Mystery surrounds Ultra’s sacking from Oman Airport contract

DEFENCE sector supplier Ultra Electronics is trying to get to the bottom of why its IT contract with Oman Airport was suddenly terminated.

In a statement to the London Stock Exchange this morning the firm, which has operations in Birmingham and Staffordshire, said it received notification of the termination of the contract late last night.

“Discussions with the customer will commence next week to work towards settlement,” it said.

“Ultra is unable to comment further at this stage.”
 
Ultra said that as a result of the termination there is likely to be a provision against contract balances in its2014 results, although 2014 cash is not affected. 

The impact on full year 2015 underlying profit is expected to be minimal, it said.
 
Ultra said it will update the market as soon as it is able to do so.