Flat first half for defence group Ultra
US defence budget delays and the UK General election have been blamed for a flat first half for defence technology group Ultra Electronics.
Ultra, with sites at Rugeley in Staffordshire and in Birmingham, said its results would be weighted towards the second half after revenue in the first six months remained flat at £366.4 million, with underlying pre-tax profits also stable at £52.3m.
Despite this, the company has hiked its interim dividend payout to shareholders by 2.4% to 14.6p per share.
In July the company sealed a £180 million deal for the US-based Sparton Group. Ultra's order book is up 2.8% at £807.5m for its defence systems, ranging from anti-submarine equipment to electronic warfare.
Chief executive Rakesh Sharma said: "As previously indicated, 2017 will be more heavily weighted to the second half than normal and this is reflected in these interim results.
"Market conditions remain largely unchanged since our preliminary announcement in March. The US Federal budget was not approved until May and this, together with the recent UK General Election, has affected the progress of some contract awards.
"Nevertheless, following the strong order intake in the final part of the period, which has continued through July, we are pleased with our current order position."
He added: "We anticipate the momentum in contract awards to continue as the year progresses. Furthermore, some additional export opportunities, such as the recently announced Indian defence systems contract, are edging closer to being secured."
Ultra's S3 costs and efficiencies initiative remains on track and the group's directors are confident it will meet expectations for the year.
Ultra's PMES business is based on the Towers Business Park in Rugeley, making hi-tech power conversion and control solutions and sensors for defence, industry and even the Solar Orbiter spacecraft.
