Half Year Results 

Ultra Electronics silences doubters

Ultra Electronics silences doubters

Working capital has been a major bugbear at Ultra Electronics (ULE) since the new chief executive flagged it as a problem last year. The bid to optimise working capital is reflected in an increase in 12-month average working capital turn, achieved through a reduction in trade payables (the money the company owes to suppliers) combined with a slight increase in receivables (the money owed by customers). This aided cash generation but, given the underlying operating cash conversion rate stands at 25 per cent (up from 14 per cent in 2018), a little more discipline is probably required. 

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