Qinetiq delivers 'strong' Q2 performance

Defence technology company Qinetiq delivered "a strong second quarter", resulting in improved organic revenue growth and operating profit margins in the first half.

Qinetiq said on Wednesday that its global solutions unit "performed well", with the former Avantus business in the US continuing to deliver revenue at double-digit margins, while its EMEA Services wing also continued to trade strongly, with "impressive organic revenue growth" and an "improved profit margin".

The FTSE 250-listed also highlighted that it had secured a record first-half order intake of roughly £950.0m, increasing its order backlog and improving its revenue under contract for the full year to 90%.

Whilst Winetiq noted that cash conversion in the first half was lower than the prior year due to short-term timing, it said full-year cash conversion will be in line with its previous guidance.

"With significant new orders and major contract renewals, we have de-risked the second half and are on track to deliver another year of good organic revenue growth at stable margins in line with our full-year expectations and long-term guidance," said Qinetiq.

As of 0835 BST, Qinetiq shares were up 0.92% at 327.60p.

Reporting by Iain Gilbert at Sharecast.com