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Ultra Electronics Holdings reports better than expected operating margins
StockMarketWire.com
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Ultra Electronics Holdings has reported its operating margins are slightly better than expected due to lower indirect costs related to the Covid-19 pandemic and robust core defence markets.
In a trading update on its performance over the nine months to 30 September 2020, the company said order intake remains strong with good revenue growth, as anticipated. These costs are expected to normalise in 2021, alongside further investment in the business, as previously communicated.
Despite the ongoing Covid pandemic, trading continues as expected, and all facilities remain open and productive, with no significant disruption to demand or operational performance. Cash conversion has benefited from strong advance payments, and reduced capex due to Covid related deferral of site investments, expensing design elements of its transformation and revising its ERP strategy.
It will continue to closely monitor the Covid situation and while it expects the challenging conditions in commercial aerospace to continue into 2021, it remains confident in Ultra's ability to deliver exceptional value for its stakeholders. The preliminary results for the year ending 31 December 2020 will be released on 9 March 2021.
Story provided by StockMarketWire.com
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