vb6
11 Jan 2018
Reuters Jan 11 (Reuters) – British defence contractor Ultra Electronics , which has warned of lower defence orders in the country, said on Thursday it had significant exposure to a rising U.S. defence budget, and had seen growing demand for advanced technologies.The company, which makes military electronics for land, air and sea operations, also said it expects to have modest progress in 2018 underlying revenue and operating profit on a constant currency basis. ...Shares of Ultra Electronice were up 13 percent at 1428 pence in early trading, making it the biggest percentage gainer on the FTSE Midcap Index Ultra Electronics said it had begun the new year with an order cover on expected revenue of about 62 percent, higher than about 56 percent in 2017."The board is confident that Ultra has sustainable operating trading momentum with a significant number of recent long-term contract wins," said Douglas Caster, Executive Chairman.The company said order intake for the year ended Dec. 31, 2017 was about 900 million pounds ($1.21 billion), adding it would recommend a final dividend of 35 pence per share.The company said the search for a new chief executive was underway, after its last CEO quit in November as Britain's government scaled back business with the defence contractor. ...Funding pressure on the Ministry of Defence has forced it to pause, cancel or delay several programmes and "within the last few weeks a number of our UK orders budgeted for 2017 have been affected," Ultra Electronics said in November.Ultra Electronics' new chief will be looking to tap U.S. President Donald Trump's promised $700 billion in defence spending. The U.S. accounts for 50 percent of the company's revenue, while UK accounts for 24 percent.
Hardboy
11 Jan 2018
I hadn't expected this after the November statement, but you can never got too many trading updates! And it says things are in line with the November statement, but there is a little more detail given. Incoming orders have been strong with £900m in v sales of £770m, so we have an increased order book at year end.They are raising the dividend, albeit modestly, and companies facing Armageddon don't do that, so it shows confidence that this UK blip is likely to be a short term blip only. Operating profit this year will be just under £120m. last year it was just under £90m, so a 33% rise. That's not bad is it? Admittedly the number of shares has increased, but only by 10%. So last year's EPS was around 83. A 33% increase in earnings and a 10% increase in shares would give us an EPS around 100 - a PE of 12.5. Full year dividend is likely to be 49.62018 is likely to show modest improvement on 2017 (although it's early stages.) So I think a business growing modestly with a good international coverage & a PE around 12.5 & yield of nearly 4% merits a weak buy recommendation.
Hardboy
09 Jan 2018
Tax help Over 40% of their business is in North America. Presumably the US tax changes should be an assistance.
gamesinvestor
05 Jan 2018
Re: Big Drop " Use the same factor each year. "Or they could apply the same formula to that of the rest of the public sector. In that way they might actually build some trust instead of ranking one level below an estate agent.Games -- I love estate agent's really, honest I do !!
Hardboy
05 Jan 2018
Re: Big Drop "the pay review body for the MP's independent and watch as they give them a massive pay rise."I don't see why we have to pay for this very expensive independent review of MPs salaries every year or whatever it is. It would be a lot simpler if they applied a set factor to average earnings which HMRC could produce easily enough. Use the same factor each year. Multiply average earnings by the factor - that's the MPs salary. If the MPs do a good job of running the economy average earnings would go up, so would the MPs salaries - fair and simple. And if we really wanted to see MPs fight for the people they represent than each MP's salary would be pegged to the average earnings of their constituents!
gamesinvestor
05 Jan 2018
Re: Big Drop "but be reassured they are concentrating on important things like putting the cost of a cup of coffee up 5p."HB -- correct, and they are doing nothing about business rates which fleeces most premises based businesses . They are also doing nothing about building houses for the public sector - 55,000 in 2010 and 5800 in 2016 -- they just don't give a monkey's.They are happy to call the pay review body for the MP's independent and watch as they give them a massive pay rise.I sound like a socialist all of a sudden -- not so but the Tory lot don't inspire confidence.I think they might get wiped out at the next election.Games -- then we are really in the mire.
Hardboy
05 Jan 2018
Re: Big Drop Well found Games, but this is nothing new - it is exactly the reason for the profit warning in November. This Government is dithering on all major things - like defence budgets or Fox's take over of Sky - but be reassured they are concentrating on important things like putting the cost of a cup of coffee up 5p.
Hydrogen Economy
05 Jan 2018
Re: Big Drop Could be SP Target cut by Berenberg Berenberg today reaffirms its sell investment rating on Ultra Electronics Holdings PLC (LON:ULE) and cut its price target to 1300p (from 1550p).
gamesinvestor
05 Jan 2018
Re: Big Drop [link] defence reviewGames
vb6
05 Jan 2018
Re: Big Drop Can't see anything on the web site.And it was all going so well since the November blip.Let's hope it's just one institution rebalancing. Yours Rug Pulled from Undervb6
Butterflybill
05 Jan 2018
Re: Big Drop Don't know either but look at the volume!Bought these 6 months ago after press recommendation. BIG MISTAKE!BB
Hardboy
05 Jan 2018
Big Drop Does anyone know why the big drop today?No company news.I did note "defence" companies like BAE & Rolls Royce were 2 of the largest drops on the FTSE100, but not seen any obvious reasons.
vb6
22 Dec 2017
Re: On the Move Still moving. Hurrah for Mr Caster.Plus a juicy 3.5% divi if you get in a these prices.Yours Feeling a Strong MovementHappy Christmas vb6
vb6
28 Nov 2017
Re: On the Move Hang on or add.IMHODYORvb6
Gunnergadin
28 Nov 2017
Re: On the Move Are you saying sell while it's climbed recently, or hang on for the recovery?
