Ultra lifted by US spending spree

AEROSPACE and defence technology group Ultra Electronics' sales grew by 9.3% to £125.6m in the six months to 30 June on the back of a defence spending spree in the US.

The group's civilian aerospace business - which includes spare parts manufacture, repairs and airport IT systems - was hit hard by last year's terrorist attacks. However, it won a £30m, seven-year contract in February from airports operator BAA to install IT at Heathrow's new Terminal 5.

Chief executive Dr Julian Blogh said: 'Civil aerospace activity accounts for around only 15% of our sales. The main reason we've weathered the storm is increased military spending in the US.' Blogh said present uncertainties over Britain's commitment to the Eurofighter will not hurt Ultra in the short term.