Half Yearly Report

Embargoed until 0700 1 August 2011

Ultra Electronics Holdings plc

("Ultra" or "the Group")

Interim Results for the six months to 1 July 2011

FINANCIAL HIGHLIGHTS

(1) before cost of acquisitions and amortisation of intangibles arising on acquisition. IFRS profit from operations £44.0m (2010: £41.0m). See Note 4 for reconciliation.

(2) before cost of acquisitions, amortisation of intangibles arising on acquisition and fair value movements on derivatives. Basic EPS 46.4p (2010: 38.0p). See Note 4 for reconciliation.

·; Resilient performance reflecting the Group's broad portfolio and customer base

- organic revenue growth at constant currencies of 1%

- organic growth* of headline operating profit, at constant currencies, of 11%

·; Continuing reinvestment to drive future growth

·; Headline operating margin(1) increased to 16.2%

·; Robust balance sheet

- net debt of £10m

- headroom for further acquisitions

·; Record order book exceeds £1bn

- includes the £207m Oman airport systems integration contract

·; Interim dividend per share increased 10%

Rakesh Sharma, Chief Executive, commented:

"The results for the period reflect the success of Ultra's strategies to underpin sustainable, long-term growth of shareholder value. Even in a year of difficult market conditions, Ultra continues to reinvest in its portfolio of differentiated products and services. These are positioned on a large number of international platforms and programmes in the defence, security, transport and energy markets. This broad range of positions maintains the momentum of Ultra's performance, despite market fluctuations.

Ultra has a broad customer base worldwide, with international sales now representing about three quarters of Group revenue. Ultra's activities in civil markets have significant potential for growth, as evidenced by the recent win in Oman for airport systems integration. For different reasons Ultra's main defence markets in the US and UK have experienced spending constraints that have deferred order intake. Despite this the Group has achieved underlying organic revenue growth although this has been at a lower rate than in recent years. In the same period the Group's operating margin has improved. Ultra's strategies for growth provide the Group with a resilient business model that underpins its performance in 2011 and beyond."

INTERIM MANAGEMENT REPORT

This Interim Management Report ("IMR") has been prepared solely to provide additional information to enable shareholders to assess Ultra's strategies and the potential for those strategies to be fulfilled. It should not be relied upon by any other party or for any other purpose.

This IMR contains certain forward-looking statements. Such statements are made by the Directors in good faith based on the information available to them at the time of their approval of this report, and they should be treated with caution due to the inherent uncertainties underlying such forward-looking information.

This IMR has been prepared for the Group as a whole and therefore gives greatest emphasis to those matters which are significant to Ultra when viewed as a complete entity.

FINANCIAL RESULTS

Notes

1 revenue reduced through accounting for the Group's main activities in the UAE as an associated undertaking*

operating cash flow* is cash generated by operations, less net capital expenditure, R&D and LTIP share purchases.

operating cash conversion* is cash generated by operations, less net capital expenditure, R&D and LTIP share purchases as % of profit from operations before the costs of acquisitions and amortisation of intangibles arising on acquisition.

net debt* comprises bank overdrafts and loans less cash and cash equivalents.

finance charges* exclude fair value movements on derivatives.

organic growth* (of revenue or profit) is the annual rate of increase in revenue or profit that was achieved, assuming that acquisitions made during the prior year were only included for the same proportion of the current year.

associated undertaking*: Dascam's major activities became part of Al Shaheen, a joint-venture of which Ultra owns 49%. The enlarged Al Shaheen has been reported as an 'associated undertaking' with effect from 1 August 2010.

Revenue in the period was £343.5m (2010: £350.9m). Revenue was reduced by 3.4% due to exchange rate movements and, as previously advised, by £12.2m, equivalent to 3.5%, through accounting for the Group's main activities in the UAE as an associated undertaking*. Acquisitions added 3.8% to revenue while organic growth at constant currencies was 1.0%.

In the period Ultra maintained its internal reinvestment in the development of new business and products above 5% of revenue at £18.7m (2010: £17.7m).

Headline operating profit increased 8.6% to £55.8m (2010: £51.4m). Acquisitions contributed 3.1% while exchange rate translation reduced operating profit by 5.1%, resulting in underlying growth of 10.6%. The headline operating margin increased to 16.2% (2010: 14.6%) and would have been 15.7% were it not for accounting for the activities in the UAE as an associated undertaking*.

