Higher profits at Ultra Electronics

Defence firm Ultra Electronics reported a 12% jump in full year pre-tax profit after strong demand for its control systems and nuclear sensors.

The group, which makes sonars for submarines, said underlying profit before tax rose to £114.9m in the year ended 31 December 2011 from £102.7m the year before. Revenue rose to £731.7m from £710.0m previously after robust demand for sensors and control systems used by the military.

However the group cautioned that cutbacks in defence budgets in the UK and US will weigh on progress in 2012 with only, "a few new platforms being commissioned in the US and UK in the near term," it said in a statement.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Ultra, which also makes aerospace and cyber-security products, said overall its order book was up 16% to £950m.

Ultra said its strategy is, "to broaden its portfolio of products and services that are positioned on a large number of international platforms and programmes in the defence, security, transport and energy markets. Ultra has a broad customer base worldwide, with sales outside the UK now representing about 70% of group revenue."

Together with the full year benefit of acquisitions made in 2011, Ultra said it is confident of continued progress in 2012 and beyond.

Ultra added that it has a robust balance sheet with headroom for further acquisitions.

A final dividend of 26.8p has been offered, up 12% from last time.