Ultra Electronics swings back into profit

1st Mar 2010 07:33

Defence industry supplier Ultra Electronics returned to the black in 2009 boosted by acquisitions and the weak pound.The group, which supplies pneumatic compressors for weapons release and missile cooling, reported a pre-tax profit of £107.9m for the year ended 31 December 2009 compared with a loss of £2.9m a year earlier. Revenue rose to £651.0m during the year from £515.3m before. Year end orders fell to £762m from £783.5m in 2008 after delays in the award of contracts in the UK as defence priorities were re-examined. Ultra has firm positions on programmes that will drive strong order intake in 2010, it said.Commenting on market conditions, Ultra said "the level of international tension is not reducing and this results in continuing expenditure worldwide on defence and security."Chief executive Douglas Caster added, "Ultra has created a resilient business model that will drive future order intake and support its performance in 2010 and beyond." Ultra has recommended a 20% increase in its dividend to 31.2p a share.