FTSE 250 defence specialist Ultra Electronics (LON:ULE) said that group performance for the first half of the year has been broadly in line with market expectations, but warned about continued cost overruns at its US-based Herley subsidiary. While management said that they expected there to be some recovery from this during the second half of the financial year, they warned that Herley’s difficulties would negatively impact group operating profits by £4-6 million.
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New CEO Simon Pryce said that: “Whilst individual programme problems clearly detract from an otherwise broadly satisfactory first half, the team are focussed on addressing operational, programme and customer issues whilst continuing to win new business“. Shares in Ultra Electronics fell by 4.44% to 1,549p (at 11:20 BST).