Ultra, the defence group with operations in Birmingham and Staffordshire, has said its second-half figures will improve, after recording a fall in both revenues and profits during the first six months.

Revenues declined by 7.3% to £341 million (£367.7 million for the first half of 2013) and underlying pre-tax profits dropped 8.5% to £53 million (2013: £57.9 million).

Chief executive Rakesh Sharma said: “The interim results are in line with the group’s expectations. As indicated in March, Ultra’s 2014 performance will be weighted towards the second half, principally reflecting constraints in the US defence procurement process at the start of the period. 

“The group has seen the positive effects of increasing stability in the US and UK defence markets, as evidenced by increased order placement towards the end of the first half. The security, transport and nuclear-energy markets remain stable, with good trading in the period.” 

Mr Sharma added: “In addition to the four businesses acquired in the period, R&D investment in new products and business development has been maintained. Encouraging progress has been made across a number of projects such as the successful US army field trials of Ultra’s ground-breaking Orion radio.

“Subject to no further currency fluctuations, the board is confident that this positioning will support performance in the second half and will enable expectations to be broadly met for the full year.”