Ultra Electronics keeps costs down to offset UK defence cuts

Ultra Electronics expects a greater second-half weighting of defence orders and revenues despite uncertainties in the market.

Ultra Electronics expects a greater second-half weighting of defence orders and revenues despite uncertainties in the market.

The international defence, security, transport and energy company said it has kept a tight rein on costs to offset the effects of a tough economic climate.

The UK's Ministry of Defence budget remains subject to sequestration cuts of $43bn as the government struggles with its deficit.

"The group is maintaining its customary vigilance around cost control as individual businesses adjust to their market conditions," Ultra said.

"Restructuring has continued during the first half of 2013 and, as detailed in March, will include a £2.4m cost in the TCS radios business."

Net savings from the restructuring will accrue in the second half of the year.

The first half will reflect higher bid costs depending on the successful negotiation of a new programme in the Far East.

Ultra said its balance sheet was strong and there has been no significant change in its financial position since last month.

"The group is well positioned on new build and upgrade programmes that will serve to underpin growth into the medium term."

Shares rose 0.49% to 1,628p at 08:20 Friday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020
The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020