Ul­tra chief steps down as shares slump

Yorkshire Post - Business - - CAPITAL MARKETS -

SHARES IN Ul­tra Elec­tron­ics tanked af­ter the de­fence firm warned over prof­its and its chief ex­ec­u­tive stepped down.

The FTSE 250 firm said it was search­ing for a new top boss, with CEO Rakesh Sharma de­part­ing and chair­man Dou­glas Caster be­com­ing the group’s ex­ec­u­tive chair­man.

In a dou­ble an­nounce­ment, the com­pany said an­nual rev­enues would come in at £770m and un­der­ly­ing op­er­at­ing profit at £120m, with con­sen­sus pre­vi­ously point­ing to fig­ures of £807m and £132m re­spec­tively.

Ul­tra blamed the move on the Min­istry of De­fence (MoD) “paus­ing, can­celling or de­lay­ing numer­ous pro­grammes”, which had hit com­pany or­ders.

Up­dat­ing the mar­ket, the de­fence-to-en­ergy firm said: “The ma­jor­ity of the group’s mar­kets have been sat­is­fac­tory; how­ever, the UK mar­ket has been dif­fi­cult and has be­come in­creas­ingly so in the sec­ond half.

“There are mount­ing pres­sures in the fund­ing of UK de­fence pro­grammes and this has re­sulted in the UK MoD paus­ing, can­celling or de­lay­ing numer­ous pro­grammes.

“Within the last few weeks a num­ber of our UK or­ders bud­geted for 2017 have been af­fected.”

On a brighter note, the com­pany said its 2018 or­der book on a con­stant cur­rency ba­sis was 20 per cent higher at the end of Oc­to­ber com­pared with last year.

Mr Caster said Mr Sharma has “con­trib­uted sig­nif­i­cantly” to the group’s de­vel­op­ment.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.