1 / 19

Interim Results for the six months to 30 June 2004

Interim Results for the six months to 30 June 2004. Interim 2004 Overview. Another strong first half sales up 8% – EPS* up 12% PBT* up 13% – order book up 7% Margins strengthened despite currency effects Sonobuoy businesses performed well Reduced deliveries of Eurofighter equipment

Download Presentation

Interim Results for the six months to 30 June 2004

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Interim Results for the six months to30 June 2004

  2. Interim 2004 Overview • Another strong first half • sales up 8% – EPS* up 12% • PBT* up 13% – order book up 7% • Margins strengthened despite currency effects • Sonobuoy businesses performed well • Reduced deliveries of Eurofighter equipment • Excellent growth in Information & Power Systems • Good contribution from 2003 acquisitions • DNE Technologies and Videcom acquired since period-end I N N O V A T I O N T H R O U G H E X P E R I E N C E

  3. Profit & Loss Account *before goodwill amortisation I N N O V A T I O N T H R O U G H E X P E R I E N C E

  4. Interim 2004 Overview Other civil 13% Sonar 24% Civil aircraft equipment 7% Other defence 13% Battlespace IT 30% Military aircraft equipment 13% 2003 H1 sales£135.7m I N N O V A T I O N T H R O U G H E X P E R I E N C E

  5. Interim 2004 Overview Other civil 14% Other civil 13% Sonar 24% Sonar 28% Civil aircraft equipment 7% Civil aircraftequipment 7% Other defence 13% Other defence 14% Battlespace IT 30% Battlespace IT 27% Military aircraftequipment 10% Military aircraft equipment 13% 2003 H1 sales£135.7m 2004 H1 sales£146.5m I N N O V A T I O N T H R O U G H E X P E R I E N C E

  6. Cash Flow *before goodwill amortisation I N N O V A T I O N T H R O U G H E X P E R I E N C E

  7. The Market Environment • US defence • continuing growth with emphasis on electronics and communications • UK defence • fewer platforms in service • some existing platforms to be upgraded • growth focused on mobility and battlespace IT • Homeland security • increased priority worldwide • demand for coastal and border surveillance systems • Transportation • aircraft build rates increasing for ’04 and ’05 • rail and airport infrastructure investment continuing I N N O V A T I O N T H R O U G H E X P E R I E N C E

  8. Tactical & Sonar SystemsOPERATIONAL REVIEW Sales £57.6m (+8%) Profit* £6.6m (+22%) Order Book £192.0m (=) • Growth driven by high ASW sales • SSTD programme on track - successful trials completed • Nimrod MRA4 deliveries completing • Next tranches of radio orders received from US andRepublic of Korea • Cryptographic equipment order received from US DoD • Acquisition of DNE Technologies completed since period-end *operating profit before goodwill amortisation I N N O V A T I O N T H R O U G H E X P E R I E N C E

  9. Tactical & Sonar SystemsDNE TECHNOLOGIES Sales* $28.4m Profit* $5.8m • Key supplier of communication solutions for military network access • Provides connectivity between variousmilitary network standards • Supplier to US Army, Navy, Marines andAir Force • Complementary to APC and TCS • Differentiated solutions reflected in marginsachieved *year ended 31 December 2003 I N N O V A T I O N T H R O U G H E X P E R I E N C E

  10. Tactical & Sonar SystemsDRIVERS OF GROWTH • Increasing demand for timely information • Improved battlespace intelligence • Interoperability between allied and coalition forces • Protection for naval assets in shallow waters • enhanced ASW techniques • protection against torpedo attack • mine countermeasures I N N O V A T I O N T H R O U G H E X P E R I E N C E

  11. Tactical & Sonar SystemsULTRA OPPORTUNITIES Watchkeeper equipment 2004 £10m Increased bandwidth radios for Korea 2006 £15m+ Sonobuoy partnering agreement 2004 £30m+ Multi-Static Active ASW system 2006 £20m Boeing MMA sonobuoy receivers 2005 £10m+ UK naval mine destruction system 2005 £20m+ US and export torpedo defence systems 2005 £10m+ I N N O V A T I O N T H R O U G H E X P E R I E N C E

  12. Aircraft & Vehicle SystemsOPERATIONAL REVIEW Sales £36.7m (-10%) Profit* £6.6m (-7%) Order Book £81.8m (+2%) • Sales impacted by alignment to Eurofighter programme • Armoured vehicle electronics activity increasing • Award of HiPPAG Small Diameter Bomb development contract • Selected for Boeing 7E7 proximity sensor electronics • Ten year sole source agreement for Airbus landing gear controls *operating profit before goodwill amortisation I N N O V A T I O N T H R O U G H E X P E R I E N C E

  13. Aircraft & Vehicle SystemsDRIVERS OF GROWTH • New military aircraft build rates increasing • Enhanced capability for existing platforms • Smart munitions • improved weapons ejection systems • More mobile forces • light armoured vehicles • UAVs and UCAVs • Recovery of long term civil aerospace growth • position on Boeing 7E7 • protected position with Airbus I N N O V A T I O N T H R O U G H E X P E R I E N C E

  14. Aircraft & Vehicle SystemsULTRA OPPORTUNITIES Eurofighter tranche 2 2005/6 £40m HiPPAG for JSF 2007 £60m+ HiPPAG for Small Diameter Bomb 2005 £15m+ C130 noise cancellation 2006 £10m FRES armoured vehicle 2007 £10m+ Boeing 7E7 proximity sensors 2006 £20m I N N O V A T I O N T H R O U G H E X P E R I E N C E

  15. Information & Power SystemsOPERATIONAL REVIEW Sales £52.2m (+25%) Profit* £6.1m (+27%) Order Book £111.2m (+28%) • Strong performance driven by transport infrastructure investment • Increased deliveries of Bowman related equipment • Acquisition of Videcom announced since period-end • Good market acceptance for new ID card printers • Selected for export coastal surveillance system *operating profit before goodwill amortisation I N N O V A T I O N T H R O U G H E X P E R I E N C E

  16. Information & Power SystemsDRIVERS OF GROWTH • Submarine equipment upgrades • Power requirements for naval systems • Port and coastal surveillance • Demand for enhanced command and control • Transit system power equipment I N N O V A T I O N T H R O U G H E X P E R I E N C E

  17. Information & Power SystemsULTRA OPPORTUNITIES Rolls-Royce reactor control 2004 £20m 2nd batch Astute submarine 2006/7 £10m+ UK aircraft carrier equipment CV (F) 2007 £15m+ US ADSI sustainment 2004 £15m Export coastal defence system 2005 £5m+ Network Rail power equipment 2004/5 £10m+ I N N O V A T I O N T H R O U G H E X P E R I E N C E

  18. Ultra Group Prospects • Order book gives good visibility • Programmes running on schedule • Growth augmented by DNE Technologies and Videcom • Positioned in expanding markets • Headroom for further acquisitions • Well placed for 2004 despite exchange rate impact • Ultra’s growth to continue I N N O V A T I O N T H R O U G H E X P E R I E N C E

More Related