24th Jun 2015 06:28
LONDON (Alliance News) - FTSE 250-listed defence company Ultra Electronics Holdings PLC on Wednesday affirmed its expectations for the full year, even as it faces issues in the US market and from its terminated Oman Airport contract.
Ultra said it expectations for 2015 remain unchanged and said it continues to anticipate that its performance will be weighted toward the second half of the year.
The uncertainty surrounding the US government's budget for the 2015-16 fiscal year, and the potential of a continuing resolution on government appropriations, has continued to hit revenue from the US defence market, Ultra said. In addition, recent challenges made to the Patriot Act homeland security measures have hit revenue from its US Sotech business, while the terminated Oman Airport contract is hitting its cash position.
Despite this, the company said order intake in the first half of 2015 is expected to result in a book-to-bill ratio of around one, and it said its recent acquisitions are performing well.
Ultra also said that it will use its upcoming Capital Markets Day event to outline further plans to cut costs in its business. It said a project to standardise its systems will cost around GBP30 million but will generate annual savings of around GBP20 million, which will be used to back increased research and development investment and to improve its medium-term profits.
By Sam Unsted; [email protected]; @SamUAtAlliance
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