Smooth sailing for Ultra Electronics despite rough seas

Against a backdrop of continuing regional tensions and conflicts, things were continuing to look up for Ultra Electronics, the company told shareholders ahead of its annual general meeting later in the day.

Year-to-date, conditions for the defence electronics and infrastructure security outfit were the same as when it last updated investors, on 6 March.

On that occassion, Middlesex-based Ultra said the defence sector has seen additional impetus from the results of the US elections, with global defence sales expected to bottom out in 2017 after a multi-year decline and grow 3%.

"While the current Continuing Resolution and budget negotiations will delay spending into the second half of 2017, there are now strong indications of an increase in the US defence budget in excess of current budgetary controls," the company said in its preliminary full-year results statement published that day.

Trading and cash performance is as expected for this stage of the year, the company added, and expectations for the full-year unchanged.