Ultra Electronics PLC (LON:ULE) reported an improved order book in the first quarter but warned that it expects to make modest progress in revenue and profit in 2018.
In a trading update on Friday, the group said a higher volume of orders in the first quarter resulted in an increased order book of £933mln at the end of March 2018 compared to £914mln at the start of the year, despite foreign exchange headwinds.
However, the company expects to make modest progress in underlying revenue and operating profit at constant currencies in 2018 after investing in research and development and capital expenditure.
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Ultra said: “As guided, the group’s trading and cash performance will be more heavily weighted to the second half of the year.”
The British defence contractor said a continuing resolution to US Federal funding was in place for most of the quarter of the year until the US budget was signed on 23 March 2018, while conditions in its markets remained the same since its March 5 update.
Ultra added that as part of a share buyback, announced on March 5, it has purchased for cancellation 2,963,676 shares at a total cost of £41.1mln as of April 24.
In morning trading, company’s shares rose 0.9% to 1,418.0p.