TIDMULE
RNS Number : 5389B
Ultra Electronics Holdings PLC
11 January 2018
Embargoed until 0700 11 January 2018
Ultra Electronics Holdings plc
("Ultra" or "the Group")
Post-Close Trading Statement
Ultra, the international defence, security, transport and energy
group, today issues a post-close trading statement in respect of
its year ended 31 December 2017.
2017 Performance
Group trading remains in line with the announcement made on 10
November 2017. Full year revenue is expected to be over GBP770m and
underlying operating profit just over GBP120m. Cash conversion is
expected above 90% and follows the cash conversion of 92% for the
year ended 31 December 2016. Order intake has continued to be
strong at around GBP900m. The Board remains minded to recommend a
final dividend of 35p per share and will finalise this when the
Group announces its full year results.
2018 Outlook
The Group enters the year with an order cover on expected 2018
revenues of around 62%, compared with approximately 56% in 2017. At
this early stage of the year, the current expectations for 2018
are:
-- Modest progress in underlying revenue and operating profit at
constant currencies after investing for the future through
increased R&D and capital expenditure.
-- Trading performance for each half of 2018 is expected to be
approximately 48%:52%.
-- Further good cash generation. The medium term guidance for
cash conversion remains in line with the 80% to 85% levels
mentioned in the announcement of 10 November 2017.
The Group will adopt IFRS 15 with effect from 1 January 2018 and
will provide pro-forma 2017 results under IFRS 15 in March. The
Group does not expect any material impact arising from this. Ultra
also notes the approval of the new US tax legislation and Jobs Act.
The Group anticipates that the announced changes will have a minor
impact on the Group's effective tax rate for 2018 and will give
further guidance on this in March.
The search for a new Chief Executive is underway and the Group
will update the market when appropriate.
Douglas Caster, Executive Chairman commented: "Ultra continues
to be a world-leading business with extensive intellectual
property, strong market positions, differentiated technologies,
talented people and a strong balance sheet. The Group's core
strengths include world-leading positions in many of its specialist
capabilities. It has positions on a broad number of long term
platforms and programmes, significant exposure to the strengthening
US defence budget, and growing demand for advanced defence
technologies. The Group also has good visibility through a strong
order book of just under GBP900m which excludes contributions from
a large volume of IDIQs (US DoD indefinite delivery indefinite
quantity contracts) and other off order book aerospace contracts.
The Board is confident that Ultra has sustainable operating trading
momentum with a significant number of recent long-term contract
wins."
Ultra's results announcement for the year ended 31 December 2017
is scheduled for 5 March 2018.
- Ends -
Enquiries:
Ultra Electronics Holdings PLC
www.ultra-electronics.com
Douglas Caster, Executive Chairman +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
The person responsible for arranging the release of this
announcement on behalf of the company is Amitabh Sharma, Group
Finance Director.
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:
-- Aerospace -- Land
-- Communications -- Maritime
-- C2ISR -- Nuclear
-- Infrastructure -- Underwater Warfare
This information is provided by RNS
The company news service from the London Stock Exchange
END
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