919) |
|
|
Selling and distribution costs |
(13,957) |
(11,334) |
|
|
Amortisation of acquired intangible assets |
(7,310) |
(6,047) |
|
|
Costs associated with acquisition |
- |
(300) |
|
|
Integration costs of acquisition |
- |
(755) |
|
|
Business improvement programme costs |
(1,996) |
- |
|
|
Share based payment charges |
(821) |
(654) |
|
|
Fair value losses on financial instruments |
(357) |
- |
|
|
Other administrative costs |
(14,536) |
(11,495) |
|
|
Administrative expenses |
(25,020) |
(19,251) |
|
|
Profit from continuing operations before tax and net finance costs |
19,429 |
17,551 |
|
|
Finance costs |
(6,183) |
(4,217) |
|
|
Finance revenue |
501 |
382 |
|
|
Profit before tax |
13,747 |
13,716 |
|
|
Income tax expense |
3 |
(1,948) |
(4,048) |
|
Profit for the year attributable to equity holders of the parent |
11,799 |
9,668 |
|
|
Earnings per share |
|||
|
- basic |
4 |
19.36p |
16.46p |
|
- diluted |
4 |
19.20p |
16.21p |
|
Adjusted earnings per share |
|||
|
- basic |
4 |
31.05p |
25.82p |
|
- diluted |
4 |
30.80p |
25.42p |
GROUP STATEMENT OF RECOGNISED INCOME AND EXPENSE
|
for the year ended 31 March 2008 |
Year ended 31 March 2008 |
Year ended 31 March 2007 |
|
|
£000 |
£000 |
||
|
Gains on cash flow hedges taken directly to equity |
(79) |
349 |
|
|
Exchange differences on retranslation of foreign operations |
1,296 |
(603) |
|
|
Actuarial gain on post employment employee benefits |
210 |
353 |
|
|
Tax on items taken directly to or transferred from equity |
3 |
(697) |
867 |
|
Net income recognised directly in equity |
730 |
966 |
|
|
Profit for the year |
11,799 |
9,668 |
|
|
Total recognised income and expense for the year |
7 |
12,529 |
10,634 |
|
GROUP BALANCE SHEET |
|||
|
as at 31 March 2008 |
|||
|
31 March 2008 |
31 March 2007 |
||
|
Notes |
£000 |
£000 |
|
|
ASSETS |
|||
|
Non-current assets |
|||
|
Property, plant and equipment |
40,191 |
35,192 |
|
|
Intangible assets |
93,037 |
84,275 |
|
|
Deferred income tax asset |
2,726 |
3,964 |
|
|
135,954 |
123,431 |
||
|
Current assets |
|||
|
Inventories |
43,958 |
40,384 |
|
|
Trade and other receivables |
54,547 |
45,344 |
|
|
Other financial assets |
188 |
267 |
|
|
Income tax recoverable |
2,791 |
1,705 |
|
|
Cash |
5,806 |
8,496 |
|
|
107,290 |
96,196 |
||
|
TOTAL ASSETS |
243,244 |
219,627 |
|
|
LIABILITIES |
|||
|
Current liabilities |
|||
|
Trade and other payables |
(47,582) |
(46,620) |
|
|
Other financial liabilities |
(7,442) |
(2,398) |
|
|
Income tax payable |
(2,322) |
(1,231) |
|
|
Provisions |
(4,804) |
(4,557) |
|
|
(62,150) |
(54,806) |
||
|
Net current assets |
45,140 |
41,390 |
|
|
Non-current liabilities |
|||
|
Other financial liabilities |
(92,073) |
(84,801) |
|
|
Provisions |
(350) |
(766) |
|
|
Retirement benefit obligations |
(3,096) |
(2,691) |
|
|
Deferred income tax liabilities |
(11,125) |
(12,335) |
|
|
(106,644) |
(100,593) |
||
|
NET ASSETS |
74,450 |
64,228 |
|
|
SHAREHOLDERS' EQUITY |
|||
|
Ordinary share capital |
7 |
3,111 |
3,073 |
|
Share premium |
7 |
41,116 |
39,902 |
|
Capital redemption reserve |
7 |
274 |
274 |
|
Investment in own shares held by employee benefit trust |
7 |
(6) |
(9) |
|
Hedge reserve |
7 |
58 |
111 |
|
Foreign currency translation reserve |
7 |
983 |
(50) |
|
Retained earnings |
7 |
28,914 |
20,927 |
|
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY |
74,450 |
64,228 |
|
GROUP CASH FLOW STATEMENT |
|||
|
For the year ending 31 March 2008 |
|||
|
Year ended 31 March 2008 |
Year ended 31 March 2007 |
||
|
Notes |
£000 |
£000 |
|
|
Cash flows from operating activities |
|||
|
Profit from continuing operations before tax and net finance costs |
19,429 |
17,551 |
|
|
Adjustments to reconcile to net cash inflows from operating activities |
|||
|
Depreciation of property, plant and equipment |
8,392 |
7,311 |
|
|
