Full year revenue rises at Ultra Electronics despite mixed market conditions

FTSE 250-listed Ultra Electronics has unveiled its preliminary results for the year ended December 31st, showing that revenue increased despite mixed market conditions across the group's broad portfolio.

Revenue rose 4.0% to £760.8m from £731.7m one year earlier. Underlying operating profit rose by 0.1% to £122.2m from £122.1m a year earlier.

Underlying earnings per share increase by 3.6% to 124.5p. The final dividend per share rose 3.7% to 27.8p and the total dividend per share rose 3.9% to 40.0p.

The company reported increased investment to drive future growth and said that revenue reinvested by Ultra in new product and business development was up to £49m from £41m in 2011.

Rakesh Sharma, Chief Executive Officer of Ultra Electronics, commented: "Ultra's results reflect good performances in the transport, energy, security and cyber sectors, offset by the challenges the group faces in its traditional defence markets.

"The UK and US defence markets have experienced a year of budget uncertainty that has delayed the start of new programmes and resulted in incremental-only funding of others, notably in the land domain.

"Mixed conditions across Ultra's sectors are reflected in the group's underlying organic performance. Nevertheless, the group continued its strategy of investment in differentiated specialist capabilities to underpin medium and long-term growth, through increased research and development and through acquisitions."

MF