Qinetiq interims rise on 'strong' all-round performance

Defence technology company QinetiQ said interim underlying operating profit rose 16% to £59.7m as it reported a “good performance” across the business.

Revenue was £486.5m, up 10% on an organic basis, driven by new work from a battlefield tactical communications information systems contract, the company said on Thursday.

Stautory pre-tax profits rose to £59.3m from £52.7m a year earlier.

Global Products revenue was up 14% organically, principally driven by sales of target systems, it added.

Underlying earnings per share for the group were 9.2p, up from 8.1p a year earlier, with the increase primarily due to strong trading and top line revenue growth.

Statutory basic earnings per share for the total group were up to 11p from 8.9p with the current period enhanced by a £13.3m gain on disposal of surplus property.

Qinetiq last month said it had bought Manufacturing Techniques (MTEQ) on a cash-free, debt-free basis for $105m. The transaction is subject to US government approval and is expected to close towards the end of the 2020 fiscal year.

Chief executive Steve Wadey said the company was maintaining expectations for full year operating profit with “high single digit revenue growth”.

"Our focus for the remainder of the year is to win further campaigns globally, successfully deliver key programmes, and complete the acquisition of MTEQ to transform the scale of our US operations as we build an integrated, global defence and security company."