QinetiQ strategy on track after securing big contracts

QinetiQ issues a trading update on Friday, before entering its closed period for the half year ending 30 September.

The FTSE 250 company said trading had been in line with expectations, and the outlook for overall group performance for the financial year remained unchanged.

It sais the EMEA Services division started the year in a “strong” position.

“Following stronger order intake in the second quarter, FY18 revenue under contract is as expected at this stage in the financial year,” the board said in its statement.

“We reiterate our guidance for modest growth in revenue in FY18.”

The group's Global Products division had also been trading in line with expectations during the first half of the year.

“As a result of its contracted orders and pipeline of opportunities, as well as the anticipated full year contribution from QinetiQ Target Systems, the division is expected to grow in FY18.”

QinetiQ said it continued to make strategic progress as well, towards becoming a more “customer-focused and international” company.

“In both the UK and internationally we are particularly well placed to help customers meet the challenges of increasing capabilities while addressing budgetary concerns, and this is reflected in recent key contract awards,” the board said.

In its UK home market, as part of its strategy to modernise test and evaluation, the company secured an £8m order from the UK Ministry of Defence (MOD) to provide naval combat systems expertise for Type 26 Global Combat Ship.

That was added to the £110m 11-year Naval Combat System Integration Support Services (NCSISS) contract agreed with the MOD this time last year

It also secured an order from Boeing, worth approximately £25m, to continue to deliver wind tunnel testing for their commercial aircraft development until 2024

In its US and Australian markets, as part of its strategy to build an international company, QinetiQ said it was awarded a “significant order” for aircraft launch and recovery equipment for the new class of US Navy aircraft carriers, as well as an AUD 8m order to manage mine warfare maintenance facilities at HMAS Waterhen for the Australian Department of Defence.