12th Dec 2005 12:00
Ultra Electronics Holdings PLC12 December 2005 Embargoed until 1200 12 December 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 preliminary results for the year ending 31 December2005, which will be announced on 27 February 2006. Trading Ultra expects that revenue for the full year will be about £340m. Marginscontinue to improve as the Group maintains its focus on achieving operationalefficiencies while delivering to customers the high quality products andservices demanded. As a result, the Board expects that Ultra's profits in 2005will be broadly in line with current market expectations. During the year, good contributions have been made by Horizon Aerospace("Horizon"), acquired in March 2005, and Audiopack, acquired in July 2005. Bothacquisitions are in Ultra's Tactical & Sonar Systems division and Horizon hasbeen fully integrated into the Flightline Systems business. As predicted, Tactical & Sonar Systems is achieving strong growth, due in partto the introduction of a new sonobuoy variant in the second half. In Aircraft &Vehicle Systems, the strength of the civil aerospace market is more thancompensating for the reduction in HiPPAG sales caused by a realignment ofdeliveries for the Eurofighter programme. Ultra's investment in the wing iceprotection system for Boeing's new 787 aircraft continues. Within Information &Power Systems, strong growth in sales of Ultra's ADSI real time command andcontrol system is offsetting the reduction in demand for power equipment,especially that for the UK rail network. Ultra's operating cash conversion percentage for the full year is anticipated tobe similar to the 73% achieved in the first half. The acquisitions of Horizonand Audiopack cost £36.5m before expenses. As a result, the closing net debt isexpected to be less than £55m. The Group's balance sheet remains strong, withheadroom for further acquisitions, and Ultra continues to consider complementarybusinesses that can be acquired at appropriate prices. New business Ultra has secured a number of new contracts since announcing its interimresults. These include orders relating to the Eurofighter programme worth over£15m. The Group is now under contract for its electronic architecture designwork on the British Army's FRES programme. Significant orders for Ultra'sbattlespace IT products including ADSI and surveillance systems have beenreceived. Demand for the Group's airport IT integration skills has also beenstrong in the period, with additional authorised tasks at Heathrow Terminal 5augmenting the important win at Shanghai Pudong airport. The order book at the end of December is expected to be around £420m, continuingto provide Ultra with a high level of earnings visibility. Outlook As noted in the interim results announcement, pressure on defence budgetsworldwide is affecting the timing of some contracts as customers prioritisetheir expenditure of funds. However, Ultra's successful positioning on a broadrange of major international programmes gives the Board confidence in theGroup's prospects for 2006 and beyond. - 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 3,000 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; voice communication systems; tactical data links;cryptographic equipment; active, passive and multi-static sonobuoys; sonobuoyreceivers and processors; distributed surveillance sensor arrays; ship's sonarsystems; acoustic countermeasure 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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