3rd Aug 2015 07:00
LONDON (Alliance News) - Defence company Ultra Electronics Holdings PLC on Monday posted a big fall in pretax profit for the first half of the year, hit by a writedown due to the loss of its contract in Oman and by continued subdued activity in the US and UK defence markets.
The FTSE 250-listed company said its pretax profit for the six months to the end of June was GBP14.8 million, significantly lower than the GBP45.8 million it posted a year earlier. Revenue fell to GBP331.7 million from GBP341.0 million, as administrative expenses rose and the group booked a GBP16.4 million one-off cost from the liquidation of its Ithra vehicle following the termination of its Oman Airport IT contract.
Ultra said activity in the US and UK defence markets remains subdued and its order book has declined in value to GBP762.1 million at the end of June, from GBP876.8 million a year earlier.
The company said it will pay an interim dividend of 13.8 pence per share, up from 13.2p a year earlier.
"The group's first half performance is in line with our expectations and reflects a generally lower level of activity across most parts of our government related business and the expected pause in normal business given the UK and US election cycles. The uncertainty surrounding the next US fiscal budget and the potential of a Continuing Resolution in relation to Government appropriations has continued to dampen US defence revenues," said Rakesh Sharma, Ultra's chief executive.
"The full-year performance is weighted to the second half of the year and is expected to remain in line with previous guidance of a stable 2015 performance," Sharma added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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