Qinetiq FY profit up as orders grow, dividend lifted

For the year to the end of March, pre-tax profit increased to £123.3m from £106.1m on revenue of £783.1m, up from £755.7m in 2016, with total orders of £1.7bn compared to £659.8m.

The total backlog grew from £1.3bn to £2.2bn and operating profit rose to £132.7m from £75.3m, enhanced by £7.4m of non-recurring trading items. Meanwhile, the full-year dividend per share was lifted to 6.0p from 5.7p.

During the period, the company secured a £1bn amendment to the Long Term Partnering agreement with the UK Ministry of Defence and established an international business and completed two acquisitions - Meggitt Target Systems and RubiKon Group in Australia - to support international growth.

Chief executive officer Steve Wadey said: "FY17 has been a year of building momentum for Qinetiq during which we achieved both good operational performance and significant progress in the implementation of our strategy. Operational achievements included delivering organic revenue growth for the first time for a number of years and the near doubling of the total group backlog. To support Qinetiq's future growth, we completed our first two acquisitions and, with the LTPA amendment with the UK Ministry of Defence, secured the largest and most significant contract since privatisation.

"Rapidly changing dynamics in defence and security markets are presenting both opportunities and challenges for our industry. Although demanding, this environment is one in which Qinetiq has the potential to thrive. As a result, we are looking forward to the future with confidence and are maintaining expectations for group performance in FY18."

At 0900 BST, the shares were up 1% to 311.90p.