FINANCIAL HIGHLIGHTS
| |
Year ended
31 Dec 2015 |
Year ended
31 Dec 2014 |
Change |
| Revenue |
£726.3m |
£713.7m |
+1.8% |
| Underlying operating profit*(1) |
£120.0m |
£118.1m |
+1.6% |
| Underlying profit before tax*(2) |
£112.4m |
£112.0m |
+0.4% |
| IFRS profit before tax |
£34.8m |
£21.5m |
+62.0% |
| Underlying earnings per share(2) |
123.9p |
123.1p |
+0.6% |
| Dividend per share - final |
32.3p |
31.1p |
+3.9% |
| Dividend per share - total |
46.1p |
44.3p |
+4.1% |
- Full year performance in line with expectations
- Underlying operating margin of 16.5%
- Cash conversion better than expected at 68% and year-end net debt of £296m
- Investment to support future growth
- R&D maintained within normal range
- $258m Herley acquisition - integration on schedule and performing well
- Standardisation and Shared Services programme on track
- Final dividend of 32.3p, an increase of 3.9%
Rakesh Sharma, Chief Executive, commented:
"2015 was a significant year for the Group, in which it completed its largest acquisition, introduced a new market segment structure and launched a Standardisation and Shared Services (S3) programme, whilst continuing to face difficult market conditions. Ultra’s full-year performance was in line with market expectations and reflected, as anticipated, a generally lower level of activity across most parts of our government related business. By year-end a comprehensive UK Strategic Defence & Security Review and a two-year US budget agreement had signalled some welcome stability although how this plays out remains uncertain.
Looking ahead, well-publicised macro factors continue to threaten governments' future funding. We expect US government defence expenditure to increase in a presidential election year, but these higher levels of spending will take time to benefit the mid-tier defence industry. For Ultra, most of the delayed orders from 2015 are expected to be secured in the first half of 2016 and we continue to have a number of secure long-term platform positions. In addition we will see a full year benefit from the Herley acquisition. Ultra's Board has considered the market conditions and business challenges and judges that the Group can make satisfactory progress in 2016."
(1) before Oman contract termination and liquidation related costs, the S3 programme, amortisation of intangibles arising on acquisitions, impairment charges and adjustments to deferred consideration net of acquisition related costs. IFRS operating profit was £66.4m (2014: £39.5m). See Note 2 for reconciliation.
(2) before Oman contract termination and liquidation related costs, the S3 programme, amortisation of intangibles arising on acquisitions, impairment charges, fair value movements on derivatives, unwinding of discount on provisions, defined benefit pension interest charges and adjustments to contingent consideration net of acquisition related costs and, in the case of underlying earnings per share, before related taxation. Basic EPS 35.7p (2014: 29.8p). See Note 8 for reconciliation.