22nd Jun 2005 07:00
Ultra Electronics Holdings PLC22 June 2005 Embargoed until 0700 22 June 2005 Ultra Electronics Holdings plc ("Ultra" or "the Group") Trading Update The Board of Ultra is reporting on trading before the Group enters the closeperiod in respect of its interim results for the six months ending 30 June 2005,which will be announced on 1 August 2005. In a separate announcement today,Ultra provides information on the effects of adopting International FinancialReporting Standards ("IFRS"). Trading Trading in the period is in line with expectations and sales growth continues,boosted by contributions from last year's acquisitions, DNE Technologies ("DNE")and Videcom together with an initial contribution from Horizon Aerospace("Horizon"), acquired in March 2005. Horizon has been fully integrated intoFlightline Systems within Ultra's Tactical & Sonar Systems division which alsoincludes DNE. Videcom is part of the Airport Systems business within Information& Power Systems. Tactical & Sonar Systems is achieving modest sales growth pending theintroduction of a new US sonobuoy variant in the second half of the year. InAircraft & Vehicle Systems, trading reflects the buoyancy of the civil aerospacemarket and increasing sales of equipment for armoured vehicles. WithinInformation & Power Systems strong growth continues driven mainly by highersales of Ultra's ADSI real time command and control system. Despite currency effects, margins continue to improve as the Group maintains itsfocus on achieving operational efficiencies while delivering to customers thehigh quality products and services required. Following the outstanding operating cash performance achieved in recent yearsand especially in the second half of 2004, there will be some increase inworking capital levels in the first half of 2005, as previously signalled. TheGroup's balance sheet remains strong. Ultra has headroom for further acquisitions and the Group continues actively toconsider complementary businesses that can be acquired at appropriate prices. New business Several important new contracts have been won in the first half of 2005.Significant orders for Ultra's battlespace IT products including ADSI andhigh-capacity tactical radio systems have been received. The Group has securedpositions on the new Canadian MHP and US Navy P-8A anti-submarine warfareaircraft that are being developed. On armoured vehicle programmes, Ultra hasbeen selected to undertake system studies for FRES and the Warrior upgrade andto supply equipment on Terrier. The order book at the end of June is expected to be over £400m, representing theequivalent of about 14 months of future sales and giving a normal level ofearnings visibility for Ultra. Outlook Ultra's positioning on a broad range of international programmes gives the Boardconfidence in the Group's prospects. In conclusion, the Board expects thatUltra's performance in 2005 will be broadly in line with the current consensusof market expectations, recognising that these will now be revised to reflectthe impact of the adoption of IFRS. - Ends - Enquiries: Ultra Electronics Holdings plc 020 8813 4321Douglas Caster, Chief Executive www.ultra-electronics.comDavid Jeffcoat, Group Finance Director [email protected] Weber Shandwick Square Mile 020 7067 0700Susan Ellis / Susanne Walker Notes to editors: Ultra Electronics is a group of specialist businesses designing, manufacturingand supporting electronic and electromechanical systems, sub-systems andproducts for defence, security and aerospace applications worldwide. Ultra, which employs 2,800 people in the UK and North America, focuses on highintegrity sensing, control, communication and display systems with an emphasison integrated information technology solutions. The Group concentrates onobtaining a technological edge in niche markets, with many of its products andtechnologies being market leaders in their field. Ultra's products and services are used on aircraft, ships, submarines, armouredvehicles, surveillance systems, airports and transport systems around the world.Ultra also plays an important role in supporting prime contractors byundertaking specialist system and sub-system integration using the combinedexpertise of the Group businesses. Ultra is organised into three divisions as follows: Aircraft & Vehicle Systems including miniature airborne compressors; highintegrity software and systems; aircraft system electronics; aircraft cockpitindicators; aircraft noise and vibration control systems; airframe protectionsystems, armoured vehicle electronic information and control systems; human/computer interface equipment and shared working environment solutions. Information & Power Systems including command and control systems equipment;weapons interfacing electronics; radar tracking; electro optical tracking;surveillance systems; naval data processing and distribution; airport andairline information management systems; ID card systems; naval power conversion;signature management of naval vessels; transit system power conversion andcontrol. Tactical & Sonar Systems including secure tactical line-of-sight radio systems,multiplexers and switches; tactical data links; cryptographic equipment; active,passive and multi-static sonobuoys; sonobuoy receivers and processors;distributed surveillance sensor arrays; ship's sonar systems; acousticcountermeasure systems and ship's torpedo defence systems. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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