Secondary Recommendation

Ultra Electronics - Huge reduction in net debt

October 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Fears that Ultra would suffer from cuts in defence spending have proved wide of the mark with strong results sending the shares to a new high of 1739p, more than Â£4 ahead of our recommendation price of 1316p last January. For the six months to 2 July turnover rose 8% to Â£351m while pretax profit increased 18% to Â£47.6m. Strong cash generation reduced its net debt sharply from Â£68m to just Â£17m. The power behind these results was Tactical & Sonar Systems, where operating profit rose 26% to Â£27.5m. This side is involved in areas such as anti-submarine warfare systems, torpedo defence and mine disposal systems but the main growth driver is so-called battlespace IT products, such as tactical surveillance and com ...

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Enquest

Ultra Electronics (October 2012)

Ultra Electronics - Goldman Sachs has Â£22 price target (May 2012)

Ultra Electronics - Eps enhancing acquisition (February 2012)

Ultra Electronics - Goldmans have 1790p price target (October 2011)

Ultra Electronics - Swings into net cash (May 2011)

Ultra Electronics -Reassures on US, UK defence budgets (June 2010)

Ultra Electronics -Shares above Â£15 for first time (April 2010)

Ultra Electronics - Defence electronics firm boasts fabulous 13 year record (January 2010)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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