Defence technology firm QinetiQ said it expects to meet full year forecasts but cautioned that conditions in UK and US defence markets remain challenging as deficit reduction programmes make future demand levels difficult to predict.
"However, absent any material change in customer requirements, the group's performance for the current year will at least meet the expectations set out at the interim results on 23 November 2011," the group said in a company statement.
Quintet said, within this uncertain environment, its priority remains completion and embedding of its 24 month self-help programme, which it says, is building a stronger and more competitive QinetiQ.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Its UK Services division continue to benefit from better project execution and from having lowered its cost base ahead of the expected revenue reduction.
In December 2011, the division won a four-year £38m Ministry of Defence naval contract.
In the US, defence budgets and spending priorities are still uncertain, delaying the award of contracts. As a result the US Services division is focused on providing a more competitive cost base and upgrading its business development process and resources, it said.
The Global Products division continues to perform well with military product sales and spares shipments in the US driving a stronger than expected third quarter.