Headline profit before tax increased by 9.5% to £52.1m (2010: £47.6m), after net financing charges* of £3.7m (2010: £3.8m).

The Group's headline tax rate in the period was 28.0% (2010: 28.0%) and the increase in headline earnings per share was 9.2% at 54.6p (2010: 50.0p).

Reported profit before tax was £43.9m (2010: £35.7m). Ultra's IFRS profit before tax reflected the combined effects of the elements detailed below:

The Group's balance sheet remains strong, with net debt of just £10.1m and with net interest payable on borrowings covered 21 times by headline operating profit. Operating cash flow in the period was £37.6m (2010: £40.3m), after the increased deficit-reduction payments for the UK pension scheme and reflecting the very strong cash conversion in the second half of 2010. Ultra had net debt* at the end of the period of £10.1m (2010: net debt of £17.4m).

The proposed interim dividend is 11.7p, an increase of 10%, which will be paid on 23 September 2011 to shareholders on the register on 19 August 2011.

The order book at the end of the period increased by 26% to £1,032.5m compared to £817.9m (£815.3m at constant currencies) at the end of 2010. This included the £207m contract for airport systems integration at two airports in Oman that was awarded at the end of the period.

REINVESTING FOR GROWTH

Ultra continued its programme of reinvestment to drive long-term growth. Investments in the year were in new products and services, in new business development and in acquisitions.

In the period, the Group supported the flight test programmes of the F-35 JSF, Boeing 787, Airbus A400M and Gulfstream G650 aircraft. The production phases of these programmes will contribute to Ultra's growth in the medium and long term. Ultra is also developing and qualifying advanced aircraft cockpit displays and engine instrumentation equipment for smaller aircraft. In the period the Group increased its investment in the development of the next generation of battlespace communications equipment. Examples include new systems and equipment aimed at enhancing the flow of real-time tactical information to the warfighter 'on the move'. Additionally, the Group is developing equipment that enhances the security and performance of modern tactical networks. Ultra's internal investment in the period totalled £18.7m (2010: £17.7m) and is focused on investments that will generate an attractive return for the Group in the medium and long term.

At the end of December 2010, Ultra acquired Adaptive Materials Inc. ('AMI') in Michigan, USA which is now part of the Aircraft & Vehicle Systems division. AMI has developed fuel cells that provide more electrical power in less space than competing technologies and run on propane, a fuel that is readily available worldwide. AMI has integrated well into the Group and the market-facing synergies that AMI has with other Group businesses are being developed.

In early 2011 the Group acquired 3eTI, a business in Maryland USA that designs, develops, markets and supports military grade wireless local area network access points, mesh networks, security software, and encryption technologies for military, government and commercial markets. It is part of Ultra's Tactical & Sonar Systems division. 3eTI's specialised capabilities are contributing to the Group's advanced communication system solutions that are under development.

OPERATIONAL REVIEW

Aircraft & Vehicle Systems

Revenue in Aircraft & Vehicle Systems was £80.6m (2010: £89.3m). Revenue was reduced by 3% due to exchange rate movements. There was a further revenue reduction of 14% reflecting the absorption, in order to enhance market access, of Ultra's main activities in the UAE into a local joint venture which is accounted for as an associated undertaking*. Acquisitions added 6% to revenue while organic growth at constant currencies was 1%. Headline operating profit increased by 25% to £13.4m (2010: £10.7m). These results include AMI, acquired in December 2010. The division's order book grew slightly to £214.7m (2010: £212.7m).

There was solid demand in the US for Ultra's HiPPAG airborne compressors used in stores ejection applications, offset by reductions in the period in the rate of production of hand controls for remote weapon systems. International sales of Magicard ID card printers increased as did demand in the UK for specialist high integrity manufacturing services. The operating margin improved to 16.6% (2010: 12.0%) reflecting, as anticipated, the improved US dollar hedged rate and accounting for activities in the UAE as an associated undertaking.