Amortisation of intangible assets |
10,749 |
8,724 |
|
|
Fair value losses on financial instruments |
357 |
- |
|
|
Share based payment charges |
821 |
654 |
|
|
Increase in inventories |
(753) |
(4,349) |
|
|
Increase in trade and other receivables |
(6,474) |
(18,327) |
|
|
(Decrease)/increase in trade and other payables |
(2,474) |
7,941 |
|
|
(Decrease)/increase in provisions |
(378) |
34 |
|
|
Cash generated from operations |
29,669 |
19,539 |
|
|
Income taxes paid |
(3,582) |
(8,930) |
|
|
Net cash flows from operating activities |
26,087 |
10,609 |
|
|
Cash flows from investing activities |
|||
|
Proceeds from sale of property, plant and equipment |
137 |
21 |
|
|
Interest received |
501 |
382 |
|
|
Purchase of property, plant and equipment |
(10,910) |
(9,169) |
|
|
Purchase of software |
(1,670) |
(1,493) |
|
|
Expenditure on patents, trade marks and technology |
(117) |
(24) |
|
|
Expenditure on product development |
(2,036) |
(1,905) |
|
|
Acquisition of subsidiary, net of cash acquired |
6 |
(5,037) |
(64,553) |
|
Net cash flows used in investing activities |
(19,132) |
(76,741) |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
(5,858) |
(3,653) |
|
|
Proceeds from issue of shares, net of expenses |
1,252 |
12,870 |
|
|
Dividends paid to equity shareholders of the parent |
(4,380) |
(3,667) |
|
|
Payment of finance lease obligations |
(16) |
(28) |
|
|
Proceeds from borrowings |
3,500 |
92,595 |
|
|
Transaction costs of new bank loans raised |
- |
(1,735) |
|
|
Repayment of borrowings |
(4,576) |
(29,709) |
|
|
Net cash flows generated (used in)/from financing activities |
(10,078) |
66,673 |
|
|
Net (decrease)/increase in cash and cash equivalents |
(3,123) |
541 |
|
|
Net foreign exchange difference |
433 |
(132) |
|
|
Cash and cash equivalents at 1 April |
8,496 |
8,087 |
|
|
Cash and cash equivalents at 31 March |
5,806 |
8,496 |
|
Notes to the final results
1. Basis of preparation
e2v technologies plc prepares its financial statements on the basis of International Financial Reporting Standards (IFRS) as adopted for use by the European Union (EU). The financial information presented herein has been prepared in accordance with the accounting policies used in preparing the financial statements for the year ended 31 March 2008, which do not differ from those used for the financial statements for the year ended 31 March 2007.
The financial information contained in this document does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the year ended 31 March 2008 has been extracted from the financial statements of e2v technologies plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion on the Group's financial statements for the year ended 31 March 2007, which have been filed with the Registrar of Companies. The preliminary announcement covers the period 1 April 2007 to 31 March 2008 and was approved by the Board on 2 June 2008.
The report and accounts will be sent to shareholders in due course. Further copies will be available from the Company's registered office.
2. Segment information
The Group's primary reporting format is business segments and its secondary format is geographical segments. The operating businesses are organised and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.
The sensors and semiconductors segment products include charged coupled imaging devices (CCDs), CMOS sensors and cameras, solid-state microwave components, thermal imaging cameras, Mixed-signal application specific integrated circuits (ASICS), Broadband data converters, gas sensors and x-ray detectors.
The electronic tubes segment products include magnetrons, thyratrons, klystrons, inductive output tubes (IOTs), modulators, travelling wave tubes (TWTs) and satcom amplifiers.
The Group's geographical segments are determined by the location of the Group's assets and operations.
