E2v Annual Report 2010
Total Page:16
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Financial Highlights 03 l Business Overview 04 l Chairman’s and Chief Executive’s Statement 06 l Business Review 08 l Board of Directors 19 l Corporate Responsibility Review 20 l Directors’ Report 25 l Corporate Governance Report e2v technologies plc 29 l Annual Report and Financial Statements 2010 Directors’ Remuneration Report 32 l Five year history 38 l Consolidated Financial Statements 39 l Company Financial Statement 85 l k l e2v technologies plc Annual Report and Financial Statements 2010 Financial Highlights 03 l Business Overview Who we are 04 l Chairman’s and Chief Executive’s e2v’s objective is to be a global leader Statement in the design and supply of specialist 06 l components and sub-systems that enable Business Review the world’s leading systems companies 08 l to deliver innovative solutions for medical & science, aerospace & defence, and Board of Directors commercial & industrial markets. 19 l Corporate Responsibility Review 20 l Directors’ Report 25 l Corporate Governance Report 29 l Directors’ Remuneration Report 32 l Five year history 38 l Consolidated Financial Statements 39 l Company Financial Statement 85 l k l Financial Highlights e2v technologies plc Annual Report and Financial Statements 2010 Financial Highlights 233.2 204.6 201.2 03 l 233.2 173.9 204.6 126.2 201.2 173.9 108.7 Business Overview 112.3 105.0 233.2126.2 106.1 Financial Highlights 204.6108.7 204.6 201.2105.0 04 l 112.363.2 173.9106.1 126.2107.0 95.9 96.2 67.8 49.163.2 108.7 Chairman’s and 105.0 l Net debt reduction from £137m to £45m 112.3 107.0 106.1 95.9 96.2 67.8 Chief Executive’s Reported sales £m 200649.1 2007 2008 2009 2010 Statement l Sales down 14%, reflecting anticipated reduced demand; markets now 63.2 107.0 largely stabilised Reported sales £m 2006 2007 200895.9 2009 201096.2 06 l 49.1 67.8 l Run rate costs reduced by £7.5m in the year (14% reduction on an Reported sales £m 2006 2007 2008 2009 2010 Business Review annualised basis) and other within year non-recurring savings of £5.5m Reported sales £m 08 l l Adjusted* operating profit of £15m, down 45% 29.1 27.4 24.7 l Adjusted** earnings per share down 12.41p at 6.67p 29.1 Board of Directors 27.4 24.7 l Cash generated from operations of £40.0m, deployed in debt reduction 15.0 18.6 15.8 15.0 19 l 17.6 29.1 27.4 15.010.7 18.6 15.8 15.0 l Reported loss before taxation of £9.7m after 24.7 17.6 11.4 Corporate 10.5 11.6 10.7 7.1 4.3 – Business improvement programme costs and provision – £18.7m 18.6 15.8 3.6 Responsibility 15.0 15.011.4 10.5 11.6 Review Adjusted* operating profit 2006 200717.67.1 2008 2009 2010 4.3 3.6 – Offset by: (£m as restated) 10.7 20 l Adjusted* operating profit 2006 2007 2008 200911.6 201011.4 10.5 – Fair value gains on financial instruments – £2.6m; and (£m as restated) 7.1 4.3 3.6 Directors’ Report – Profit on sale of Lincoln site – £3.7m Adjusted* operating profit 2006 2007 2008 2009 2010 (£m as restated) 25 l l Equity raise of £52m net completed in December 2009 Adjusted* operating profit £m (as restated) Corporate l Order book at 31 March £161m (2009: £154m) with £132m (2009: £104m) for Governance Report delivery in coming 12 months of which £12.5m is ‘one-off’ 29 l l Consultation on restructuring for Lincoln and Grenoble completed in the year on 19.0 19.1 16.3 timetable. Programme cost reduced from £33m to £26m reflecting additional 19.0 19.1 10.7 16.3 Directors’ customer demand to deliver annual benefits of c.£26m 13.2 12.6 11.4 6.7 Remuneration 10.7 7.8 19.013.2 19.112.6 Report 16.311.4 6.74.7 4.9 5.8 6.5 2010 2009 7.82.9 2.0 32 l 10.7 4.7 13.2 £m Adjusted** £mEPS pence 2006 20074.9 200813.25.8 200912.66.5 2010 2.9 11.4 (£m as restated) 6.72.0 7.8 Sales 201.2 Adjusted**233.2 EPS pence 2006 2007 2008 2009 2010 Five year history 4.7 (£m as restated) 4.9 5.8 6.5 Adjusted* operating profit 15.0 27.4 2.9 2.0 38 l Adjusted EPS** pence Loss before taxation (9.7) Adjusted**(28.4) EPS pence 2006 2007(as restated2008 )2009 2010 Adjusted** earnings per share 6.67 p (£m19.08 as restated) p Consolidated Loss per share (1.66)p (21.75)p Financial Statements Full year dividend per share - 2.7 p Cash generated from operations 40.0 43.0 39 l Net borrowings 44.8 137.3 137.3 105.2 93.6 94.4 137.3 Company Financial 79.5 80.2 88.0 105.2 Statement 93.6 94.4 79.5 80.2 88.0 44.8 27.2 18.1 137.3 85 l 44.8 105.2 27.2 93.6 94.4 18.1 79.5 