Qinetiq posts rise in FY profit, upgrades long-term guidance

Qinetiq upgraded its long-term guidance on Thursday as it reported a rise in full-year profit and revenue amid record orders.

In the year to the end of March, underlying pre-tax profit jumped 33% to £189.7m, with revenue up 20% to £1.6bn and orders 41% higher at a record £1.7bn. The company hailed "continued high demand" for its offerings.

Chief executive Steve Wadey said: "We have delivered an excellent set of results characterised by a record order intake and strong operational performance across the group. The integration of the two strategically significant acquisitions of Avantus and Air Affairs gives us a compelling global platform from which to grow.

"We are operating in an uncertain world and the heightened threat environment is increasing demand for our distinctive offerings, which are closely aligned to our customers' priorities. We are now seeing an increased addressable market presenting opportunities for further growth and enhanced shareholder returns."

Qinetiq maintained its FY24 expectations but lifted long-term guidance. It is targeting high single digit organic revenue growth at 11-12% margin and has increased the scale of its ambition to grow the company to around £3bn revenue by FY27, including further strategic acquisitions.

"This upgraded guidance will approximately double our revenue and profit over the next four years, a 20% improvement to our previous guidance," it said.