News
release
QinetiQ Group
plc
First Quarter Trading
Update
18
July 2024 - QinetiQ Group plc
("QinetiQ" or the "Group") today issues a trading update covering
its first quarter to 30 June 2024.
On-track to deliver FY25 expectations - good first quarter
performance
Operational performance in the first
quarter has been good and we remain on-track to deliver high single
digit organic revenue growth at stable margin with good cash
conversion, in line with our FY25 guidance. Order intake
performance was good with revenue under contract for the full year
increasing to 73%, up from 64% at April 2024.
As part of our continued focus on
disciplined capital allocation, our £100m share buyback programme
is on-track to be completed in the financial year with £32m shares
purchased by the end of the first quarter.
Steve Wadey, Group Chief Executive
Officer said:
"I
am pleased that we have delivered a good start to the year, with
performance for the first quarter in line with our expectations and
attractive shareholder returns. The relevance and demand for our
services and products remains high in the elevated threat
environment, as we continue to focus on consistent operational
delivery for our customers and disciplined capital allocation.
These three factors underpin our confidence in delivering our FY27
target of c.£2.4bn of organic revenue at c.12% margin and
compelling value for our shareholders."
Good operational performance in EMEA
Services
EMEA Services continues to deliver
good operational performance with revenue growth in line with our
expectations. Our long-term contracts, such as Engineering Delivery
Partner in the UK and Major Service
Provider in Australia, continue to perform
well for our customers. We have also won a new framework contract
for NATO customers to utilise our Test & Evaluation services in
the UK provided under the Long Term Partnering
Agreement.
Strong order intake in Global Solutions
Global Solutions delivered strong
order intake with revenue performance in line with our
expectations. In the US, we have won a contract to be the sole
source provider of the survivability solution for the long-term
Future Long Range Assault Aircraft (FLRAA) programme, with our
Light-appliqué Armour Systems Technology.
Through good delivery performance on our Tethered Aerostat Radar
System contract we have also won an initial 10% growth in contract
value, and we are continuing to realise the benefits of our
integrated US platform by winning framework contracts with two new
National Security customers.
Board Changes and AGM
As announced on 16th April 2024,
Martin Cooper has been appointed as Group CFO. We are pleased to
confirm that Martin will join QinetiQ at the start of September,
sooner than originally anticipated.
QinetiQ's 2024 Annual General
Meeting (AGM) will be held at 11am on
Thursday 18th July at Ashurst LLP, London Fruit &
Wool Exchange, 1 Duval Square, London E1 6PW.
About QinetiQ
QinetiQ is an integrated global
defence and security company focused on mission-led innovation.
QinetiQ employs circa 8,500 highly-skilled people, committed to
creating new ways of protecting what matters most; testing
technologies, systems, and processes to make sure they meet
operational needs; and enabling customers to deploy new and
enhanced capabilities with the assurance they will deliver the
performance required.
For
further information please contact:
Stephen Lamacraft, Group Interim
Director Investor Relations:
+44 (0) 7471 885817
Lindsay Walls, Group Director
Communications (Media
enquiries)
+44 (0) 7793 427582