Ultra Electronics Holdings PLC Trading Statement (0218R)
December 06 2016 - 1:00AM
UK Regulatory
TIDMULE
RNS Number : 0218R
Ultra Electronics Holdings PLC
06 December 2016
Embargoed until 0700 6 December 2016
Ultra Electronics Holdings plc
("Ultra" or "the Group")
Trading Statement
Ultra, the international defence, security, transport and energy
group, today issues a scheduled Trading Statement ahead of its year
end on 31 December 2016.
The Group's full year trading performance remains in line with
expectations. There continues to be an improvement in organic
trading performance year-on-year and recent acquisitions are
performing well. Organic revenue will be slightly below our
previous guidance. Group order intake has been robust although
there continue to be delays in a small number of export contract
awards that have impacted the amount of revenue that can be taken
in the current year. Most significant is the delay in a torpedo
defence contract for India that is yet to be signed, despite having
been won in November 2015. The Group's balance sheet remains strong
and we expect Net Debt/EBITDA to be around 2.0x by the year end,
despite the impact of foreign exchange on dollar debt. We expect
cash conversion to be above 70%.
Conditions in Ultra's markets remain mixed, as noted on 1 August
in the Group's interim results announcement. US defense outlays
show spending in line with DoD budget forecasts but a three month
Continuing Resolution (CR) reflects underlying budget disagreements
and pressures. The CR is now likely to extend into the first
quarter of 2017. In the UK, the depreciation of sterling and
uncertainty over the UK economy has yet to have a discernible
impact on government spending. Export markets dependent on oil
& gas revenues remain depressed but increasing security
concerns and regional tensions are driving spending in priority
areas, such as surveillance.
The Group has secured a number of key contracts over the
period:
-- The award of a US $34.6 million cost-plus-fixed-fee contract
by the Department of the Navy to continue providing cyber-secure
critical infrastructure solutions. Initial tasks of US $13.9
million should be completed by September 2017
-- A contract valued at GBP7.5m from the Philippine Department
of National Defence for Phase 3B of the Jacinto Class Patrol Vessel
Restoration and Sustainment Program
-- A contract valued at just over $6.6 million from Lockheed
Martin for the non-recurring engineering, production of the MK 48
Torpedo Array Nose Assembly as well as engineering services and
spares. Options to extend the contract for a further four years
could increase this initial value to $27 million
-- A GBP6.5m award for cyber protection for a significant overseas customer
Ultra will announce its final results for the year ending 31
December on 6 March 2017.
- Ends -
Enquiries:
Ultra Electronics Holdings PLC
www.ultra-electronics.com
Rakesh Sharma, Chief Executive +44 20 8813 4300
Amitabh Sharma, Group Finance Director
Susan McErlain, Corporate Affairs Director +44 7836 522 722
MHP Communications
James White +44 20 3128 8756
Cautionary Statement:
The trading statement contains certain forward-looking
statements. These statements are made by the directors of Ultra in
good faith, based on the information available to them up to the
time of the publication of the trading statement but such
forward-looking statements should be treated with caution due to
the inherent uncertainties, including both economic and business
risk factors, underlying any such forward-looking statements.
Ultra undertakes no obligation to revise or update any forward
looking statement contained within this announcement, regardless of
whether those statements are affected as a result of new
information, future events or otherwise, save as required by law
and regulations.
Further information about Ultra:
Ultra Electronics is an internationally successful defence,
security, transport and energy company with a long, consistent
track record of development and growth. The Group manages a
portfolio of specialist capabilities generating innovative
solutions to customer needs. Ultra applies electronic and software
technologies in demanding and critical environments ranging from
military applications, through safety-critical devices in aircraft,
to nuclear controls and sensor measurement. These capabilities have
seen the Group's highly differentiated products contributing to a
large number of platforms and programmes.
Ultra has world-leading positions in many of its specialist
capabilities and, as an independent, non-threatening partner, is
able to support all of the main prime contractors in its sectors.
As a result of such positioning, Ultra's systems, equipment or
services are often mission or safety-critical to the successful
operation of the platform to which they contribute. In turn, this
mission-criticality secures Ultra's positions for the long term
which underpins the superior financial performance of the
Group.
Ultra offers support to its customers through the design,
delivery and support phases of a programme. Ultra businesses have a
high degree of operational autonomy where the local management
teams are empowered to devise and implement competitive strategies
that reflect their expertise in their specific niches. The Group
has a small head office and executive team that provide to the
individual businesses the same agile, responsive support that they
provide to customers as well as formulating Ultra's overarching,
corporate strategy.
Across the Group's three divisions, Ultra operates in the
following eight market segments:
* Land
* Aerospace
* Maritime
* Communications
* Nuclear
* C2ISR
* Infrastructure * Underwater Warfare
This information is provided by RNS
The company news service from the London Stock Exchange
END
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