Highlights of activities in the period that will underpin continuing growth included:

·; excellent performance of Ultra's ice protection equipment in the flight test programmes of the Boeing 787 and F-35 Joint Strike Fighter aircraft

·; initial flights of UAVs powered by AMI's fuel cells. These substantially enhance the endurance of the UAVs compared to battery power and thereby increase their operational effectiveness

·; successful completion of the critical design review for Ultra's landing gear, steering and door controls for Mitsubishi's new regional jet aircraft

·; trials in Afghanistan of Ultra's enhanced robotic controller used with an unmanned ground vehicle for the elimination of roadside bombs

Information & Power Systems

Revenue in Information & Power Systems grew by 7% to £114.6m (2010: £106.7m). Revenue was reduced by 3% due to exchange rate movements. Acquisitions added 1% to revenue while organic growth at constant currencies was 9%. Headline operating profit reduced by 3% to £12.8m (2010: £13.2m) after increasing the bad debt provision. The division's order book grew substantially to £449.6m (2010: £200.6m), reflecting the recent airport IT contract award in Oman.

There was strong demand in the period for specialist sensors and control systems for military and civil nuclear reactors. In addition, sales increased of the Group's specialist electrical power controls for Royal Navy submarines and for passenger transit systems. These increases were partially offset by reduced demand, both in the US and internationally, for Ultra's traditional ADSI command and control systems.

Features of the division's performance in the period that will support continuing growth included:

·; selection to be the master systems integrator at two airports in Oman

·; receipt of a contract relating to the manufacture of multiple reactor control & instrumentation systems for Royal Navy submarines

·; selection to supply a new, enhanced on-board signature management system for the Canadian Navy's upgraded Halifax class frigates

·; approval as a vendor to supply EDF with specialist sensors for its nuclear reactors being built around the world

Tactical & Sonar Systems

Revenue in Tactical & Sonar Systems was £148.3m (2010: £154.9m). Revenue was reduced by 4% due to exchange rate movements. Acquisitions added 4% to revenue and there was an organic revenue reduction at constant currencies of 4%. Headline operating profit rose 8% to £29.6m (2010: £27.5m). These results include a contribution from 3eTI, acquired in January. The closing order book was £368.2m (2010: £418.8m), reflecting reduced order cover from the US DoD for tactical radios.

This is the Ultra division that was most affected in the period by defence procurement delays in the US that are explained under the market conditions section below. These impacted sales of tactical radios, network access equipment and sonobuoys leading to lower revenue overall for the division. The reduction was partially offset by higher activity levels on international sonar system developments in Australia and the Netherlands. Operating profit generally tracked sales volume and one-off redundancy costs were recognised in some businesses. The overall increase in operating margin reflected profit recognition at the end of some development contracts. In addition, the Canadian government has committed to making multi-year contributions to the costs of new product development for which there was a 'catch up' in the period relating to earlier activity.

Growth in future years will be underpinned by the following developments in 2011:

·; receipt of a contract to develop an additional advanced special purpose cryptographic unit

·; international orders for electronic warfare equipment

·; contracts to supply modern cockpit and engine instrumentation equipment for the upgrade of private aircraft

·; an initial award for an advanced wireless security and protection system for US Navy shipyards

MARKET CONDITIONS

Many countries worldwide are still in the process of addressing the economic and political consequences of high budget deficits and this is exerting downward pressure on government spending. Overall, however, budgets addressable by Ultra in a range of markets remain sufficiently large to give the Group headroom for further growth.

Defence and security

The level of international tension remains high, driven by the actions of rogue states and terrorist groups, political unrest and regional disputes. As a result, expenditure levels in Ultra's main defence and security market sectors remain high. The focus of a large part of this expenditure is on improving information superiority, command and control, unattended, long-life sensors and systems and secure communications. Ultra has strong and growing market positions in all of these areas, which should remain the focus of customer expenditure even as current military operations are scaled back.

In Ultra's main markets of the US and the UK, it is anticipated that 2011 will turn out to be an unusual year. For various reasons, the procurement process in both countries has been dislocated. In the US, the delay in the appropriation of the FY 2011 budget has meant that the planned level of progress on many programmes will not be made within the fiscal year with a consequential effect on the rate of contract placement. It is possible that this will impact the opening position for the following fiscal year. In the UK, the Ministry of Defence is undertaking a redesign of its entire procurement process, with the aim of achieving better value for money with fewer staff. While Ultra has benefitted from some contracts being let, the rate of defence procurement has not been as high as some may have anticipated.

