Ultra Electronics profit rises as order book strong

LONDON (Reuters) - Defence company Ultra Electronics (ULE.L) posted a 16 percent rise in first-half profit on Monday and said an order book of 645 million pounds underpinned its confidence in the future.

The company, best known for making sonar buoys dropped into the water to detect submarines, said it made profit before tax and amortisation of 30.4 million pounds in the six months to June 30.

Ultra said its defence businesses were benefiting from high levels of international tension, while rising demand for new aircraft was boosting its civil operations.

"Within Ultra's overall order book ... firm order coverage for the next twelve months' trading for the group has been maintained at its traditional level of over 60 percent, thereby giving good visibility of future earnings," it said in a statement.

The order book was up 12.2 percent on the same period last year.

First-half revenue rose 20.2 percent to 231.9 million pounds, led by a 30.8 percent increase at its tactical and sonar systems business.

Ultra said it would pay an interim dividend of 8 pence a share, up 19 percent on the same time last year.

Its shares have outperformed the UK aerospace and defence index .FTASX2710 by 19 percent this year. They closed at 1,314 pence on Friday, valuing the group at about 894 million pounds.

(Reporting by Mark Potter; Editing by Sue Thomas and David Holmes)