Ultra Electronics wins £37m contract with BAE Systems

Michele Maatouk WebFG News | 25 Sep, 2017 12:53 - Updated: 12:53 | | |

ultra electronics
  • 1,279.00
  • 1.51%19.00
  • Max: 1,290.00
  • Min: 1,255.00
  • Volume: 351,152
  • MM 200 : n/a
17:17 13/12/17
  • 3,479.13
  • -0.13%-4.38
  • Max: 3,487.64
  • Min: 3,476.19
  • Volume: 0
  • MM 200 : n/a
17:19 13/12/17
  • 20,061.40
  • -0.06%-11.62
  • Max: 20,105.15
  • Min: 20,023.39
  • Volume: 0
  • MM 200 : n/a
17:19 13/12/17
  • 4,824.60
  • 0.96%45.85
  • Max: 4,836.30
  • Min: 4,748.95
  • Volume: 0
  • MM 200 : n/a
17:19 13/12/17
  • 4,165.37
  • -0.05%-2.21
  • Max: 4,172.97
  • Min: 4,164.26
  • Volume: 0
  • MM 200 : n/a
17:19 13/12/17
  • 4,111.96
  • -0.05%-2.13
  • Max: 4,119.21
  • Min: 4,111.04
  • Volume: 0
  • MM 200 : n/a
17:30 13/12/17
  • 4,583.74
  • -0.06%-2.98
  • Max: 4,591.54
  • Min: 4,573.12
  • Volume: 0
  • MM 200 : n/a
17:19 13/12/17

Ultra Electronics said on Monday that its Staffordshire-based PMES business has won a £37m contract with BAE Systems Maritime-Submarines in relation to a UK naval defence programme.

The contract is for the final development and production of a hybrid electric propulsion system and Ultra will provide the remaining non-recurring engineering and qualification of the system, as well as an initial provision of equipment for the programme.

Chief executive Rakesh Sharma said: "We are pleased by this contract as it showcases our specialist technology which has received company funded R&D for many years and reinforces our position as a leading provider of submarine propulsion technology. We are also pleased to be further developing our relationship with BAE Systems."

The company also said in a separate statement that it and Sparton Corp have received a request for additional information from the US Department of Justice regarding Ultra's pending acquisition of Sparton.

"Ultra and Sparton have been cooperating fully with the DoJ as it conducts its review of the transaction and will continue to do so in connection with the second requests," it said.

The deal, which is expected to complete by 1 January 2018, remains subject to approval by Sparton's shareholders and other approvals, as well as other customary closing conditions. Ultra announced back in July that it had agreed to buy New York-listed -based Sparton - which provides design, development and manufacturing services for complex electromechanical devices - for $23.50 a share in cash, valuing the company's total equity at around $234.8m.

At 1245 BST, the shares were down 0.5% to 1,761.66p.

More news

22:33 Sector movers: Financials pace gains ahead of central bank policy decisions

Cyclicals paced gains on Wednesday, alongside a bounce in food retailers with financials figuring prominently ahead of interest rate decisions from the Federal Reserve on Wednesday evening, as well as the Bank of England and European Central Bank the next day.

21:23 Director dealings: Ashtead's top brass sell at 52-week high

A large swathe of US-focused equipment rental company Ashtead's top brass offloaded a large part of their holdings of stock in the company even as the price hit a 52-week high.

20:37 Europe close: Stocks hit by strong euro, Italian political uncertainty

Stocks sagged as a weaker-than-expected reading on US inflation sent the single currency higher ahead of the US central bank's policy announcement later on Wednesday, with Italian stocks also battered by reports which, analysts said, held out the prospect for political instability in the Eurozone's third-largest economy in 2018.

19:53 Disney close to sealing $60bn deal for Fox and Sky stake - reports

Walt Disney is reportedly set to secure a $60bn deal to buy 21st Century Fox’s entertainment assets, including its 39% stake in UK broadcaster Sky.

19:55 FOMC hikes rates, but Evans and Kashkari dissent

The US central bank went ahead with its third rate hike of 2018, as expected, but two rate-setters dissented, voting instead for no change.

17:40 London close: Stocks flat as traders wait on US Fed

London stocks were little changed on Wednesday as investors digested some mixed UK jobs data and looked ahead to the latest policy announcement from the Federal Reserve.

17:42 US open: Stocks rise ahead of Fed rate decision

Stocks are trading higher ahead of the US central bank's policy announcement later in the day, bolstered by a weaker than expected reading on consumer prices.

17:15 Thursday preview: BoE, ECB, European Council, Bunzl, Ocado, Sports Direct

Thursday is a big day for the Brexit process as the European Council begins its two-day meeting in Brussels, while the Bank of England's and European Central Bank's rate setters are also convening and results are expected from the likes of Bunzl, Cussons, Ocado and Sports Direct.

17:00 Gasoline stockpiles build alongside increased domestic output

US crude oil inventories shrank more quickly than expected last week, albeit a large increase in domestic output and an offsetting large build in gasoline stockpiles.

15:58 Ubisense announces first satellite deployment of 'SmartSpace' platform

Enterprise location intelligence solutions provider Ubisense announced a new contract in the space and satellites sector on Wednesday - the first deployment in that sector for its SmartSpace platform and associated products.