e2V technologies reports fall in first-half pre-tax profit

4th Nov 2013 10:52

e2v technologies reported a fall in first-half pre-tax profit as the company increased research and development (R&D) activity, expanded into new markets and recruitment more staff.The specialist provider of technology solutions for high performance systems, such as semiconductors, posted adjusted pre-tax profit of £10.8m, down from the previous year's £14.4m.Operating profit fell to £12m from £13.9 the prior year, reflecting lower gross profit and increased R&D for product development.Revenue, however, rose to £98.1m from £90.7m, representing growth of 8%.Growth was driven by demand for industrial cameras for machine vision in Asia, the group's handheld thermal imaging cameras benefitting from new product introductions and delivery on programmes for space and electronic countermeasures in the US.The order book climbed to £189m from £138m, due to the intake in high performance imaging for space and in Hi-rel semiconductors."After a slow start to this financial year, activity levels improved and we have delivered earlier than planned on certain programme," said Chairman Neil Johnson. "However, as previously indicated, profitability was below the level achieved in the same period last year. The order book is in line with our expectations and we have recruited additional staff for the expected increase in activity in the second half."The gross profit margin declined to 36% from 41%, due to a fall in prices of imaging products and lower revenues in radiotherapy and US defence semiconductors.The group raised its dividend by 8% to 1.4p."We continue to be cautious over the broader economic environment, in particular the ongoing uncertainty in the US defence sector," Johnson added. "Assuming no further deterioration in market conditions, our expectations for the group's full year trading performance remain unchanged."RD