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Trading Statement

lse:ule

#1

www.ultra-electronics.com/media/press-releases/trading-statement-nov-2017.aspx

35p divi proposed


#2

I read this morning’s trading statement before checking this discussion board; and was about to post something along the lines of “After Friday’s collapse all we need is a profit warning the next trading day.”

But it seems much of the bad news released this morning may have been known about on Friday; and may have been the main cause for the drop in sp. That is more logical that the delay in the Sparton deal. However the release of an official profit warning usually only has one effect on the share price, so I expect to see it topping the fallers leader board again today.

Having said that, looking at the figures quoted today, they are not all bad. The predicted Operating Profit still seems to be the best at least since the Financial Crisis. The full year turnover will only be a bit behind last year’s. The order book is up 20%. And the Final Dividend is likely to show a small increase. Companies do not increase dividends if they expect continuing pressure on profits.

The sudden departure of the top man is worrying, although it sounds like board level strategy discussions have been going on for a while and he was (Presumably) getting increasingly isolated. They eventually concluded he had to go & he decided he did not want to hang around to manage the transition, so maybe it is not a bad thing.

Watch this space.