Qinetiq expects mid single-digit revenue growth after 'good' Q1

Security and defence contractor Qinetiq expects to record mid single-digit revenue growth in its current trading year thanks to a "good" first quarter.

Qinetiq saw revenue under contract rise to 85% in the three months ended 30 June, up from the 74% seen back in April.

In its Europe, Middle East and Australasian services unit, the FTSE 250 company continued to deliver on its growth strategy, with orders and revenue in the quarter ahead of the prior year at expected margins.

"This growth was driven by good performance across the division, particularly in our cyber information and training business," said Qinetiq.

It also noted that its global products division had performed well in the first quarter, with orders, revenue and operating profit all up year-on-year thanks to a "good" performance across all of its core product businesses.

Qinetiq reiterated expectations for the group's performance as a whole in 2020, with revenue growth at stable margins delivering continued operating profit progression, excluding non-recurring trading items.

At 0810 BST, Qinetiq shares were up 0.59% to 278.84p.