Business segments
The following tables present revenue and profit information and certain asset and liability and other information regarding the Group's business segments for the years ended 31 March 2008 and 2007.
|
Year ended 31 March 2008 |
Sensors and semiconductors |
Electronic tubes |
Total operations |
|
|
£000 |
£000 |
£000 |
||
|
Revenue |
||||
|
Medical and Science |
36,320 |
25,114 |
61,434 |
|
|
Aerospace and Defence |
50,888 |
30,423 |
81,311 |
|
|
Commercial and Industrial |
41,623 |
20,239 |
61,862 |
|
|
Total segment revenue |
128,831 |
75,776 |
204,607 |
|
|
Result |
||||
|
Segment result before amortisation |
13,153 |
17,521 |
30,674 |
|
|
Amortisation of intangibles arising on acquisition |
(7,310) |
- |
(7,310) |
|
|
Segment result |
5,843 |
17,521 |
23,364 |
|
|
Exchange differences |
798 |
|||
|
Business improvement programme costs |
(1,996) |
|||
|
Share based payment charges |
(821) |
|||
|
Fair value losses on financial instruments |
(357) |
|||
|
Other unallocated expenses |
(1,559) |
|||
|
Total unallocated expenses |
(3,935) |
|||
|
Profit from continuing operations before tax and net finance costs |
19,429 |
|||
|
Net finance costs |
(5,682) |
|||
|
Profit before income tax |
13,747 |
|||
|
Income tax expense |
(1,948) |
|||
|
Profit for the year |
11,799 |
|||
|
Sensors and semiconductors |
Electronic tubes |
Central unallocated items |
Total operations |
|
|
£000 |
£000 |
£000 |
£000 |
|
|
Assets and liabilities |
||||
|
Intangible assets |
76,828 |
1,507 |
14,702 |
93,037 |
|
Property, plant and equipment |
24,691 |
7,384 |
8,116 |
40,191 |
|
Other assets |
26,295 |
17,987 |
65,734 |
110,016 |
|
Total assets |
127,814 |
26,878 |
88,552 |
243,244 |
|
Total liabilities |
(7,370) |
(4,559) |
(156,865) |
(168,794) |
|
Net assets |
120,444 |
22,319 |
(68,313) |
74,450 |
NOTES TO THE FINAL RESULTS
For the year ending 31 March 2008
|
Year ended 31 March 2007 |
Sensors and semiconductors |
Electronic tubes |
Total operations |
|
|
£000 |
£000 |
£000 |
||
|
Revenue |
||||
|
Medical and Science |
33,466 |
24,788 |
58,254 |
|
|
Aerospace and Defence |
41,309 |
22,235 |
63,544 |
|
|
Commercial and Industrial |
29,511 |
22,616 |
52,127 |
|
|
Total segment revenue |
104,286 |
69,639 |
173,925 |
|
|
Result |
||||
|
Segment result before amortisation |
13,763 |
12,214 |
25,977 |
|
|
Amortisation of intangibles arising on acquisition |
(6,037) |
- |
(6,037) |
|
|
Segment result |
7,726 |
12,214 |
19,940 |
|
|
Exchange differences |
1,195 |
|||
|
Acquisition and integration costs |
(1,055) |
|||
|
Share based payment charges |
(654) |
|||
|
Other unallocated expenses |
(1,875) |
|||
|
Total unallocated expenses |
(2,389) |
|||
|
Profit from continuing operations before tax and net finance costs |
17,551 |
|||
|
Net finance costs |
(3,835) |
|||
|
Profit before income tax |
13,716 |
|||
|
Income tax expense |
(4,048) |
|||
|
Profit for the year |
9,668 |
|||
|
Sensors and semiconductors |
Electronic tubes |
Central unallocated items |
Total operations |
|
|
£000 |
£000 |
£000 |
£000 |
|
|
Assets and liabilities |
||||
|
Intangible assets |
68,394 |
1,146 |
14,735 |
84,275 |
|
Property, plant and equipment |
22,066 |
6,432 |
6,694 |
35,192 |
|
Other assets |
27,487 |
12,884 |
59,789 |
100,160 |
|
Total assets |
117,947 |
20,462 |
81,218 |
219,627 |
|
Total liabilities |
(8,051) |
(2,781) |
(144,567) |
(155,399) |
|
Net assets |
109,896 |
17,681 |
(63,349) |
64,228 |
Geographical segments
The following table presents revenue, capital expenditure and certain asset information regarding the Group's geographical segments for the years ended 31 March 2008 and 2007.
