LONDON (dpa-AFX) - Ultra Electronics (ULE.L) reported fiscal 2020 statutory profit before tax of £103.7 million or 118.0p per share compared to £91.0 million or 105.1p per share last year.
Underlying profit before tax increased to £114.5 million or 130.6p per share versus £105.3 million or 119.5p per share in the previous year.
Revenue for the year 2020 amounted to £859.8 million, up 4.2% from the prior year's revenue of £825.4 million.
Simon Pryce, Chief Executive, said, '2020 was a year which demonstrated the underlying strength of Ultra, and the capabilities and dedication of our outstanding people... We enter 2021 with a record order book giving us strong visibility, and we remain well positioned in key growth areas to support customers' evolving priorities. We continue to increase our technology investment, expanding the areas in which we can provide effective customer solutions...'
Looking ahead, the company expects operating margins to reduce in 2021, as it plans to accelerate its transformation investments to £11 million - £13 million, with increased investment in process efficiency, procurement category management and two major site consolidations. Also, the company intends to further increase internal R&D to between 3.8% and 4% of revenue in 2021.
Further, the company expects capital expenditure to increase to around £35 million in 2021.
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