Ultra predicts progress despite currency concerns

DEFENCE supplier Ultra, which has operations in Birmingham and Staffordshire, is expecting to benefit from US defence priorities becoming clearer as the year progresses.

In an interim management statement for the period 1 January to 29 April and ahead of today’s AGM, the firm said such a move could improve the procurement process that currently remains subject to delays.

“Ultra continues to anticipate a greater second half weighting of defence orders and revenue than is typical,” it said.

But the firm warned it continues to experience currency headwinds.

“If the US dollar rate were to remain at current levels, it would result in a translation headwind for 2014 as a whole of about £3.6m at the operating profit level,” it said.

Since the start of 2014, Ultra has spent about £100m on acquisitions. This week it strengthened its presence in the forensic science sector with the £50m acquisition of a Canadian company.

Ultra said its balance sheet remains strong and it has “substantial headroom” associated with its current banking facilities.