By Dan Lalor

LONDON (Reuters) - Europe's biggest defense company, BAE Systems Plc (BAES.L: Quote, Profile, Research), said on Thursday it expected Britain would extend delivery deadlines for planned defense projects to meet budget constraints, but would not cancel them.

Otherwise, "we have excellent forward visibility and a further year of good growth is anticipated in 2008," said Chief Executive Mike Turner, after the company unveiled a 22 percent rise in underlying profit for 2007, meeting analysts' forecasts.

Turner said if Britain went for an extended defense timetable it would pay more in the long run, as tomorrow's technology costs more, albeit for a better product.

He said BAE's end-December order book stood at 38.6 billion pounds ($75.2 billion), up 22 percent year-on-year.

UBS analysts said: "BAE painted a very positive picture with its outlook statement," and repeated their "buy" rating on the company's stock, with a 570 pence target.

BAE is involved in most major U.S. and British military projects, including the F-35 Joint Strike Fighter, Type 45 destroyer, Astute submarine and mine-resistant ambush-protected (MRAP) vehicles for use in Afghanistan and Iraq.

Britain, which is set to put the final seal on an order for two new aircraft carriers, also has plans to order refueling and transport aircraft (FSTA), confirm a military flying training system (MFTS) project, and state its plans for new medium-weight armored vehicles (FRES).

The latter is seen as being most vulnerable.