Ultra Electronics PLC (LON:ULE) shares rose 2.4% on Monday after the defence technology group announced an increase in its order book, largely due to an uptick in defence spending by the US military, and a significant contract win with the US air force.
The FTSE 250-listed group, which pulled out of plans to merge with rival Sparton earlier this year, said its order book grew to £969mln from £808mln a year earlier due to higher naval and air force spending, particularly by America’s Trump administration.
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The company also sealed a £30mln contract to supply engine ice protection and air compressing systems for the US military’s F-35 fighter jets.
Ultra reported mixed first-half results, with revenue and operating profit both dipping. However, the board held the interim dividend at 14.6p per share and is confident about its future growth prospects.
“We enter the second half with a strong order book and remain focused on execution and delivery while continuing to win new business. The Group is well positioned in areas of priority spend with significant exposure to the strengthening US defence budget,” Simon Pryce, Ultra’s CEO said.