Ultra Electronics profits up despite spending squeeze

1st Aug 2011 09:55

High-tech defence products supplier Ultra Electronics managed to squeeze out a higher pre-tax profit in the six months to 1 July, despite the impact of spending cuts in the UK and US. Ultra, whose range of products includes unmanned aerial vehicles and joysticks for planes, saw revenues decline to £343.5m from £350.9m, but pre-tax profits rose to £43.9m and £35.7m."Even in a year of difficult market conditions, Ultra continues to reinvest in its portfolio of differentiated products and services," chief executive Rakesh Sharma said. "These are positioned on a large number of international platforms and programmes in the defence, security, transport and energy markets. "He said that spending contractions in the UK and the US have deferred orders, but that it has still achieved organic revenue growth and improved margins.At 10.15am, shares in Ultra were up by 18p at 1,591p.---RG