News
release
QinetiQ Group
plc
Second Quarter Trading
Update
15
October 2024 - QinetiQ Group plc
("QinetiQ" or the "Group") today issues a trading update covering
the second quarter.
On-track to deliver full year expectations
The Group has delivered good
operational performance in the second quarter and for the full year
we remain on-track to deliver high single digit organic revenue
growth at stable margin with high cash conversion, in line with our
guidance. Order intake momentum in the quarter has continued with
revenue under contract for the full year in line with this time
last year. Cash conversion at the half is consistent with
historical levels at c.80% and underpins our expectations for the
full year. Our £100m share buyback programme is on track to be
completed in the financial year with £62m shares purchased by the
end of the second quarter.
Steve Wadey, Group Chief Executive Officer
said:
"We have delivered a good operational and financial
performance in the quarter, and our services and products continue
to be of high relevance and significant value to our customers in a
heightened threat environment. Against a backdrop of political
transition in our core markets, I am pleased that order intake
momentum has been maintained, which underpins our long-term
sustainable growth."
Operational performance update
EMEA Services has maintained a high
performance level throughout the quarter characterised by strong
programme execution on our long-term contracts in the UK and
Australia.
Global Solutions traded in line with
our expectations including the legacy Avantus business, with strong
delivery across our major contracts with the Space Development
Agency and the Office of the Secretary of Defense Strategic
Capabilities Office in the US.
As announced on 30th September, we
have signed an agreement for the sale and leaseback of our
Farnborough site with the cash proceeds of £112m expected in the
second half.
Momentum of order intake underpins our medium and long-term
outlook
Reflecting the global threat
environment and increasing spending over the long-term by our
customers in our core markets we secured a number of highly
strategic orders in the quarter: These included:
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A ten-year €284m Aerial Training
Services contract with the German Armed Forces Procurement Office,
the largest and longest contract yet awarded to our Global Threat
Representation business.
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An Aerial Target Systems (ATS-3)
contract from the U.S. Army, for the first time entering the US
market as prime contractor to provide a comprehensive range of
highly sophisticated aerial target systems;
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A contract to deliver critical
technology for the Electromagnetic Aircraft Launch System and the
Advanced Arresting Gear to be installed on the U.S. Navy's next
Ford-class aircraft carrier; and
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A three-year contract, worth up to
£150m, to help deliver the next generation of tactical military
communications for the British Army, as well as commencing the
initial phase of the DragonFire laser directed energy weapon (LDEW)
Minimum Deployable Capability programme for the Royal
Navy.
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FY25 Interim Results
QinetiQ will publish its full
Interim Results on Thursday 14 November 2024. We will be hosting an
in-person results presentation at 09:30 GMT at the London Stock
Exchange, 10 Paternoster Square, London, EC4M 7LS. Registration to
join in-person or via the live webcast will be available via our
website at https://www.qinetiq.com/en/
or at https://brrmedia.news/QQ_Q2_24
About QinetiQ
QinetiQ is an integrated global
defence and security company focused on mission-led innovation.
QinetiQ employs circa 8,500 highly-skilled people, committed to
creating new ways of protecting what matters most; testing
technologies, systems, and processes to make sure they meet
operational needs; and enabling customers to deploy new and
enhanced capabilities with the assurance they will deliver the
performance required.
For
further information please contact:
Stephen Lamacraft, Group Interim
Director Investor Relations:
+44 (0) 7471 885817
Lindsay Walls, Group Director
Communications (Media
enquiries)
+44 (0) 7793 427582