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%.

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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.