QinetiQ revenue falls, though underlying profit improves

Science and engineering company QinetiQ posted its interim results for the half year to 30 September on Thursday, with orders increasing to £376.8m, from £228.4m, although revenue fell to £361.8m from £370.9m.

The FTSE 250 firm’s underlying operating profit was £51.9m, compared to £49.8m at the same time last year, with its underlying operating margin improving to 14.3% from 13.4%.

Its underlying profit after tax was £45.5m, improving from the £43.2m last year.

At period end, QinetiQ had underlying net cash flow from operations, post capital expenditure, of £50.9m, compared to £46.9m, with an underlying cash conversion ratio improving to 98% from 94%.

Underlying earnings per share were up marginally, to 7.9p from 7.3p.

The company reported net cash of £271.2m at period end, an uplift from £181.5m, and the board declared a dividend per share of 1p, a marginal increase from last year’s 1.9p interim dividend.

“We have secured good order intake, delivered a solid operational performance and demonstrated encouraging progress in the implementation of our strategy to drive future growth,” said group CEO Steve Wadey.

“We are on track with transforming the company and have secured the renewal of NCSISS for 11 years creating a UK centre of excellence for maritime mission systems and taking a significant step forward in modernising vital test and evaluation services in the UK.”