TIDMQQ.
RNS Number : 2808E
QinetiQ Group plc
08 February 2018
News release
QinetiQ Group plc
Third Quarter Trading Update
8 February 2018
QinetiQ Group plc ('QinetiQ' or 'the Group') today issues a
trading update for its third quarter performance.
Maintaining expectations
Underlying trading for the Group was as expected during the
third quarter and the Group maintains its expectations for overall
performance for FY18.
EMEA Services
In EMEA Services trading for the period was in line with
expectations.
The Company is bidding for a number of new opportunities with UK
Government that will enable enhanced capability while also driving
cost efficiencies. Although the UK environment continues to be
challenging as previously announced at our 1H results, this
environment creates opportunities for QinetiQ and we remain well
placed to support our customers to achieve their objectives.
Internationally, QinetiQ continued to make good progress,
particularly in Australia with positive organic growth and in the
Middle East where we have seen strong demand for our advisory
services.
Global Products
Trading in Global Products for the period was in line with
expectations with good order performance in North America.
Strategy update
QinetiQ continues to make good progress implementing its
strategy to become a more customer focused and international
company, helping customers improve their capabilities while
addressing budgetary concerns.
We are making positive steps in modernising UK Defence Test and
Evaluation:
-- As result of our strategic investment into
UK T&E through the amended Long Term Partnering
Agreement ("LTPA") contract, we delivered
the first flights of our new aircraft and
signed our first multi-year GBP6m contract
from the Royal Netherlands Air Force to train
Dutch test pilots and flight test engineers
until at least 2022.
-- Under the LTPA contract, we received a GBP9m
order to modernise and develop Electro Magnetic
Open Sea Ranges which play a vital role in
helping to protect and ensure the survivability
of all Royal Navy surface vessels and submarines.
We continue to build an international company through growth in
our US and Australian home countries and wider international
markets:
-- In the US we won US$8m of orders for TALON
robots from key defence customers.
-- Reflecting our deepening relationship with
the Australian Department of Defence, an
additional AU$16m has been allocated to our
Air 7000 strategic support partner contract,
which supports the acquisition of airborne
maritime surveillance capability.
-- We signed our first GBP3m contract for the
supply of aerial targets and services to
a customer in the Middle East, further building
our presence within the region.
We continue to advance our innovation strategy across our
Company:
-- Our commercial and business model innovation
has supported the signing of our first weapon
system contract under our Strategic Enterprise
framework which has transformed the provision
of aircraft test and evaluation services.
-- As an example of our focus on disruptive
technology, we are at the leading edge of
laser directed energy weapon development,
booking further work in the period as well
as recently establishing our centre of excellence
for the technology.
Pension surplus
Following the latest triennial valuation and discussions with
QinetiQ's pension scheme trustees, the Company has a confirmed
actuarial pension surplus of GBP140.5 million as at 30 June 2017.
Consequently, the Company will cease making cash deficit recovery
payments of approximately GBP10.5 million per annum from March
2018.
For further information please contact:
David Bishop, Group Director Investor +44 (0) 7920
Relations and Communications: 108675
Ian Brown, Group Head of Investor +44 (0) 7908
Relations: 251123
Jon Hay-Campbell, Group Head of +44 (0) 7500
External Communications: 856953
About QinetiQ:
QinetiQ is a leading science and engineering company operating
primarily in the defence, security and aerospace markets. We work
in partnership with our customers to solve real world problems
through innovative solutions delivering operational and competitive
advantage. Visit our website www.QinetiQ.com. Follow us on LinkedIn
and Twitter @QinetiQ. Visit our blog www.QinetiQ-blogs.com.
The information communicated in this announcement contains
inside information for the purposes of Article. 7 of the Market
Abuse Regulation (EU) No. 596/2014
Disclaimer
This document contains certain forward-looking statements
relating to the business, strategy, financial performance and
results of the Company and/or the industry in which it operates.
Actual results, levels of activity, performance, achievements and
events are most likely to vary materially from those implied by the
forward-looking statements. The forward-looking statements concern
future circumstances and results and other statements that are not
historical facts, sometimes identified by the words 'believes','
expects', 'predicts', 'intends', 'projects', 'plans', 'estimates',
'aims', 'foresees', 'anticipates', 'targets', 'goals', 'due',
'could', 'may', 'should', 'potential', 'likely' and similar
expressions, although these words are not the exclusive means of
doing so. These forward-looking statements include, without
limitation, statements regarding the Company's future financial
position, income growth, impairment charges, business strategy,
projected levels of growth in the relevant markets, projected
costs, estimates of capital expenditures, and plans and objectives
for future operations. Forward-looking statements contained in this
announcement regarding past trends or activities should not be
taken as a representation that such trends or activities will
continue in the future. Nothing in this document should be regarded
as a profit forecast.
The forward-looking statements, including assumptions, opinions
and views of the Company or cited from third party sources,
contained in this announcement are solely opinions and forecasts
which are uncertain and subject to risks. Although the Company
believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that these
expectations will prove to be correct. Actual results may differ
materially from those expressed or implied by these forward-looking
statements. A number of factors could cause actual events to differ
significantly and these are set out in the principal risks and
uncertainties section of this document.
Most of these factors are difficult to predict accurately and
are generally beyond the control of the Company. Any
forward-looking statements made by, or on behalf of, the Company
speak only as of the date they are made. Save as required by law,
the Company will not publicly release the results of any revisions
to any forward-looking statements in this document that may occur
due to any change in the Directors' expectations or to reflect
events or circumstances after the date of this document.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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