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COE Fired and profits warning

lse:ule

#1

Seems the SP fall correctly anticipated some bad news released in an after-hours announcement…

CEO fired and earnings downgrade, underlying operating profit of £120m compared with market forecasts of £147m and that organic revenue would decline by about 4pc

Warning about the trading conditions, Ultra ? which derives most of its revenue in the US ? said that ?while the majority of markets have been satisfactory, the UK market has been difficult and has become increasingly so in the second half".

?There are mounting pressures in the funding of UK defence programmes and this has resulted in the UK MoD pausing, cancelling or delaying numerous programmes. Within the last few weeks a number of our UK orders budgeted for 2017 have been affected.?

The company also said it expected its $234m (£178m) acquisition of a US rival to be delayed. It is understood that this is due to US Department of Justice officials being swamped with work and is unrelated to Mr Sharma?s leadership.

The news saw Ultra?s shares fall more than 11pc to £15.27 today.

Not clear how much of this was known during Friday tradings and how widely, would not be surprised if the fall continues on Monday

H2