5 Aug 02. Ultra Electronics Holdings PLC said Monday that sales
increased by 9% to £125.6m, (2001: £114.9m). Pre-tax profit before goodwill amortization was 13.8m, £12.5m).
The Group’s order book stood at £319m at the end of June (December 2001: £315m) representing approximately 15 months of future sales. The order book reflects the continuing supply of equipment on existing platforms for which there are firm contracts as well as new programmes won.
No recovery in civil aerospace activity levels before the end of 2003 is assumed although the airport infrastructure investment programmes in which Ultra is involved will continue.
For Ultra’s ASW businesses, activity levels will flatten in 2003 beyond which advanced new systems are expected to enter development.
Additional ASW platforms are being developed, incorporating Ultra equipment, which are expected to drive a longer-term increase in sonobuoy usage.
Strong growth in expenditure on defence equipment in the USA is forecast to continue and Ultra is well positioned to benefit from this.
In the UK, Ultra is expected further to increase market share due to its position on key programmes.
The Group also anticipates increased activity levels on programmes for which it is already selected, such as Type 45 destroyer, Eurofighter, Astute submarine, SSTD and Heathrow Terminal 5.
The Board believes that, with its solid order book and with its strong position on new programmes, Ultra is well placed to continue its growth in the
medium-term and expects its results for the full year to be broadly in line with market expectations.
Comment; Ultra continues to power ahead in defence and has won a number of strategic contracts for Type 45 and FET. The shares responded well to close a 414p with future growth expected. There still remains the possibility of a takeover from one of the majors but in the meantime the future looks rosy for the company