Ultra Electronics underlying FY up as co awaits decision on Advent offer

23rd Mar 2022 07:15

(Sharecast News) - UK defence company Ultra Electronics reported a rise in annual profits as it awaits a UK government decision on whether US buyout specialist Advent can take over the firm.

The company on Wednesday posted a 1.8% increase in underlying pre-tax profit to£116.6m as its order book rose 22.2% to £1.3bn. On a statutory basis, pre-tax profit for the year fell to £82.7m from £103.7m.

Revenue fell to £850.7m from £859.8m due to a stronger pound.

Advent is using its own UK defence company Cobham, bought in 2020, to make a £2.6bn cash offer for Ultra, sparking fears over British security and prompting a government probe into the deal.

The private equity company and ministers have been negotiating over a series of pledges as Advent tries to get the deal approved, including granting the government oversight of contracts, future asset sales and business relationships, media reported on Tuesday.

Under the terms of the cash offer for Ultra, no final dividend will be paid and the total full-year dividend is unchanged from the interim dividend of 16.2p a share, compared with 56.9p a share in 2020.