|
Year ended |
Year ended |
|||
|
31 March 2008 |
31 March 2007 |
|||
|
£000 |
£000 |
|||
|
Group turnover |
||||
|
Revenue by destination |
||||
|
United Kingdom |
50,275 |
37,547 |
||
|
North America |
56,194 |
51,314 |
||
|
Europe |
76,544 |
66,871 |
||
|
Asia Pacific |
17,868 |
14,998 |
||
|
Rest of the world |
3,726 |
3,195 |
||
|
204,607 |
173,925 |
|||
|
Segment assets |
||||
|
United Kingdom |
102,191 |
91,760 |
||
|
North America |
13,570 |
12,204 |
||
|
Europe |
127,295 |
115,584 |
||
|
Asia Pacific |
188 |
79 |
||
|
243,244 |
219,627 |
|||
|
Capital expenditure including product development |
||||
|
United Kingdom |
9,575 |
10,711 |
||
|
North America |
201 |
61 |
||
|
Europe |
4,615 |
2,087 |
||
|
Asia Pacific |
75 |
- |
||
|
14,466 |
12,859 |
|||
3. Income tax
Major components of income tax expense for the years ended 31 March 2008 and 2007 are:
|
Year ended |
Year ended |
|
|
31 March 2008 |
31 March 2007 |
|
|
£000 |
£000 |
|
|
Consolidated income statement |
||
|
Current income tax |
||
|
Current income tax charge - UK corporation tax |
4,656 |
2,252 |
|
Current income tax charge - foreign tax |
385 |
3,587 |
|
Current income tax charge |
5,041 |
5,839 |
|
Adjustments in respect of current income tax of previous years |
(794) |
107 |
|
Total current income tax |
4,247 |
5,946 |
|
Deferred income tax |
||
|
Relating to origination and reversal of temporary differences |
(2,074) |
(1,799) |
|
Adjustments in respect of deferred income tax of previous years |
(225) |
(99) |
|
Total deferred income tax |
(2,299) |
(1,898) |
|
Income tax expense reported in the Group income statement |
1,948 |
4,048 |
|
Tax relating to items charged or credited to equity |
||
|
Net gain on revaluation of cash flow hedges |
(26) |
105 |
|
Charge/(credit) in respect of share based payments |
729 |
(639) |
|
Net tax on retranslation of foreign operations |
(6) |
(333) |
|
Tax charge/(credit) in the statement of recognised income and expense |
697 |
(867) |
A reconciliation of income tax expense applicable to accounting profit before income tax at the statutory income tax rate to income tax expense at the Group's effective income tax rate for the years ended 31 March 2008 and 2007 is as follows:
|
Year ended |
Year ended |
|
|
31 March 2008 |
31 March 2007 |
|
|
£000 |
£000 |
|
|
Accounting profit before income tax |
13,747 |
13,716 |
|
At UK statutory income tax rate of 30% (2007: 30%) |
4,124 |
4,115 |
|
Permanent differences |
756 |
519 |
|
Tax relief on research and development - current year |
(2,047) |
(944) |
|
Tax relief on research and development - prior year |
(989) |
- |
|
Impact of higher taxes on overseas earnings |
280 |
350 |
|
Impact of change in UK income tax rate |
(146) |
- |
|
Adjustments in respect of current income tax of previous years |
195 |
107 |
|
Adjustments in respect of deferred income tax of previous years |
(225) |
(99) |
|
Total tax expense reported in the income statement |
1,948 |
4,048 |
4. Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year adjusted for the effects of dilutive options.
The following reflects the income and share data used in the basic and diluted earnings per share computations:
|
Year ended |
Year ended |
|
|
31 March 2008 |
31 March 2007 |
|
|
£000 |
£000 |
|
|
Profit attributable to ordinary shareholders |
11,799 |
9,668 |
Adjusted earnings per share is arrived at using the following earnings:
|
Year ended |
Year ended |
|
|
31 March 2008 |
31 March 2007 |
|
|
£000 |
£000 |
|
|
Profit for the year |
11,799 |
9,668 |
|
Amortisation of acquired intangible assets |
7,310 |
6,047 |
|
Costs associated with acquisition |
- |
300 |
|
Integration costs of acquisition |
- |
755 |
|
Business improvement programme costs |
1,996 |
- |
|
Share based payment charges |
821 |
654 |
|
Fair value losses on financial instruments |
357 |
- |
|
Abnormal write off of debt issue costs |
- |
276 |
|
Tax impact of the above |
(3,358) |
(2,535) |
|
18,925 |
15,165 |
The adjusted earnings per share is considered to more appropriately reflect the underlying performance of the business since the costs highlighted above are expected to be either non-recurring or not comparable between periods.
