Defence engineering firm Ultra Electronics jumped 9.7 per cent today after it hiked its interim dividend.
The FTSE 250 company enjoyed growing profit, revenue and orders in a “solid” first six months of the year.
In the first half of 2019, pre-tax profit rose to £37.9m, almost doubling from £20m the same time last year.
Revenue rose one-tenth to £387.1m, while net debt was roughly flat at £171m.
Why it’s interesting
Ultra Electronics, which gets a large proportion of its revenue from the US defence market has started to reap the benefit of a 13 per cent increase in spending on the sector by the US government in the last two years.
The firm said its major markets continue to grow, while its position in the technology market “positions us well to meet our customers’ needs”.
The company supplies high-tech electronic components and systems for markets including aerospace, defence, energy and transport
What Ultra Electronics said
Chief executive Simon Pryce said: “We have positive momentum into the second half and remain confident that 2019 will be a year of good progress for Ultra.”
“Importantly, we have won good positions on a number of key new programmes which have significant long term potential.”
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