(recasts with detail from statement)
LONDON (Thomson Financial) - Ultra Electronics Holdings PLC. announced a 16
percent rise in half year pre-tax profits and said it was well-placed to grow,
despite the global economic downturn.
Ultra said pre-tax profit before intangible amortisation and other items in
the six months to June 30 was 30.4 million pounds, against 26.2 million a year
ago.
The group, which makes electronics for aircraft, railways and other
industries, said financial market conditions in the first half of 2008 had
become more difficult, with a consequent impact on consumer confidence.
It said, however, that it has an order book of 645 million pounds and a
broad range of businesses with long term programmes, providing a good level of
visibility and protection from current economic volatility.
"Ultra's business is, in the main, driven by long-term programmes which are
unaffected by short-term perturbations in credit markets and consumer spending,"
the company said.
The company said it had increased the pace of its acquisition programme
during the period, with the purchase of four businesses including for a total of
45.4 million pounds, including Canada's Magneto Inductive Systems Ltd (MISL),
Southampton-based Graytronics Ltd and U.S. companies ProLogic Inc and Harris
Acoustics.
It said it is targeting further acquisitions of companies with a proven
track record, differentiated positions in growing niche markets and which can be
bought at appropriate prices.
"The group's balance sheet will support further purchases and the pipeline
of potential targets is healthy," it said in a statement.
Ultra said revenue in its aircraft & vehicle systems business increased by
19 percent to 58.9 million pounds, compared to 49.5 million pounds in 2007,
while operating profit increased by 21 percent to 9.3 million. The division's
order book at the end of the period was 195.1 million, compared with 173.6
million a year earlier.
It said solid demand across the division's businesses drove the revenue
growth, with profit growth reflecting efficiencies achieved in all areas.
Ultra said a continuing high level of international tension was sustaining
worldwide defence spending. It said it was well-placed to win further work in
the medium term to satisfy demand during a period of re-building of military
systems following a scaling-down of current operations in areas such as Iraq.
In the civil aerospace sector, both Boeing and Airbus have long order books
which continue to grow and their aircraft build rates are planned to increase
steadily for the next few years, Ultra said.
There was also strong demand for business jets, while demand for integrated
airport IT systems is underpinned by the continuing need to upgrade airports and
to increase passenger capacity.
"Ultra is well positioned to benefit from the demand in these market
sectors," it said.
The group said it made operating profit before amortisation during the six
months of 32.5 million, compared with 27 million previously, on a 20 percent
rise in revenues to 231.9 million pounds.
It increased the interim dividend per share to 8 pence from 6.7 pence
beforehand.
philip.waller@thomsonreuters.com
paw/ejp/paw/ejp
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