Ultra Electronics Holdings plc.
Interim Results for the six months to 30 June 2012
FINANCIAL HIGHLIGHTS
|
Six months to 30 June 2012 |
Six months to 1 July 2011 |
Change |
|
|
Revenue |
£370.2m |
£343.5m |
+8% |
|
Underlying operating profit(1) |
£57.5m |
£55.8m |
+3% |
|
Underlying profit before tax(2) |
£54.5m |
£52.1m |
+5% |
|
IFRS profit before tax |
£39.1m |
£43.9m |
-11% |
|
Underlying earnings per share(2) |
58.1p |
54.6p |
+6% |
|
Interim dividend per share |
12.2p |
11.7p |
+4% |
(1) before amortisation of intangibles arising on acquisition and adjustments to deferred consideration net of acquisition costs. IFRS operating profit £41.5m (2011: £44.0m). See Note 4 for reconciliation.
(2) before amortisation of intangibles arising on acquisition, fair value movements on derivatives and adjustments to deferred consideration net of acquisition costs. Basic EPS 41.9p (2011: 46.4p). See Note 9 for reconciliation.
Steady performance in difficult market conditions delivering 8% revenue growth
- Continuing re-investment to drive future growth
- - over 6% of revenue reinvested in new business and products
- - three acquisitions announced in the period
- Underlying operating margin(1) of 15.5%
- 12 month rolling cash conversion of 106%
- Robust balance sheet
- - interest cover of over 24 times
- - headroom for further acquisitions
Rakesh Sharma, Chief Executive, commented:
"These interim results reflect a steady performance in difficult conditions within Ultra's core defence markets. In the US, the forthcoming presidential election and the threat of sequestration combine to fuel funding uncertainties that will probably continue into 2013. In the UK, the prolonged effort to balance the defence budget has led to uncertainty in the procurement process, with contract officers unwilling to commit funds and delaying programmes. Within Ultra's non-defence markets there were good performances across the Group. Furthermore, investment has increased in new products and business development which, together with the acquisition of three companies, will underpin future growth.
The Board remains confident in the Group's strategies which are constantly to broaden Ultra's portfolio of products and services that are positioned on a large number of international platforms and programmes in the defence, security, transport and energy markets. Further, the Group looks to broaden its customer base with sales outside the UK now representing over 70% of Group revenue, while growing sales in the security and cyber, transport and energy markets account for about 45%. Ultra continues to be cash generative and has the balance sheet strength to maintain its investment, both in acquisitions and internally, in market sectors where customers will prioritise and protect expenditure. While recognising slower end markets and lower than normal visibility in the defence sector, the Group has a resilient business model and this underpins the Board's confidence of continued progress in 2012 and beyond.
