BAE Systems was recently awarded the prime contractorship on the 2.7bn
contract. As major sub-contractor, Thales should pick-up one third of the
work. The CVF vessels will be the largest vessels ever to serve with the Royal
Navy. Thales estimates the value of on-board electronics systems will be around 500m i.e. 19% of the total contract value. The value of electrics (power systems, cabling etc) systems will be above and beyond that value. As a percentage of the overall budget, this confirms recent projections that electronics systems are capturing an increasing proportion of defence spending.

US spending on defence electronics is forecast to grow at a CAGR of 9.6% over the next two years, 6.5% over the next five years and at a long-term CAGR of 5.7% through to 2012. Thales says it intends to spend all of the 500m electronics budget in the UK. How much of this budget will go to Racal (now part of Thales) is unconfirmed. However, this contract would be a significant opportunity for Ultra.

Ultra is a specialist supplier of electronics systems to the defence sector
(accounting for 77% of revenue), with key strengths in the naval electronics
market. Ultra’s strong track record of design success on the Royal Navy’s
Type 45 Destroyer and Type 23 Frigate puts them in pole position to win
contracts on the two carriers. Ultra could win up to 25m orders
over the next 18 - 24 months.

Nope. Nice though ;o)
A longtime pep favourite holding of mine

Hi, this is taken from the Blue Index blog

Ultra High Enough
April 24th, 2009

Traders and investors seeking a defence and aerospace share with fine defensive qualities in more ways than one, one could do a lot worse than Ultra Electronics (ULE). The company designs, manufactures and supports electronic and electromechanical systems, sub-systems and products for defence, security and aerospace applications around the world

This morning the group reported trading for the year to date was in line with expectations, and said its broad portfolio and spread of specialist market positions were underpinning group performance. Ultra has a forward order book of GBP800m and says it has its customary level of visibility looking forward, plus the board are confident of continued good progress in 2009. The group have also benefitted from the current exchange rates for US and Canadian dollars against sterling, and if these are sustained, they will benefit group results compared to 2008 through a favourable currency translation effect.

Full transcript here
http://blog.blueindex.co.uk/2009/04/ultra-high-enough/