Privatised defence firm QinetiQ Group performed well in the first part of the financial year as its UK Service division continues to benefit from a more competitive cost base and better project execution as a result of the rigour embedded during the self-help programme.
The division is continuing to build on its core services expertise, securing a contract to establish a new Unmanned Air Systems Capability Development Centre (UASCDC) to support the MOD with the rapid development of UAS programmes from concept to deployment.
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The Global Products division had a strong first quarter, receiving orders for the Q-Net vehicle survivability product that were expected in the second half of the year. Two key orders, with a combined value of $44m, were for Navistar's MaxxPro MRAP vehicles operating in Afghanistan and for the US Army's Heavy Expanded Mobility Tactical Truck - the first time Q-Net has been fitted to a large haulage vehicle.
During the quarter the firm continued to generate cash and also completed a programme to repay $177m of private placement debt.
"Despite continuing uncertainty in the US market, the board believes that QinetiQ's increased competitiveness and agility will enable the group as a whole to perform in line with its expectations for the current financial year," the firm said.
The share price rose 1.51% to 168p by 13:00.
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