Ultra gunning for progress after US takes time to pay

British defence firm Ultra Electronics on Monday pledged to make up lost ground this year after US budget approval cleared a logjam of pent-up orders.

Delays by Congress in signing off the spending package hit payments to the aerospace-to-communications group, which makes parts for defence staples like the Black Hawk helicopter.

US lawmakers eventually signed off the Budget in early May, paving the way for Ultra to cash its cheques, but the delay means performance is skewed to the second half. Revenue for the six months ending June was flat at £366.4 million. Pre-tax profit fell to £52.3 million from £53.4 million.

Chief executive Rakesh Sharma remains cautious about promised defence spending increases under the Trump administration. “It’s a complex picture and too complex to say the budget will increase by 5% in 2019,” he said.

An increase in global plane production is expected to keep Ultra busy over the next year. The company bought out a US joint-venture partner Sparton a month ago, and plans to sell Sparton’s manufacturing and design services unit early next year. The race has narrowed to two unknown bidders, a private-equity house and strategic buyers.