|
Year ended |
Year ended |
|
|
Weighted average number of ordinary shares |
31 March 2008 |
31 March 2007 |
|
No. 000 |
No. 000 |
|
|
For basic earnings per share |
60,951 |
58,730 |
|
Effect of dilution: |
||
|
Share options |
501 |
918 |
|
For diluted earnings per share |
61,452 |
59,648 |
5. Dividends paid and proposed
|
Year ended |
Year ended |
|
|
31 March 2008 |
31 March 2007 |
|
|
£000 |
£000 |
|
|
Declared and paid during the year: |
||
|
Equity dividends on ordinary shares: |
||
|
Adjustment for prior year dividend payments |
- |
(6) |
|
Final dividend for 2007: 4.75p (2006: 4.25p) |
2,878 |
2,340 |
|
First dividend for 2008: 2.45p (2007: 2.20p) |
1,502 |
1,333 |
|
4,380 |
3,667 |
|
|
Proposed for approval at AGM (not recognised as a liability asat 31 March) |
||
|
Equity dividends on ordinary shares: |
||
|
Final dividend for 2008: 5.25p (2007: 4.75p) |
3,234 |
2,878 |
The number of shares owned by the employee benefit trust is 722,239 (2007: 884,239). The Employee Benefit Trust has waived its right to receive dividends.
The final dividend is payable on 1 August 2008 to shareholders registered at the close of business on 4 July 2008 and is based on the number of shares in issue, excluding those held by the Employee Benefit Trust, at the date the financial statements are approved and authorised for issue. The final dividend may differ due to increases or decreases in the number of shares in issue between the date of approval of the financial statements and the record date for the final dividend.
6. Business combinations
Acquisition of MICS
On 14 May 2007, e2v technologies plc acquired 100% of the voting shares of MiCS, an unlisted company based in Switzerland, specialising in the design and manufacture of specialised electronic components and sub-systems.
The fair value of the identifiable assets and liabilities of MiCS as at the date of acquisition was:
|
Fair value recognised on acquisition |
Book value |
|
|
£000 |
£000 |
|
|
Property, plant and equipment |
607 |
607 |
|
Intangible assets |
2,073 |
453 |
|
Deferred income tax asset |
266 |
- |
|
Inventories |
225 |
225 |
|
Trade debtors |
85 |
85 |
|
Other debtors |
166 |
166 |
|
Cash and cash equivalents |
103 |
103 |
|
3,525 |
1,639 |
|
|
Trade payables |
(342) |
(342) |
|
Other creditors |
(603) |
(603) |
|
Financial liabilities |
(7) |
(7) |
|
Deferred income tax liability |
(345) |
- |
|
(1,297) |
(952) |
|
|
Fair value of net assets |
2,228 |
687 |
|
Goodwill arising on acquisition |
2,912 |
|
|
Total consideration |
5,140 |
|
|
Consideration: |
£000 |
|
|
Cash paid |
5,008 |
|
|
Costs associated with the acquisition |
132 |
|
|
Total consideration |
5,140 |
|
|
The cash outflow on acquisition is as follows: |
£000 |
|
|
Net cash acquired with the subsidiary |
103 |
|
|
Cash paid |
(5,140) |
|
|
Net cash outflow |
(5,037) |
Included in the £2.9m of goodwill recognised above are certain intangible assets that cannot be individually separated and reliably measured from the acquiree due to their nature. These items include the expected value of synergies and an assembled workforce.
From the date of acquisition, MiCS has contributed £0.7m loss to the profit before tax and net finance costs of the Group. Had the acquisition occurred on the first day of the year, the consolidated profit from continuing operations before tax and net finance costs of the Group would have been £19,129,000 and the revenue from continuing operations would have been £204,907,000.
