19th Jul 2021 09:32
(Alliance News) - Ultra Electronics Holdings PLC on Monday reported a jump in first-half profit, leaving the aerospace and defence engineering company confident on its prospects.
Revenue for the six months to July 2 slipped 2.1% to GBP404.5 million from GBP413.1 million a year before. On an organic constant-currency basis, revenue rose 4.7%. Pretax profit jumped 55% to GBP46.2 million from GBP29.8 million.
Sales benefitted from a 50% increase in year-on-year demand across the US Department of Defense for tactical radio equipment sales and good demand for radar warning receivers.
The revenue performance was a strong one "particularly given the mainly Covid-19 driven operational inefficiencies and supply chain disruption experienced in [the first quarter], which are now broadly resolved," the company said.
The London-based company noted "very strong order cover" with GBP12 billion in its sales pipeline and further growth in its order book to a record high of GBP1.3 billion in the six month period.
Looking ahead, Ultra Electronics said its focused strategy and improved execution allows for increased confidence in delivering above-market growth.
"Our Focus Fix Grow transformation programme is already delivering ahead of plan and we are now more confident in our improvement potential with a better payback than originally anticipated," commented Chief Executive Simon Pryce.
"This should allow us to accelerate top-line growth and gain market share through additional investment in research and development, improved operational delivery and by further optimising our cost base."
The group proposed an interim dividend of 16.2 pence, up 5% from 15.4p a year previously.
Ultra shares were 0.1% lower at 2,364.00 pence each in London on Monday morning.
By Will Paige; [email protected]
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