80.2 88.0 Net borrowings £m 2006 2007 2008 2009 2010 44.8 Net borrowings £m 27.22006 2007 2008 2009 2010 27.2 18.1 Net borrowings £m Net borrowings £m 2006 2007 2008 2009 2010 First half k l Second half * Adjusted operating profit is before amortisation of acquired intangibles and operating exceptional items. ** Adjusted earnings is loss for the year before amortisation of acquired intangibles and all exceptional items less tax impacts where applicable. e2v.com 3 Business Overview e2v technologies plc Annual Report and Financial Statements 2010 Financial Highlights Business Overview 03 l Revenue by division Business Overview 04 l Chairman’s and Chief Executive’s Electron devices and sub-systems Statement 06 l Business Review 08 l £65.6m (£83.8m) Board of Directors 19 l Corporate Imaging Responsibility Review 20 l Directors’ Report £53.8m (£65.2m) 25 l Corporate Images courtesy of: NASA and BAE Systems Governance Report 29 l Directors’ Remuneration Report 32 l Five year history High performance electron Advanced CCD and CMOS 38 l devices and sub-systems for imaging sensors and cameras applications including: for applications including: Consolidated Financial l Radiotherapy cancer treatment machines l Earth observation Statements l Defence electronic countermeasures l Space science and life science imaging 39 l l Radar systems l Military surveillance Company Financial l Stellar satellite amplifiers l Industrial process control Statement l Digital television transmitters l Advanced data collection 85 l l Industrial laser and welding machines l Dental x-ray systems k l e2v.com 4 Business Overview e2v technologies plc Annual Report and Financial Statements 2010 Financial Highlights Business Overview 03 l Revenue by division Business Overview 04 l Chairman’s and Chief Executive’s Specialist semiconductors Statement 06 l Business Review 08 l £50.9m (£53.3m) Board of Directors 19 l Corporate Sensors Responsibility Review 20 l Directors’ Report £30.9m (£30.9m) 25 l Corporate Images courtesy of: NASA and BAE Systems Governance Report 29 l Directors’ Remuneration Report 32 l Five year history Specialist semiconductors, including: A range of professional sensing 38 l l Own design high speed data converters products for applications including: l High reliability microprocessors in partnership l Environmental safety Consolidated with Freescale Semiconductor Financial l Fire, rescue and security thermal imaging Statements l MRAMs in partnership with Everspin l X-ray spectroscopy 39 l l Packaging and test and obsolescence management l Automotive alarm and security systems services for high reliability integrated circuits for aerospace Company Financial & defence programmes l Microwave radar and safety and arming devices Statement l Own design sensor data acquisition utilising mixed signal 85 l application specific devices k l e2v.com 5 Chairman’s and Chief Executive’s Statement e2v technologies plc Annual Report and Financial Statements 2010 Financial Highlights Chairman’s and Chief Executive’s Statement 03 l Business Overview 04 l The lower worldwide demand we have Chairman’s and experienced over the last 18 months Chief Executive’s Statement required us to take decisive action to Chris Geoghegan l 06 re-establish the business through this Chairman Business Review difficult period and reposition it for 08 l the future. Board of Directors 19 l Corporate Responsibility Review 20 l Keith Attwood Chief Executive Directors’ Report 25 l Corporate Over the last 18 months, the business has experienced extremely Overall, the Board expects the restructuring programme to provide the Governance Report challenging trading conditions which required the implementation of potential level of profitability on a broadly flat level of turnover that was aggressive short term cost reduction actions during the first half of previously anticipated at the time of the equity raise. 29 l 2009/10 and an acceleration of the established business improvement The third key step in the overall programme is to return the Group to programme to significantly reduce the fixed cost base of the business. organic growth. In October we indicated a shift in our strategic direction Directors’ The first key step to implementing this plan was to refinance the Group. towards moving up the value chain and increasing the provision of Remuneration This was completed in December 2009 with the positive support of solutions to our customers.