7. Reconciliation of movements in equity
|
Issued capital |
Share premium |
Other reserves |
Hedge reserve |
Foreign currency translation reserve |
Retained earnings |
Total equity |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
At 1 April 2006 |
2,796 |
27,309 |
265 |
(134) |
221 |
13,280 |
43,737 |
|
Total recognised income/(expense) for the year |
- |
- |
- |
245 |
(271) |
10,660 |
10,634 |
|
Share based payment charge |
- |
- |
- |
- |
- |
654 |
654 |
|
Issue of shares |
277 |
13,007 |
- |
- |
- |
- |
13,284 |
|
Less: costs on issue of shares |
- |
(414) |
- |
- |
- |
- |
(414) |
|
Equity dividends |
- |
- |
- |
- |
- |
(3,667) |
(3,667) |
|
At 31 March 2007 |
3,073 |
39,902 |
265 |
111 |
(50) |
20,927 |
64,228 |
|
Total recognised (expense)/income for the year |
- |
- |
- |
(53) |
1,033 |
11,549 |
12,529 |
|
Share based payment charge |
- |
- |
- |
- |
- |
821 |
821 |
|
Issue of shares |
38 |
1,214 |
- |
- |
- |
- |
1,252 |
|
Issue of share by EBT on exercise of options |
- |
- |
3 |
- |
- |
(3) |
- |
|
Equity dividends |
- |
- |
- |
- |
- |
(4,380) |
(4,380) |
|
At 31 March 2008 |
3,111 |
41,116 |
268 |
58 |
983 |
28,914 |
74,450 |
FINANCIAL RECORD
|
IFRS |
IFRS |
IFRS |
IFRS |
UK GAAP |
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
Revenue |
|||||
|
Sensors |
128,831 |
104,286 |
50,158 |
48,100 |
44,089 |
|
Electronic tubes |
75,776 |
69,639 |
62,118 |
52,447 |
53,477 |
|
Total revenue |
204,607 |
173,925 |
112,276 |
100,547 |
97,566 |
|
Adjusted profit before tax and net finance costs* |
29,913 |
25,307 |
15,403 |
12,614 |
11,525 |
|
Amortisation of intangible assets arising on acquisitions |
(7,310) |
(6,047) |
(369) |
(10) |
(1,084) |
|
Business improvement programme costs |
(1,996) |
- |
- |
- |
- |
|
Fair value losses on financial instruments |
(357) |
||||
|
Acquisition costs |
- |
(300) |
- |
- |
- |
|
Integration costs |
- |
(755) |
- |
- |
- |
|
Voluntary severance payments |
- |
- |
(819) |
(61) |
- |
|
Share based payment charges |
(821) |
(654) |
(450) |
(142) |
- |
|
Initial public offering costs |
- |
- |
- |
(1,901) |
- |
|
Restructuring costs |
- |
- |
- |
- |
(124) |
|
Environmental costs |
- |
- |
- |
- |
(402) |
|
Costs associated with the MBO |
- |
- |
- |
- |
(60) |
|
Profit before tax and net finance costs |
19,429 |
17,551 |
13,765 |
10,500 |
9,855 |
|
Net finance charges |
(5,682) |
(3,835) |
(1,849) |
(4,941) |
(5,212) |
|
Profit before tax |
13,747 |
13,716 |
11,916 |
5,559 |
4,643 |
|
Income tax expense |
(1,948) |
(4,048) |
(3,768) |
(2,167) |
(1,362) |
|
Profit for the year attributable to equity holders of the parent |
11,799 |
9,668 |
8,148 |
3,392 |
3,281 |
|
Basic earnings per share |
19.36p |
16.46p |
14.81p |
6.93p |
9.19p |
|
Adjusted* basic earnings per share |
31.05p |
25.82p |
16.89p |
13.72p |
10.33p |
|
Interim dividend paid |
2.45p |
2.20p |
2.00p |
0.63p |
Nil |
|
Final dividend proposed |
5.25p |
4.75p |
4.25p |
3.90p |
Nil |
|
Cash generated from operations |
29,669 |
19,539 |
26,469 |
11,789 |
20,212 |
|
Net debt |
93,198 |
78,657 |
17.757 |
21,782 |
44,307 |
|
Average employee numbers |
1,832 |
1,621 |
1,292 |
1,296 |
1,292 |
*Adjusted profit is before amortisation of acquired intangibles, business improvement programme costs, share based payment charges, fair value losses on financial instruments, integration and other non-recurring costs associated with acquisitions including exceptional interest charges. Adjusted earnings is adjusted profit less tax impacts where applicable
Related Shares:
E2V.L