Ultra Electronics trades in line in first half

International defence, security, transport and energy company Ultra Electronics issued a pre-close trading statement on Monday, ahead of its interim results for 2016, and confirmed trading in the first half has been as expected.

The FTSE 250 firm said based on exchange rates on 23 June, before the major weakening of sterling after the EU referendum, its expectations for the full year remain unchanged other than the impact of the disposal of Ultra ID.

“The cash proceeds of this sale will be used to reduce debt,” Ultra’s board said, adding “the group’s performance for 2016 will be second-half weighted, as in previous years.”

Ultra said increased programme stability has seen a useful uplift in US defence outlays in the early months of the year, and “looking ahead it is likely that there will be a continuing resolution into the early months of 2017, as expected.”

Order intake in 2016 has been positive, the board reported, with an increase in order book value over the 2015 year-end position.

It added that cash conversion is expected to follow a similar profile to 2015 with year-end cash anticipated within the normal range for the group.

“Ultra’s interim results announcement for the six months ending 1 July will be announced on 1 August,” the board confirmed.