QinetiQ full steam ahead for year

Defence firm QinetiQ said it expects to perform in line with its expectations for the year, despite challenging markets, as it posted a 16 per cent increase in profit.

Underlying operating profit rose to £95.3m for the half year ended September 30th 2012 copmared to £81.9m a year earlier. Revenue for the period fell 8% on an organic basis to £685.5m after continuing contract delays in US Services.

The decline in revenue was partially offset by quicker than expected Q-NetTM deliveries, which were originally expected in the second half of the year.

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Underlying pre-tax profit rose to £85.8m from £71.2m earlier while underlying net cash from operations, post capex, fell to £95.7m from £157.1m before.

QinetiQ recorded net cash of £21.5m compared to debt of £145.3m previously.

Underlying earnings per share rose to 10.5p from 8.8p before.

Commenting on the results Chief Executive Officer Leo Quinn said: "QinetiQ has delivered a strong first half performance in challenging markets and achieved a position of net cash on its balance sheet - an important milestone in the transformation of the group."

The group, which is implementing its Organic-Plus programme to boost growth, added, "Visibility remains much lower than usual, particularly in the US. Despite this uncertainty, with the benefit of the strong first half performance the Board believes the group as a whole will perform in line with its expectations for the year, absent any material change in customer requirements."

An interim dividend of 1.1p has been offered, up 22% from the same time a year earlier.

CJ