QinetiQ profits improve in third quarter

Defence and security technology group QinetiQ kept its sights firmly fixed on its full year targets after reporting third-quarter growth and further progress with international contracts.

The larger Europe Middle East and Africa services division delivered an unstated but "encouraging" level of organic order and revenue growth compared to the prior year.

Revenue under contract and operating profit were in line with board expectations, having faced margin pressure in the first half of the year.

Talks with the UK Ministry of Defence, which originally spun off the company onto the stock market in 2006, on the remaining scope of the Long Term Partnering Agreement for test and evaluation services "continue to make good progress" towards a pricing agreement through to 2028.

At the Global Products division, which saw margins squeezed in the first half, organic order and revenue growth was "positive" compared to the prior year, with underlying operating profit improving during the quarter.

Revenue performance was said to be "particularly strong" in QinetiQ North America, with momentum boosted by December's $90m contract win with the US Department of Defence to join the framework to support the sustainment of the TALON family of robotic systems.