Defence supplier Ultra holding firm against Brexit fears
DEFENCE supplier Ultra Electronics has said Brexit turmoil is unlikely to affect its full-year performance.
In a trading update today, the firm, which has operations in Birmingham and Staffordshire, said: “Ultra’s expectations for the full year remain unchanged.”
However, this is based on exchange rates on June 23 – before the outcome of the referendum was known and before markets went into meltdown.
As in previous years, the group said that 2016 performance would be weighed towards the second half.
“Increased programme stability has seen a useful uplift in US defence outlays in the early months of the year. Looking ahead it is likely that there will be a continuing resolution into the early months of 2017, as expected,” it added.
“Order intake in 2016 has been positive, with an increase in order book value over the 2015 year-end position. Cash conversion is expected to follow a similar profile to 2015 with year-end cash anticipated within the normal range for the group.”
The group will issue its interim results for the six months ending July 1, 2016 on August 1.