Revenue down at Ultra as US defence market challenges persist

DEFENCE sector supplier Ultra Electronics, which has operations in Birmingham and Rugeley, has seen its revenue dip by around £15m.

Reporting its results for the year ended December 31 this morning the firm revealed revenue of £745.2n, a 2.1% decrease on the £760.8m achieved 12 months earlier.

Underlying profit before tax was largely unchanged at £116.8m (2012: £116.5m).

The firm described its performance as “sustained” despite the challenging US defence market conditions.

Chief executive Rakesh Sharma, said:  “In the US defence market, overall uncertainty and delays rather than budget constraints impacted order placement and payment approvals.

“In response to these factors Ultra continued to reduce business costs, whilst maintaining its investment internally and in acquisitions.

“There continue to be a number of larger opportunities for growth alongside the regular flow of smaller orders and we have a healthy acquisition pipeline, as evidenced by the recent acquisition of 3 Phoenix Inc. 
 
“During 2014, Ultra’s non-defence sectors are expected to remain positive. The US defence market will continue to provide challenges but we expect improving certainty and order placement in Ultra’s niche areas during the second half of the year.

“Ultra will continue its geographic expansion and development of collaborative solutions to secure new contracts.

“The focus on investment and tight cost management will remain integral to our business strategy.”