e2v secures improved banking terms
e2v technologies, a specialist provider of technology solutions for high performance systems, has negotiated major new banking facilities.
The Essex company’s committed multicurrency revolving facilities are equivalent to £80m and are available for 4 years from 27 July 2011.
Based on the group's current net borrowings of £27.5m at June 30, the margin payable would be c140bps – almost half the level in the current facility negotiated in autumn 2009. The participating banks are Barclays, HSBC, Lloyds TSB and Santander.
e2v designs, develops and manufactures inspirational hi-tech engineering solutions for global systems companies with applications in medical & science, aerospace & defence and commercial & industrial markets.
e2v says trading for the current year is in line with management’s expectations and significantly ahead of the comparable period in the previous year.
In industrial processing, e2v has developed a novel application of microwave and high power RF to the processing of certain bulk materials, delivering transformational economics in both energy consumption and material yield. An RF generator to support a mining application has been delivered for an order received in the period.
Compared to the prior year, strong OEM demand continues in radiotherapy, whilst, as anticipated, European demand for electronic countermeasures continues to be lower.
The machine vision sector continues to experience steady demand for industrial process control applications. Growth in space imaging reflects the progress being made on key programmes, with scientific imaging also showing growth from end user demand. The remaining product lines in the division continue to show good underlying growth.
e2v is also doing well with SLiM™ – its new approach to obsolescence management for its aerospace and defence customers. It provides a longer term approach for managing critical components in aerospace and defence systems, and offers the potential for lower cost and reduced risk over their lifetime.
The SLiM™ programme continues to benefit from demand for the 68k-series microprocessors with improving demand for test and assembly services in Europe and the US compared to the prior year.
The order book at June 30 was £152m (£4m down year-on-year) and the order book for delivery in the coming 12 months was £122m - down from £146m.
The reduction in the order book for delivery in the coming 12 months reflects a £9m reduction in the level of 'one-off' orders and the change in mix as European defence activity has been replaced with more commercial and industrial business with shorter order cycles.
e2v anticipates order intake to gradually strengthen in the remainder of the year, including the renewal of the scheduled longer term radiotherapy orders.
Net borrowings are down from £0.6m to £27.5m. The group remains in a sound financial position.
CEO Keith Attwood (pictured above) said: “We are pleased that the group's trading is continuing in line with our expectations. The order book profile is changing, as we anticipated, in line with our business plans. Our outlook for the full year remains unchanged.”