E2v restructuring means UK site closure

The Chelmsford based plc, once a part of the GEC/Marconi electronics conglomerate, announced that revenue for the half year to 30 September was £96.2million, down from £107m in the same period last year. Pre-tax profit fell from £31m to £2.6m. E2v said the restructuring was part of an extensive acceleration of its 'Fit for the Future' programme and will affect the operations predominantly in France, but also in the UK. The potential French restructuring programme includes the company's imaging business at Grenoble where the options include potential job losses as a result of changes at its wafer fabrication facility and of specialist semiconductor activities and support functions. In the UK, the manufacturing activity of the Lincoln-based microwave and high speed electronics business is to be transferred to Chelmsford and consideration is being given to 'other cost reduction activities'. E2v said the restructuring costs would amount to £33m and would provide savings of around £26m a year. The company also announced that it proposes to raise £55.8m to reduce debts by the issue of new shares through a rights issue. Chief executive Keith Attwood (pictured) said: "The rapid decline in demand experienced through the latter part of 2008/09 has continued during the first half of 2009/10. As a consequence of management's continuing focus on costs and cash along with significant support from the workforce in general, we managed to deliver a small adjusted profit before tax and substantially reduce our net borrowings. "Looking forward, whilst some uncertainty remains, we now believe that our markets appear to be stabilising, and consequently, have started consultations on a potential accelerated restructuring programme, to better match our capacity to meet anticipated demand."