Preliminary Results for the Year Ended 31 December 2016
31 Dec 2016
31 Dec 2015
|Underlying operating profit*(1)
|Underlying profit before tax*(2)
|IFRS profit before tax
|Underlying earnings per share(2)
|Dividend per share - final
|Dividend per share - total
- Full year in line with expectations
- 92% Cash conversion - highest since 2011
- Net debt/EBITDA reduced to 1.76x
- Net debt at £256.7m – significantly improved compared to the prior year
- Operating margin increased to 16.7%
- Order intake increased by 22.0%, with organic order intake up 10.4%
Rakesh Sharma, Chief Executive, commented:
"2016 was a better year for Ultra. Our focus on the execution and delivery of the goals we had set for ourselves has resulted in a positive momentum, enabling us to report good progress against our KPIs. Strong performances in cash generation and order intake demonstrate the underlying robustness of the business. Delays to the award of a small number of expected export contracts affected short-term organic revenue. Organic profit growth reflects our disciplined approach to cost control.
Market analysis suggests a return to growth in the global defence sector, fuelled by expected higher defence spending under the new US Administration and increasing global tensions. However, the current six-month Continuing Resolution to US Federal funding will mean that some contract awards will move into the second half of 2017. Our commercial aerospace sector will benefit from increased revenues as it transitions into the production phase on a number of contracts during the year. We are committed to expanding our selected export markets through considered partnerships, although the timing of revenue will continue to be hard to forecast. The Group will remain focused on delivering cost efficiencies within its businesses. This, together with the S3 initiative, will ensure the Group is lean and ready to exploit the opportunities within its markets. The Board remains confident that further progress can be made in 2017."
(1) before Oman contract termination and liquidation related costs, the S3 programme, amortisation of intangibles arising onacquisitions, impairment charges and adjustments to contingent consideration net of acquisition and disposal related costs. IFRSoperating profit was £89.7m (2015: £66.4m). See Note 2 for reconciliation.
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(2) before Oman contract termination and liquidation related costs, the S3 programme, amortisation of intangibles arising onacquisitions, impairment charges, fair value movements on derivatives, unwinding of discount on provisions, defined benefitpension curtailment gain and interest charges and adjustments to contingent consideration net of acquisition and disposal relatedcosts and, in the case of underlying earnings per share, before related taxation. Basic EPS 82.8p (2015: 35.7p). See Note 9 forreconciliation.