Overall, it is likely that only a few new platforms will be commissioned in the US and UK in the near term. However this typically drives demand for upgrades in the military capability of existing platforms by way of advanced electronic solutions. Ultra's focus on innovation, agility and speed of response positions the Group well to benefit from new and redefined requirements in these areas.

The broader security and intelligence markets continue to develop as areas of preferential customer spend, driven by an increasing level of terrorist, organised crime and state-sponsored cyber activity globally. The additional funding announced in many countries for addressing the cyber threat emphasises the increasing focus on this element of security concern. Covert surveillance and legal intercept of electronic communications continue to be effective ways of identifying and negating the threat. Ultra has highly specialised capabilities in secure communications, networks and high grade cryptographic equipment and management systems. The Group has won competitive contracts in the UK and US to develop next generation solutions and is well positioned to benefit from demand for enhanced cyber warfare defences around the world.

Transport

Population growth, global trade and the proliferation of low cost airlines worldwide is driving demand for civil aircraft and infrastructure investment in mass passenger transport systems. Whilst investment decisions in some countries may be slowed by economic concerns, demand remains strong in the world's high-growth economies and Ultra continues successfully to win business in this area.

The long-term, worldwide increase in air travel drives investment in infrastructure including airport IT systems where Ultra has a strong capability. An example of such investment is at Muscat and Salalah airports in Oman, where Ultra will act as master systems integrator for the new terminals.

Elsewhere in the aviation sector, increases have been announced in production rates at both Boeing and Airbus reflecting their long order books. Demand for airliners has been particularly strong in the Asia Pacific region of the world. Sales of equipment for the Boeing 787, when it enters airline service, will be additive to the Group's performance.

Ground transport systems also require continuing investment in regions of high population density, a trend from which Ultra, with its specialist trackside power supplies, should benefit.

Energy

Around the world the strategic need to have secure access to an increasing amount of energy with a low carbon foot-print is driving a steady increase in the level of investment in civil nuclear power generation. This investment is in extending the life of existing plant as well as building new reactors. Ultra has niche capabilities in the supply of high integrity nuclear control systems and associated specialist sensors. The Group is therefore well placed to benefit as market opportunities develop globally.

The events at the Fukushima nuclear power station in Japan, following the tsunami in March, have sensibly led national nuclear regulatory bodies to initiate further nuclear safety reviews. While it is likely that this will lead to delays in new build projects, there is little evidence that the global nuclear renaissance will be abandoned.

On a smaller scale, the need for low cost, portable and clean power sources in the commercial trucking, remote industrial and recreational marine and automobile markets is driving interest in fuel cells. Ultra's innovative propane-powered fuel cells are well positioned in this regard.

RISKS AND UNCERTAINTIES

A number of potential risks and uncertainties exist which could have a material impact on the Group's performance in 2011 and beyond and which could cause actual results to differ materially from expected and historical levels. The directors do not consider that the principal risks and uncertainties have changed substantially since the publication of the Group's annual report for 2010. An explanation of the risks detailed below, and the robust business strategies that Ultra uses to manage and mitigate those risks and uncertainties, can be found on pages 31 to 33 of the annual report which is available for download at www.ultra-electronics.com/investors.

The defence sector contributes 80% of Ultra's revenue and there is pressure on defence budgets. Current projections are, however, that baseline budgets, excluding supplemental funds for continuing operations, will continue to grow slowly in the US. In the UK, however, it is clear that defence budgets are reducing. Nevertheless, the overall size of defence budgets worldwide, relative to the Group's revenue, provides sufficient headroom to support Ultra's continuing growth. In 2011 the normal defence procurement processes in the US and UK have been disrupted and it is likely that the impact thereof will continue in the short term.

There is a risk of programme delays or cancellations but this has always been a feature of the Group's markets. As no single programme represents more than 5% of Ultra's revenue in any year, the cancellation or curtailment of any single programme is unlikely to have a material impact on the Group.

Movements in foreign currency exchange rates result in both transaction and translation effects on the Group's results. Ultra's projected net transaction exposure is mitigated by the use of forward hedging contracts. There will be a favourable impact on profit in 2011 as the effective hedge rate for US dollars moves from $1.93:£1.00 in 2010 to $1.55:£1.00 in 2011. By their nature, currency translation risks cannot be mitigated.

