26th Jun 2006 07:01
Ultra Electronics Holdings PLC26 June 2006 Embargoed until 07.00 26 June 2006 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 2006,which will be announced on 31 July 2006. Trading for the period is in line with expectations. Compared to the first halfof 2005 and in spite of adverse currency effects, margins are expected to bebroadly similar as the Group maintains its focus on achieving operationalefficiencies. The performance of Tactical & Sonar Systems includes contributions from HorizonAerospace (now part of Flightline Systems) and Audiopack, both acquired in 2005.Within the Group's Aircraft & Vehicle Systems division, Polyflex, acquired inJanuary 2006, has now largely been integrated into Precision Air Systems.In Aircraft & Vehicle Systems, the buoyant civil aerospace market continues todrive revenue growth which is also being boosted by customer-funded developmentprogrammes. Profit growth in the first half will reflect Ultra's investment inthe wing ice protection system for Boeing's highly successful 787 aircraft.Revenue in Information & Power Systems in the half year is being affected by thetiming of certain defence and security programme awards. This effect is largelybeing offset by continuing strong growth of sales of airport IT systems and ofthe ADSI real time command and control system. Margins in this division areexpected to strengthen due, in part, to an increase in licence fees from thesale of additional ADSIs. There is also a benefit from last year's restructuringof the Group's transit power operations. As anticipated, Tactical & SonarSystems is achieving strong growth due to the acquisitions noted above but alsodue to higher sales of tactical radios, mainly for the US Army, and of torpedodefence systems for the Royal Navy Ultra's strong performance in the second half of 2005 will impact operatingcashflow in the period, as will the Group's continuing investment in the Boeing787 and Airbus A400M programmes. The operating cash conversion is expected to bein the region of 50%, as anticipated. The order book at the end of June is expected to show a significant increasefrom the value at the same time last year. This level of firm order covercontinues to provide Ultra with high earnings visibility. The Group haspositions on a broad range of international programmes, none of which accountsfor more than 5% of revenues in any year. This spread of activities continues tounderpin the resilience of Ultra's performance. In conclusion, despite the recent volatility in exchange rates, the Boardanticipates that Ultra's results in 2006 will be broadly in line with marketexpectations. - 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 / Louise Robson 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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