Ultra Electronics confident of meeting full year expectations

Defence, security and transport group Ultra Electronics expects its full year performance to be in line with expectations.

In a trading update released on Wednesday, the FTSE 250 group said strong cost control and the planned restructuring of its portfolio ensured the company performed well so far, despite difficult market conditions.

The UK general election and the beginning of the electoral campaign for the US election has further exacerbated the uncertainty generated by the debate over approval of a new budget for the US Department of Defense, the firm said.

However, Ultra said its performance up to date has been satisfying and was boosted by Ultra Electronics Herley, the company’s latest major acquisition, which has delivered results in line with expectations so far.

Meanwhile, the company said it has entered a consultation with affected employees on a proposal to close the defined benefit pension scheme for future accrual from 6 April next year.

Finally, in a separate statement, the FTSE 250 group said Mary Waldner has decided to vacate her role of finance director after the preliminary results for 2015 are announced, adding the search for a replacement has already begun.

Ultra Electronics shares were up 2.23% to 1,784.00p at 0831 GMT on Wednesday.