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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.£1149.7m
Last close1,572.00p
High / Low (52 weeks)1902.0p / 1142.0p
Stock market listingLN
Forecast net debt (£m)183.6
Forecast gearing ratio (%)45
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual(9.8)3.9(18)
Relative *(9.1)5.3(20.8)

* % 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 11.7 9.4
2017A 775.4 133.8 110.0 116.7 13.5 11.5
2018E 743.6 121.2 93.7 99.0 15.9 13.6
2019E 767.1 131.8 101.9 114.5 13.7 8.1

Last updated on 06/08/2018

Investment summary

The overall picture of improving global defence spending supports a return to organic growth for UItra. This is already reflected in the uplift seen in the order book at the H118 report. The company is well positioned to leverage the growth in naval budgets and increased demand for military aircraft around the world. Ultra also has a significant role to play in commercial aerospace, energy and cyber markets. Our fair value is 1,918p.

Last updated on 06/08/2018

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 27/07/2018

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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