Ultra Electronics (ULE)

Business description

Ultra Electronics is a global aerospace and defence electronics company, with operations across three divisions: Aerospace & Infrastructure (26% of 2017 sales); Communications & Security (31%); and Maritime & Land (43%).

Stock data

Market cap.£1215.8m
Last close1,631.00p
High / Low (52 weeks)2171.0p / 1142.0p
Stock market listingLN
Forecast net debt (£m)150.9
Forecast gearing ratio (%)35
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual16.213.3(21.8)
Relative *11.96.5(24.2)

* % Relative to local index

Other companies in sector Show

Company news

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 785.8 148.0 120.1 134.6 12.1 9.7
2017A 775.4 133.8 110.0 116.7 14.0 12.0
2018E 743.6 127.2 100.4 106.1 15.4 11.8
2019E 767.1 131.8 103.1 115.9 14.1 9.1

Last updated on 28/03/2018

Investment summary

Ahead of its AGM Ultra has released a first quarter trading update that indicates no change to management expectations. The company still expects to make modest progress on a constant currency basis, although it will face FX headwinds. Encouragingly, despite the adverse exchange rate movement the order backlog at the end of the quarter stood at £933m, some 2% higher than at the start of FY18. An increased weighting to the second half of cash and earnings performance is still expected. The shares trade on a relatively low P/E against many UK peers, but the discount should start to diminish if operational execution continues as planned.

Last updated on 27/04/2018

Industry outlook

With defence drivers moving towards greater demand for electronic equipment and information management, Ultra is well positioned to benefit from more frequent upgrade cycles. In addition, it appears that defence spending may have turned a corner in the western world. Ultra stands to benefit from its diversified end-markets and order book visibility.

Last updated on 06/04/2018

Key management

Douglas Caster, Chairman & CEO
Ami Sharma, CFO
India Kalsi, Head of Investor Relations

Company address

417 Bridport Road
Greenford
Middlesex
UB6 8UA
United Kingdom
+44 (0) 20 8813 4321
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