CONFIRMATION OF GOING CONCERN

The Directors have considered the guidance issued by the Financial Reporting Council and hereby confirm that the Group continues to adopt the 'going concern' basis in preparing its accounts.

The Board has made appropriate enquiries to support this view, looking forward for a period of at least twelve months. Salient points taken into consideration were:

- the Group's record of delivering high quality profits growth

- the adequacy of Ultra's banking facilities (see also Note 16)

- Ultra's positions in growth sectors of its markets

- the long-term nature of Ultra's markets and contracts

- that the Group's order book value exceeds £1bn for the first time

- the risks as discussed above

PROSPECTS

Ultra has for many years pursued strategies to spread risk and provide a solid base on which to grow. The Group has created a broad portfolio of differentiated offerings that are specified on an increasing list of international platforms and programmes. Ultra is positioned at multiple levels in the supply chain and has a broad customer base that includes governments and most of the world's major prime contractors. The Group has maintained its focus on areas of preferential customer spend; Ultra specialises in electronics and integrated solutions, which are attracting an increasing proportion of customer budgets, even in periods of market uncertainty. These enduring customer relationships and long-term programme positions give resilience to Ultra's business model and maintain momentum in the Group's continuing progress, despite market fluctuations.

Ultra will maintain its consistent programme of reinvestment to drive further organic and acquisition growth in the medium and long term. Internally, the Group continues to reinvest in highly differentiated products and services that meet the operational needs of customers. This market-led innovation, agility and speed of response to changing market requirements provide a competitive edge that allows Ultra to succeed and to build long-term relationships with customers. The Group is increasing its exposure to specialist security and intelligence markets and has an extensive portfolio of offerings positioned on long-term new build and upgrade programmes. Ultra's strong balance sheet can support the purchase of businesses that would further enhance the Group's portfolio and to which ownership by Ultra would add value.

Ultra's strategy is to have a broad range of positions in many different market sectors. Accordingly, across the Group there is a mix of businesses with firm orders for multi-year programmes as well as annual contracts and other companies that typically only have order coverage for the next few weeks or months trading. Overall, the value of Ultra's order book has grown to more than £1bn for the first time.

Ultra has a broad customer base worldwide, with international sales now representing about three quarters of Group revenue. Ultra's activities in civil markets have significant potential for growth, as evidenced by the recent win in Oman for airport systems integration. Ultra's main defence markets in the US and UK have, for different reasons experienced, spending constraints that have deferred order intake. Despite this the Group has achieved underlying organic revenue growth in the period although this has been at a lower rate than in recent years. In the same period the Group's operating margin has improved. Ultra's strategies for growth provide the Group with a resilient business model that underpins its performance in 2011 and beyond.

- End -

Enquiries:

Ultra Electronics Holdings plc 020 8813 4321

Rakesh Sharma, Chief Executive www.ultra-electronics.com

Paul Dean, Group Finance Director

Media enquiries:

Susan Ellis, Senior Communications Adviser 07836 522722

James White, MHP Communications 020 3128 8756

Further information about Ultra:

Ultra Electronics is an internationally successful defence and aerospace company with a long, consistent track record of development and growth. Ultra businesses constantly innovate to create solutions to customer requirements that are different from and better than those of the Group's competitors. The Group has about one hundred and fifty distinct market or technology niches within its twenty six businesses. The diversity of niches enables Ultra to contribute to a large number of defence, aerospace and civil platforms and programmes and provides resilience to the Group's financial performance.

Ultra has world-leading positions in many of its niches and, as an independent, non-threatening partner, is able to support all of the main prime contractors with specialist capabilities and solutions. As a result of such positioning, Ultra's systems, equipment or services are often mission-critical to the successful operation of the platform to which they contribute. In turn, this mission-criticality secures Ultra's positions for the long term which underpin the superior financial performance of the Group.

Ultra offers support to its customers through the design, delivery and support phases of a programme. Ultra businesses have a high degree of operational autonomy where the local management teams are empowered to devise and implement competitive strategies that reflect their expertise in their specific niches. The Group has a small head office and executive team that provide to the individual businesses the same agile, responsive support that they provide to customers as well as formulating Ultra's overarching, corporate strategy.

