15th Nov 2013 08:30
LONDON (Alliance News) - Defence, security, transport and energy group Ultra Electronics Holdings PLC Friday said it expects its performance to be broadly in line with expectations in 2013, although it warned that it has been hit by the US government shutdown and a general slowdown in government spending in that market.
It said the US shutdown delayed expected orders, approvals and payments, while many of the contracts it has won are still being funded incrementally. In a warning of a potential writedown, the company said it is currently reviewing the carrying value of goodwill which it will report in its full-year results.
It also warned that it is continuing to experience delays on a contract in Oman, which means that it will now not be able to install its products until next year rather than in the fourth quarter.
Ultra said it was responding by continuing to control costs.
The company added that it has made progress on identifying and positioning for a number of larger potential contracts that will generate medium-term growth.
It is in contract talks for the five-year US sonobuoy call-off contract and thinks demand is greater than previously expected; it has won an order to supply a number of high capacity radios for "proof of concept" trials with the US Army; it has signed a strategic agreement with Johnson Controls for Ultra's cyber security technology in Johnson' industrial systems; and secured a study contract for Fuel Tank Inerting for the Chinese COMAC ARJ21-700 aircraft.
The company expects to put out its full-year results March 3.
Ultra Electronics shares were down 4.5% at 1,810 pence early Friday, the biggest decline on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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