QinetiQ ups FY guidance by 20%
Shares of defence markets researcher and technology firm QinetiQ raced ahead after it reported a return to net profit for the half year and said expectations for the current year have increased by around 20%.
Shares of defence markets researcher and technology firm QinetiQ raced ahead after it reported a return to net profit for the half year and said expectations for the current year have increased by around 20%.
The group posted a net profit of £66.6m for the six months to 30 September compared to a net loss of £42.1m the same time a year earlier. Revenue fell to £739.6m from £864.9m.
The drop in revenue reflects the continuing delays of service contracts in US and UK defence markets.
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
Chief executive officer Leo Quinn said, "Rapid execution of our self-help plan is building a stronger QinetiQ. The group is better focused on delivering its customers' changing needs, and this is starting to come through in its underlying performance."
QinetiQ believes that if customer requirements remain unchanged, it will exceed its original expectations for the current year by approximately 20%.
"Our confidence in QinetiQ's ability to build significant value over the medium term is demonstrated by the payment of the interim dividend of 0.9p," Quinn said.
Operating costs fell by 26% to £629.3m as it aims to simplify the structure of its business divisions.
--
cj
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Shein’s London IPO could go ahead, despite forced labour concerns
The chief executive of the Financial Conduct Authority suggests that alleged human rights breaches aren’t a reason to block Shein’s proposed London IPO
By Dan McEvoy Published
-
Elon Musk's $56bn Tesla pay deal rebuffed again by US judge
It is the second time Musk's pay deal has been rejected, with judge Kathaleen McCormick upholding her previous January decision
By Chris Newlands Published