QinetiQ third quarter on target

Defence firm QinetiQ said trading in the third quarter was as expected and the outlook for the year remains unchanged from previous guidance.

Defence firm QinetiQ said trading in the third quarter was as expected and the outlook for the year remains unchanged from previous guidance.

The group said the performance of UK Services continues to benefit from a more competitive cost base and better project execution.

Last week QinetiQ agreed conditions with the MOD for the latest contract term for the provision of test, evaluation and training support services through to March 2018.

In the US, trading conditions remains difficult. Delays to contract awards continue to impact the performance of US Services and a significant number of bids remain outstanding, the group explained.

QinetiQ said the division is continuing to plan and implement cost reductions to retain competitive rates in challenging market conditions.

Meanwhile Global Products' performance for the year will be first half weighted following the delivery of two key orders for the Q-NetTM vehicle survivability product, plus additional spares orders, during the first six months of the year.

Following the achievement of a net cash position at the half year, the group's balance sheet and cash generation remain strong.

QinetiQ said the outlook for the year is unchanged from that set out in the half-year results in November 2012.

"As previously indicated, 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," it said in a company statement.

CJ

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