Ultra Electronics sees return to growth in global defence market, raises dividend
Strong cash generation and order intake helped Ultra Electronics drive full-year bottom-line growth despite delays to a small number of export contracts.
Aerospace and Defence
11,484.77
09:09 07/10/24
FTSE 250
20,797.62
09:10 07/10/24
FTSE 350
4,561.67
09:10 07/10/24
FTSE All-Share
4,519.01
09:10 07/10/24
Ultra Electronics Holdings
3,500.00p
17:09 29/07/22
The defence electronics specialist saw full-year 2016 top-line growth of 8.2% to £785.58m, while underlying profits before tax increased 6.9% to £120.1m.
Net debt as a porportion of earnings before interest, depreciation, taxes and amortisation was reduced to 1.76 times, alongside an improvement in operating margins to 16.7%.
On an IFRS basis, profits jumped 94.3% to £67.6m as its organic order intake grew by 10.4% and by 22.0% in total terms.
The company forecast a return to growth for the global defence market, amid increased spending from the US government and amid heightened global tensions.
The total 2016 dividend payout was hiked by 3.7% to 47.8p and the final dividend by 4.0% to 33.6p.