(Alliance News) - Ultra Electronics Holdings PLC on Monday expressed confidence in its business amid challenging conditions arising from the Covid-19 pandemic.
The FTSE 250-listed aerospace and defence engineering company said trading has continued as expected, noting that all its facilities have remained open with no significant disruption to operations or demand.
Ultra Electronic highlighted "strong" order intake and good revenue growth. It added operating margins are slightly better than expected due to lower indirect costs related to the pandemic. Reduced capital expenditure due to Covid related deferral of site investments as well as strong advance payments also have contributed positively to cash conversion.
Looking ahead, the company said: "Whilst we expect the challenging conditions in commercial aerospace to continue into 2021, our core defence markets are robust, and we remain confident in Ultra's ability to deliver exceptional value for all our stakeholders."
Financial results for 2020 will be released on March 9.
Shares in Ultra Electronics were trading 0.2% lower at 2,052.00 pence each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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