FINANCIAL HIGHLIGHTS
|
Six months to 30 June 2014 |
Six months to 30 June 2013 |
Change |
|
|
|
|
|
|
|
Revenue |
£341.0m |
£367.7m |
-7.3% |
|
Underlying operating profit*(1) |
£53.0m |
£57.9m |
-8.5% |
|
Underlying profit before tax*(2) |
£50.5m |
£55.4m |
-8.8% |
|
IFRS profit before tax |
£45.8m |
£39.6m |
+15.7% |
|
Underlying earnings per share(2) |
55.4p |
59.5p |
-6.9% |
|
Interim dividend per share |
13.2p |
12.7p |
+3.9% |
Order intake in first half of £408.2m increased order book by 13% (since December 2013 at constant currencies)
Revenue and operating profit performance in line with expectations
Underlying operating margin of 15.5%
Cash conversion at 80%
Investment to drive future growth maintained
- over 5% of revenue reinvested by Ultra in new products and business development
- acquisition spend of £104.1m on four specialist business
Balance sheet remains robust at 1x net debt/EBITDA; refinancing preserves investment capacity at advantageous rates
Rakesh Sharma, Chief Executive, commented:
"The interim results are in line with the Group's expectations. As indicated in March, Ultra's 2014 performance will be weighted towards the second half, principally reflecting constraints in the US defence procurement process at the start of the period. The Group has seen the positive effects of increasing stability in the US and UK defence markets, as evidenced by increased order placement towards the end of the first half. The security & cyber, transport and nuclear energy markets, now 43% of the Group's business, remain stable with good trading in the period.
Ultra continues to position for profitable growth. In addition to the four businesses acquired in the period, R&D investment in new products and business development has been maintained. Encouraging progress has been made across a number of projects such as the successful US Army field trials of Ultra's ground-breaking ORION radio. Ultra's businesses continue to optimise their size to match market conditions through cost management. The Group's order cover for the remainder of the year, together with IDIQs and annual contracts, is at normal levels, although a potential US Congress Continuing Resolution, in relation to defence appropriations, could constrain orders after October 2014. Subject to no further currency fluctuations, the Board is confident that this positioning will support performance in the second half and will enable expectations to be broadly met for the full year."
