Interim Results for six months to 30 June 2014

04 AUGUST 2014

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.”