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Shares in FTSE 250 defence specialist Ultra Electronics (LON:ULE) climbed by 2.49% to 1,732p (as of 10:30 BST) despite revenues for the first half of 2018 dropping by 4.3% relative to the same period of the prior year. Management ascribed the majority of this decline to adverse currency movements and said that the underlying sales were up by 1.3%.
The company also said that its order book at the end of the period was £969.2 million, representing 19% organic growth over the same period of the prior year, helped by newly increased levels of US defence spending. The board said that they were entering the second half of 2018 in a strong position that is well exposed to American spending and maintained their guidance for the full year.
Chairman Douglas Caster commented that: “The majority of Ultra’s operations have had better than expected order intake during the period reflecting an improvement in our major market. As previously disclosed, cost overruns on specific development contracts impacted the reported results, however the Group as a whole performed broadly in line with management expectations“.