Defence supplier Ultra Electronics (www.ultra-electronics.com), with sites in Rugeley and Birmingham, believes that its 2017 performance is likely to be weighed towards the second half of the year, after it revealed a flat set of interim results.

In the six months to 30 June, the group recorded revenues of £366.4 million (down from £366.6 million a year earlier).

It said that the disposal of its ID business in August 2016 reduced its revenues by 2.7%; other factors included delays in the award of a number of contracts and the higher level of engineering activity compared to last year.

These factors were offset by exchange rate movements, which improved revenues by 9.3%.

Chief executive Rakesh Sharma said: “Market conditions remain largely unchanged since our preliminary announcement in March. The US Federal budget was not approved until May; together with the UK General Election, this affected the progress of some contract awards.

“Nevertheless, following the strong order intake in the final part of the period, which has continued through July, we are pleased with our current order position.”

Ultra’s order book is up 2.8% at £807.5 million for its defence systems (ranging from anti-submarine equipment to electronic warfare). In July, the company won a £180 million contract from the US-based Sparton Group.

Mr Sharma added: “We expect the momentum in contract awards to continue, as the year progresses. Furthermore, some additional export opportunities are edging closer to being secured.”