Across the Group's three divisions, the major market sectors in which Ultra operates are:

• battlespace IT, summarised as being the systems and equipment that allows coalition commanders to have an integrated, real-time picture of the disposition of friendly and enemy forces that is better than the one available to the enemy. This information superiority underpins rapid decision making which, together with effective command, control and communications, translates into military superiority. The use of battlespace IT is fundamental to the implementation of the military doctrines of 'network-centric warfare' or 'network-enabled capability' that are seen as transformational in the capability to win future battles. Expenditure on battlespace IT equipment therefore continues to represent an increasing share of the total defence budget in the main markets in which Ultra operates.

• sonar systems, expanding Ultra's traditional world-leading airborne anti-submarine warfare capability into broader activities in the underwater battlespace. These include integrated ship and submarine sonar systems, persistent seabed-deployed sensor arrays, torpedo defence and sea mine disposal systems. The fact that over forty countries have, between them, more than four hundred highly capable, stealthy submarines is continuing to focus expenditure in this sector.

• civil and military aircraft equipment, Ultra provides specialist sub-systems and equipment for military and civil aircraft. The main military aircraft programmes on which Ultra equipment is fitted continue to have political support, underpinned by consistent financial commitment. For civil aircraft, record order intake performance by all major aircraft manufacturers underpins increasing build rates for the medium term.

• specialist defence equipment, including power conversion and signature systems for naval ships and submarines. Ultra's specialist capability in high integrity controls for submarine nuclear reactors is included in this sector, for which there is continuing commitment to new platforms and the upgrade of existing boats. Ultra also supplies advanced sub-systems for modern armoured vehicles including those for electrical power management, indirect vision and weapon control. The need for increased mobility and force protection is driving a number of large military vehicle procurements in Ultra's main markets.

• specialist civil systems and equipment, including Ultra's advanced airport IT solutions. Airline passenger growth around the world is driving continuing expansion and upgrade of airport infrastructure. Ultra supplies trackside power equipment for rail transit systems, for which demand continues to be driven by the need to expand and upgrade rail networks. The UK market for nuclear power generation is expanding and Ultra's offering derived from its equivalent military capability is well positioned to benefit.

Ultra Electronics Holdings plc

Condensed Consolidated Income Statement

for the half-year ended 1 July 2011

Ultra Electronics Holdings plc

Condensed Consolidated Statement of Comprehensive Income

for the half-year ended 1 July 2011

Ultra Electronics Holdings plc

Condensed Consolidated Balance Sheet

as at 1 July 2011

Ultra Electronics Holdings plc

Condensed Consolidated Statement of Changes in Equity

for the half-year ended 1 July 2011

Ultra Electronics Holdings plc

Notes to the Condensed Consolidated Interim Financial Statements

for the half-year ended 1 July 2011

1. General information

The information for the year ended 31 December 2010 does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

These interim Financial Statements, which were approved by the Board of Directors on 29 July 2011, have not been audited or reviewed by the Auditors.

2. Accounting policies

The annual financial statements of Ultra Electronics Holdings plc are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The condensed consolidated financial statements included in this half-yearly financial report have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union.

The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements, except as described below.

The following Standards and interpretations were adopted as at 1 January 2011:

·; IAS 24 (revised) "Related Party Disclosure"

·; IFRIC 14 (amended) "Prepayments of a Minimum Funding Requirement"

·; IFRIC 19 "Extinguished Financial Liabilities with Equity Instruments"

The amendments do not affect the reported results or financial position.

3. Segment information

Unallocated assets represent deferred tax assets, derivatives at fair value and cash and cash equivalents.

Unallocated liabilities represent derivatives at fair value, tax payables, deferred tax liabilities, retirement benefit obligations and bank loans.

During the period to 1 July 2011 there was one direct customer (2010:one) that individually accounted for greater than 10% of the Group's turnover. Sales to this customer during the period were £88m (2010: £106m).

*In 2010, the Manufacturing & Card Systems business was moved from the Group's Information & Power Systems division into the Group's Aircraft & Vehicle Systems division. The prior period segmental analysis has therefore been restated to reflect this change to ensure that the presentation is on a consistent basis.

4. Additional performance measures

To present the headline profitability of the Group on a consistent basis year-on-year, additional performance indicators have been used. These are calculated as follows: