Ultra Electronics increases 2013 interim dividend by 4.1%

FINANCIAL HIGHLIGHTS

Steady performance, with revenue and operating profit as expected

Investment to drive future growth maintained

- 5% of revenue reinvested by Ultra in new products and business development

- acquisition of one specialist business in the period

Underlying operating margin of 15.7%

Cash conversion of 81%

Robust balance sheet at x0.72 net debt/EBITDA with headroom for further acquisitions

Rakesh Sharma, Chief Executive, commented:

"Ultra's steady performance reflects the anticipated conditions across our markets. The security & cyber, transport and nuclear energy markets, now 46% of the Group's business, remain strong with good trading in the period. Procurement process constraints and uncertainty in both the US and UK defence markets currently impact order flow and reduce visibility. Despite this, the Group has secured a number of key contract wins. Ultra is maintaining its investment in new products and business development, while continuing to broaden and diversify its customer base and markets worldwide, supported by targeted acquisitions. The Group's operating businesses continue to resize and reshape to match market conditions in a balanced approach that protects current performance while positioning for medium and long-term growth. Ultra is bidding on a number of larger contracts that, if won, could provide additional medium-term growth, although at present the timing of these is uncertain. These opportunities aside, the Group is performing as expected at this stage of the year and the Board is confident of its performance expectations being met for the year as a whole."