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Ultra Electronics (LSE: ULE).

Head Office

Ultra Electronics

417 Bridport Road





Tel: +44 (0) 20 8813 4321

Fax: +44 (0) 20 8813 4322


The Company

Ultra Electronics is a group of businesses which manages a portfolio of specialist capabilities, generating highly-differentiated solutions and products in the DEFENCE & AEROSPACE, SECURITY & CYBER, TRANSPORT and ENERGY markets, by applying electronic and software technologies in demanding and critical environments to meet customer needs.

Aerospace Systems

Ultra provides innovative electronic, electro-mechanical, mechanical and software solutions for the most challenging aircraft requirements.

This includes high integrity electronic systems, control and instrumentation solutions for military and civil aerospace applications. An array of mission-critical products and systems for both manned and unmanned aircraft, all underpinned by comprehensive mission support and logistics capabilities.

Maritime Battlespace

Ultra continues to develop advanced systems to meet the challenges of the modern maritime battlespace.

Ultra's innovative solutions are delivering dominance in the underwater battlespace. These coupled with Ultra's world leading airborne anti-submarine warfare capabilities; sensors, combat management systems, power solutions for surface, sub-surface and unmanned platforms provides a critical operational advantage to its customers.

Land Battlespace

Ultra supports military customers around the world with its specialist products and innovative technologies for use in the land battlespace.

The Group provides systems and equipment for modern military manned- and unmanned-vehicles, which improve their reliability and performance, whilst reducing the burden on the operators and maintainers. Ultra also offers a range of innovative products optimised to support the unique challenges of the dismounted soldier.


Ultra is a world-leading supplier of tactical communication equipment and systems that enable the provision of accurate and timely data across the battlefield.

Ultra is a world leader in high-performance, high-capacity tactical radio communication systems; encryption and communication security systems; data fusion and battlespace visualisation tools; tactical data links and satellite earth stations. These capabilities enable critical information exchange to support decision makers by presenting the right information at the right time.

Security & Cyber

Ultra supports military, law enforcement agencies and civil customers around the world with its specialist communications intercept situational awareness and electronic warfare capabilities.

The Group's capabilities include lawful intercept; wireless surveillance systems for the protection of critical infrastructure areas and perimeters; and electronic warfare systems. Ultra has a broad range of situational awareness products and tools, all of which support the user in effectively planning and executing complex operations.

Airport Systems & Mass Transit

Ultra is a world leader in power systems for mass transport and IT systems for airports, with the capability to act as a Master Systems Integrator on large airport construction projects.

The Group is a leader in the design and supply of high-quality DC power products for traction applications, ranging from equipment to complete turnkey systems. Ultra is a leading provider of airport operational systems, passenger processing systems and ground handling/baggage systems, delivered as integrated solutions or managed services.

Energy & Resources

Ultra's specialist capabilities enable many of the high integrity and safety critical systems found in energy applications worldwide.

The Group's capabilities include secure energy management, safety and surveillance systems for offshore applications and power conversion systems. Ultra supports a full defence in depth approach to the nuclear industry, spanning high integrity reactor instrumentation and control, sensors, life extensions and upgrades and nuclear emergency management systems.

Interim Results for the six months to 30 June 2018 -- 6/8/2018

                      Six months to 30th June   Six months to 30 June
                      2018                      2017

Order book            [pounds sterling]969.2m   [pounds sterling]807.8m
Revenue               [pounds sterling]350.5m   [pounds sterling]366.4m
Underlying operating   [pounds sterling]47.9m    [pounds sterling]57.6m
profit* (1)
Statutory operating    [pounds sterling]30.4m    [pounds sterling]25.4m
Underlying profit      [pounds sterling]43.6m    [pounds sterling]52.3m
before tax* (2)
Statutory profit       [pounds sterling]20.0m    [pounds sterling]30.9m
before tax
Underlying basic                        45.1p                     58.3p
earnings per share
Basic earnings                          20.0p                     37.6p
per share
Interim dividend                        14.6p                     14.6p
per share
Net debt EBITDA                          1.39x                     1.78x


* Group benefitting from increased US defence spending

* Organic(3) growth in H1

** Revenue growth of 1.3% (H1 2017: organic decline of 6.7%)

** Profit growth of 1.4% (H1 2017: organic decline of 5.4%) excluding [pounds sterling]6.1m impact of development contracts

* FX headwind impact in H1: revenue by 5.5% and underlying operating profit by 5.8%

* H1 operating margin of 13.7%; 15.4% excluding impact of development contracts (H1 2017: 15.7%)

* Strong order book of [pounds sterling]969.2m, organic(3) growth of 19%

* As at 30 June 2018, [pounds sterling]49.7m spent as part of previously announced share buyback

Douglas Caster, Chairman, commented:

"The majority of Ultra's operations have had better than expected order intake during the period reflecting an improvement in our major market. As previously disclosed, cost overruns on specific development contracts impacted the reported results, however the Group as a whole performed broadly in line with management expectations."

Simon Pryce, Chief Executive Officer, commented:

"Although I have only been here a short time, it is clear that the Group has a strong and relevant technology base and a range of specialist capabilities supporting a broad number of long term platforms and programmes.

"We enter the second half with a strong order book and remain focused on execution and delivery while continuing to win new business. The Group is well positioned in areas of priority spend with significant exposure to the strengthening US defence budget. We will also be looking at the potential for greater connectivity, operational improvement and further targeted investment in core technology, processes and people. Management's expectations for 2018 are unchanged from our recent pre-close trading statement."

(1) before the S3 programme, amortisation of intangibles arising on acquisitions, impairment charges, acquisition and disposal related costs net of contingent consideration adjustments, and significant legal charges and expenses. IFRS operating profit was [pounds sterling]30.4m (2017: [pounds sterling]25.4m). See Note 4 for reconciliation.

(2) before the S3 programme, amortisation of intangibles arising on acquisitions, impairment charges, fair value movements on derivatives, unwinding of discount on provisions, defined benefit pension finance charges, acquisition and disposal related costs net of contingent consideration adjustments, significant legal charges and expense, and, in the case of underlying earnings per share, before related taxation. Basic EPS 20.0p (2017: 37.6p). See Note 10 for reconciliation.

(3) organic growth is the annual rate of increase or decrease in revenue, profit and order book that was achieved at constant currencies and when compared to the prior period results prepared on an IFRS 15 basis. Adjustment is also made for any acquisitions or disposals to reflect the comparable period of ownership.
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Title Annotation:Leading Companies in the Industry
Publication:United Kingdom Armaments
Date:Jul 24, 2019
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