e2v technologies revenues set to reach upper end of forecast

Electrical component supplier e2v technologies has said that its full-year trading performance is now expected to be at the upper end of management's previous expectations following a boost to sales.

Group revenue for the financial year ended March 31st is expected to be around £234m, up 3% compared with the last financial year, reflecting the combination of 10% underlying growth and last time buy revenues being significantly reduced.

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"A stronger revenue profile, combined with expecting to exceed the group's operating profit margin of 17%, should now result in a full year trading performance at the upper end of management's previous expectations," the firm said.

"We are making positive progress in executing our key growth programmes and continue to anticipate that these will convert to material future sales. Consequently, we believe the group is well positioned for continued growth."

The company expects the interest expense for the year to be around £2.5m and believes that RF Power Solutions revenue has grown at around 5% at reported levels and 6% on an underlying basis.

High Performance Imaging Solutions is expected to report revenue around 6% lower than the prior year, reflecting a significant reduction in last time buy revenues. On an underlying basis, revenue is expected to have grown by around 12%. Demand within machine vision is "steadying".

Hi-Rel Semiconductor Solutions revenue grew by around 8%, with revenues from the SLiM product continuing to benefit from existing programmes.

The group's total order book is £143m (31 March 2011: £167m), representing a decrease of £24m. Similarly, the order book for delivery over the coming 12 months is £118m (31 March 2011: £137m), a decrease of £19m.

Net borrowings at March 31st were around £30m (31 March 2011: £28m). The increase of £2m in net borrowings follows the purchase of the US facility for £4m, three dividend payments in the year and reorganisation costs of around £7m.

Over 51% of expected revenue for the year is now with customers outside Western Europe, up from 48% for the previous year.

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