Ultra Electronics sees H1 ahead of expectations

UK defence contractor Ultra Electronics said underlying first-half trading had been ahead of expectations.

In a trading update for the six months to July 2, the company said its order book continued to grow and was significantly ahead of last year on higher demand.

It added that the group had also achieved good order intake during the period and orders for the full financial year were expected to be well ahead of 2020, driven by its maritime, intelligence & communications and forensic technology units.

Revenue growth in the first half was “robust” despite previously announced mainly Covid-19 driven operational inefficiencies experienced in the maritime divisions during the first quarter that were now broadly resolved.

Net financial debt, excluding leases, fell to £32m at the end of May.