Half year revenues flat for defence supplier Ultra

DEFENCE supplier Ultra, which has operations in Birmingham and Rugeley, has seen half year revenues fall 0.7%, blaming “anticipated market conditions”.

Revenue for the six months to June 30, 2013 fell to £367.7m (2012: £370.2m), with pre-tax profit slightly ahead at  £55.4m (2012: £55m), an increase of 0.7%.

Underlying earnings per share rose 1.5% to 59.5p (2012: 58.6p), while the interim dividend increased 4.5% to 12.7p (2012: 12.2p).

“Ultra’s steady performance reflects the anticipated conditions across our markets,” it said in its results statement.

The security & cyber, transport and nuclear energy markets, which now represent 46% of the group’s business, were said to be strong with good trading across the period. However, procurement process constraints and uncertainty in both the US and UK defence markets impacted order flow and reduced visibility. Nevertheless, it said the period had seen a number of key contract wins.

The group said it would maintain its investment in new products and business development, while continuing to broaden and diversify its customer base and markets worldwide, supported by targeted acquisitions.

Rakesh Sharma, Ultra’s chief executive, said: “The group’s operating businesses continue to resize and reshape to match market conditions in a balanced approach that protects current performance while positioning for medium and long-term growth,” it said.

“Ultra is bidding on a number of larger contracts that, if won, could provide additional medium-term growth, although at present the timing of these is uncertain. These opportunities aside, the group is performing as expected at this stage of the year and the board is confident of its performance expectations being met for the year as a whole.”

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