Qinetiq lifts guidance on strong order intake

UK defence engineer Qinetiq lifted annual earnings guidance, as strong order intake boosted revenues.

The company on Wednesday said it expected revenue growth on an organic basis of around 5% for the 2022 fiscal year, with underlying operating profit of at least £135m.

“Operating cash flow has been excellent and we retain a strong balance sheet with net cash at 31 March 2022 of £225m,” the company said in a fourth quarter trading update.

Qinetiq said its full-year intake was strong at more than £1.2bn, boosted by significant growth in EMEA services, although this was offset by a slower recovery in its Global Products business.

Revenues in the US were slower to recover due to a constrained military budget.