Ultra Electronics Holdings plc (LON:ULE) today announced Interim results for the six months to 30 June 2019.
· A solid start to the year
o Benefitting from strong markets
o Good order book development
o Continued organic revenue growth
o Delivering as anticipated
· Focus; Fix; Grow
o Ongoing strategic evolution and cultural change
o Increased investment in R&D and IT
o Progress on ‘Fix’ improvement initiatives
o Identifying additional future improvement and growth potential
· Long term opportunities
o Key positions on new programmes
Simon Pryce, Chief Executive Officer, commented:
“It has been a solid start to the year. Ultra is benefitting from strong US defence spend and increased demand on existing programmes. This helped us to deliver good order book and revenue growth and an improved financial performance in the first half. We are also making encouraging progress in changing Ultra’s culture and on our strategic journey to become a more collaborative and value focussed application-engineered defence, critical detection and control solutions provider.
We have positive momentum into the second half and remain confident that 2019 will be a year of good progress for Ultra. Importantly, we have won good positions on a number of key new programmes which have significant long term potential. Together with our Focus; Fix; Grow initiatives, which are beginning to have an impact, this gives us confidence in the longer term improvement and growth opportunities for Ultra.”
Ultra Electronics Holdings plc will host a presentation to analysts on 7 August 2019 at 9.15am (BST) at Investec, 30 Gresham Street, EC2V 7QP. An audio webcast will be broadcast live via the following link http://bit.ly/ULE_H1webinar
Alternatively, a listen-only conference call will also be available on +44(0)330 221 0088; access code 787-558-277. An archive version of the presentation will be accessible on Ultra’s website later today.
(1) Underlying profit, cash flow and earnings per share (EPS) are used to measure the trading performance of the Group as set out in notes 4 and 9. Underlying operating margin is the underlying operating profit as a percentage of revenue. Operating cash conversion is underlying operating cash flow as a percentage of underlying operating profit.
(2) Organic movements are the change in revenue, profit and order book at constant currencies when compared to the prior period results as adjusted for any acquisitions or disposals to reflect the comparable period of ownership, and as if IFRS 16 had applied in the prior period.
(3) Net debt to EBITDA: as IFRS 16 became effective half-way through the rolling 12 month period ended 30 June 2019, net debt and EBITDA for the current period is being calculated on a consistent basis to prior periods i.e. excluding the impact of IFRS 16. EBITDA is the underlying operating profit for the twelve months preceding the period end, before depreciation charges and before amortisation arising on internally generated intangible assets and on other non-acquired intangible assets, and adjusted to eliminate the impact of IFRS 16. The figure is adjusted to remove the EBITDA generated by businesses up to the date of their disposal in the period. Net debt comprises borrowings excluding IFRS 16 finance lease liabilities, less cash and cash equivalents. This treatment is consistent with Ultra’s financial covenants which are also calculated excluding the impact of IFRS 16.
(4) Underlying tax is the tax charge on underlying profit before tax. The underlying tax rate is underlying tax expressed as a percentage of underlying profit before tax.
(5) Finance charges exclude fair value movements on derivatives and, prior to 31 December 2018, excluded defined benefit pension finance charges.
(6) Bank interest cover is the ratio of underlying operating profit to finance charges associated with borrowings.