5th Jul 2021 08:29
(Alliance News) - Ultra Electronics Holdings PLC on Monday said its recent trading has topped expectations, with the aerospace and defence engineering company also seeing decent progress in its transformation plan.
Ultra said its revenue growth in the six months to July 2 has been "robust". It also noted underlying trading in the period "has been strong and ahead of our expectations".
Ultra's revenue in the first half of the previous year was GBP413.1 million.
"The order book continues to grow and is significantly ahead of last year, reflecting continued customer demand for Ultra's market leading technologies and capabilities. The group has also achieved good order intake in H1 2021 and orders for the full financial year are expected to be well ahead of 2020, driven by Maritime, Intelligence & Communications and Forensic Technology," Ultra added.
"The group's strategic progress and transformation programme is delivering ahead of our expectations, and is reflected in the group's strong performance in H1 2021."
Ultra said its indirect costs are coming in lower, with Covid-19 changing working methods. Net financial debt, excluding leases, has been reduced to GBP32 million as at the end of May, it said.
"Ultra remains an agile player in long-term growth markets, with a sustainable technology and cost advantage which positions the group well to deliver growth. The group has a robust business model with excellent order visibility, high returns on invested capital and strong cash generation," it said.
Ultra said it will provide an update on its full-year outlook at the time of its interim results.
In June, Ultra ended talks with Conham Ltd over a possible combination. Former FTSE 250 member Cobham, which is controlled by Advent International Corp, mulled a potential takeover offer for Ultra, with a view to create a "global defence electronics champion".
Ultra shares were 1.9% higher at 2,346.00 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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