Defence specialist Ultra Electronic Holdings yesterday posted an 18 per cent rise in annual underlying profits - boosted by sales of battle and airport information systems.
The group, which has a major facility at Rugeley in Staffordshire, said pretax profits for the year to December 31 climbed from £40.1 million to £47.4 million.
Operating profits rose from £43.3 million to £51.1 million.
Turnover - buoyed by £36.6 million worth of acquisitions - rose ten per cent, from £310.7 million to £342.4 million.
Ultra, which makes surveillance systems used at airports, on aircraft, ships, submarines and armoured vehicles, saw its order book increased by 27 per cent over the year to £501 million.
The company raised its final dividend by 16 per cent to 10.7 pence a share, bring-ing its payout for the year to 15.9 pence, up from 13.8 pence last time.
At the same time the group announced it has won a contract from Pratt & Whitney worth an initial £12 million to provide parts of the engine ice protection systems for Lockheed Martin's Joint Strike Fighter.
Ultra said its profits were boosted by a strong performance in its operations for IT used in a battle environment, at airports, and in torpedo countermeasure systems. The group said it also benefited from a part year contribution from acquisitions made in 2005 and a full year contribution from those made in the previous year.
"The group is positioned in high growth market sectors worldwide," said chief executive Douglas Caster.
"With Ultra's proven ability to win new business and to execute contracts effectively, the board has confidence in continuing progress of the in 2006."
Turning to the Pratt & Whitney contract he added: "Ultra has been able to secure this position on the JSF programme, in collaboration with GKN, through our innovation and responsiveness.
"We are very pleased with this win as the planned number of JSF aircraft makes this a substantial opportunity for Ultra.
"This success uses the technology that we are developing for the advanced ice protection system for the Boeing 787 aircraft which is due to enter service in 2008."
Mr Caster said demand for the firm's ADSI air defence system had been particularly strong, boosted by demand from the US military.
"ADSI is selling like hot cakes; the US army has been putting it into Humvees.
"They use it in Iraq to give guys on the ground a picture of what is going on in the air so they can call up air support and equally so they can make themselves known so their own aircraft don't shoot them."
Mr Caster said the firm will continue to be on the lookout for potential acquisitions. "I can honestly say there is nothing on the radar at the minute, but things can change very quickly. I probably look at one opportunity a week," he said.
"The trouble is, if something came along in civil aerospace you'd end up paying full price." Shares closed down 31/2p at 1021p.